Your homeowners, renters or auto insurance is probably something you don’t think much about until you need it.

So when your insurance provider notifies you that your rates will be going up by a large amount – as many Americans have experienced in recent years – it can be frustrating. According to the Consumer Federation of America, homeowners have seen their insurance premiums increase by an average of 24% from 2022 to 2025. And Forbes research found that the average cost of auto insurance was 33% higher in 2024 than in 2021.

The good news, though, is that you’re not completely powerless in that situation. It helps to understand the factors that could have caused the increase, and what options might be available to you to help lower your costs.

If your rates have gone up recently, here’s what you need to know.

Why Are Insurance Rates Rising?

• Costs of extreme weather disasters: Severe storms and extreme weather typically lead to high insurance claims activity as people repair or replace their cars or homes damaged by wind, hail or fire. This can then affect everyone’s rates in the marketplace, even for people who weren’t directly impacted, as insurance providers raise rates to cover the money spent on claims. In 2024 alone, there were 27 different weather and climate disasters in the U.S. that caused at least $1 billion in damages, making it the fourth-costliest year on record, according to the National Oceanic and Atmospheric Administration.
• Rising costs of repair: Elevated inflation over the last few years has significantly increased the costs of repairing, rebuilding or replacing your home or car if they’re damaged or destroyed. The higher costs of construction materials, auto parts and used cars are passed on to insurance providers as they cover claims, which are then passed on to consumers in the form of higher rates, even if you haven’t filed a claim recently.
• Your location: Where you live can also have a major impact on your insurance rates. For example, if you live in an area that’s more prone to severe weather – such as hail, tornadoes, hurricanes or wildfires – insurers will have to take on more risk to provide coverage to you, which translates to higher premiums that you may have to pay.
• Your claims history: The type and amount of insurance claims you file can also affect your premiums. If you recently filed a large claim, or have a history of filing multiple claims, your insurance provider will take that into account when updating your rates for the coming year.
   

What You Can Do About Rising Rates

If you received a notice that your rates are going up, don’t be afraid to call your provider to ask about the increase and if there’s anything that can be done about it. You could have several options available, including: 

• Increasing your deductible: The higher your deductible, the less you’ll pay in premiums.
• Combining your policies: Look at bundling your home and auto policies together, if you haven’t already. This can usually provide savings on your rates.
• Asking about discounts: Your insurer may offer a discount for installing protective devices, such as a burglar alarm or automatic water shutoff in your home, or anti-theft devices in your car. You should also mention if you’ve had any major updates or renovations done to your home recently, such as replacing your home’s roof or windows. Because these types of updates provide better protection for your home than if they were outdated and in need of repair, they could translate to lower rates for you.
• Getting a new quote: If you haven’t gotten a new quote lately, you could be missing out on savings. It only takes a few minutes to reach out to a provider to make the request.
   

If your rates are going up, contact Bell Insurance at 800-369-2501 today. As an independent agency, Bell’s team works with different carriers to find the best options to help you protect your home or car.