How to Lower Your Home Insurance Rates Without Sacrificing Coverage
Home insurance is essential—it protects your most valuable asset from disasters, theft, and unexpected expenses. But paying too much for it? That’s not. The good news is that you don’t need to strip away valuable protection just to reduce your premium.
In 2025, there are smart, simple ways to lower your home insurance rates without sacrificing coverage. Here’s how to keep more money in your pocket while keeping your home properly insured.
1. Bundle Your Home and Auto Insurance
One of the most effective ways to save on your home insurance is by bundling it with other policies—especially auto insurance. Most major insurers offer multi-policy discounts that can range from 10% to 25%.
Why it works: It reduces the insurance company’s risk of customer churn and allows them to offer you more favorable rates.
Tip: Always get separate and bundled quotes when shopping to confirm the discount is actually saving you money.
2. Increase Your Deductible (Strategically)
Your deductible is what you pay out of pocket when you file a claim. The higher your deductible, the lower your annual premium—sometimes significantly.
For example:
- A $500 deductible might cost you $1,750/year
- A $2,500 deductible could lower that to $1,400/year
Tip: Only raise your deductible if you have enough emergency savings to comfortably cover it. It’s a great long-term savings strategy if you rarely file claims.
3. Ask About Loyalty Discounts
If you’ve been with the same insurer for several years, you might be eligible for a loyalty discount—but many companies won’t offer it unless you ask.
Some insurers also provide:
- Claim-free rewards
- Decreasing deductibles over time
- Annual premium reductions for staying claims-free
Tip: Don’t assume loyalty equals the best rate. Always compare competitors’ rates every couple of years to make sure you’re not overpaying.
4. Take Advantage of Smart Home Tech Discounts
Smart home devices aren’t just for convenience—they can make your home safer and help you qualify for discounts.
Popular devices that may reduce your premium:
- Monitored security systems
- Smart smoke or carbon monoxide detectors
- Water leak detection systems
- Automatic shut-off valves
- Smart locks and cameras
Tip: Ask your insurer for a list of approved devices or preferred vendors—they may offer extra incentives.
5. Make Home Improvements That Reduce Risk
If your home has aging systems or outdated infrastructure, you’re paying more than you need to. Insurance companies charge higher premiums for homes with:
- Old roofs (especially 20+ years)
- Outdated electrical wiring
- Plumbing issues
- Fire-prone materials
Tip: Replacing a roof or updating your electrical system might cost more upfront, but it often pays off in reduced insurance premiums and better protection.
6. Shop Around (And Do It Regularly)
It’s easy to “set and forget” your home insurance, but premiums can creep up over time—even without claims. That’s why it pays to re-shop your policy every 1–2 years.
Use a comparison site or independent broker to gather quotes. Just make sure you’re comparing apples to apples in terms of coverage, limits, and deductibles.
Tip: Switching insurers doesn’t mean you lose your past claim-free history. Some providers honor it to give you a better deal upfront.
7. Avoid Small Claims When Possible
Filing frequent or minor claims can raise your rates—sometimes more than the value of the claim itself. If the damage is minor (say, $800 and your deductible is $500), it might be better to cover it out-of-pocket and keep your claims record clean.
Tip: Save insurance for larger emergencies. A low-claims history is often rewarded with discounts and better renewal rates.
8. Eliminate Unnecessary Coverage Add-Ons
Over time, you may accumulate riders or add-ons that no longer make sense.
Examples include:
- Scheduled coverage for jewelry or electronics you no longer own
- Additional structures or outbuildings no longer in use
- Temporary endorsements you forgot to remove
Tip: Review your policy annually and remove or adjust any extra coverage you don’t need anymore.
9. Improve Your Credit Score
In most states, insurance companies can legally use your credit score to determine your rate. A higher score typically leads to lower premiums.
Tip: Pay bills on time, reduce credit card balances, and regularly monitor your credit report for errors. Improving your score even slightly can result in noticeable savings.
10. Talk to a Human (Seriously)
Many discounts aren’t automatically applied—you have to ask for them. Call your insurer and say, “Can you walk me through all available discounts?” You may discover opportunities you didn’t know existed.
Some common (but often missed) discounts:
- Retiree or senior discount
- New customer incentives
- Gated community or HOA discounts
- Non-smoker discount
- Green or energy-efficient home discount
Final Thoughts: You Don’t Need to Compromise Coverage to Save
Saving on home insurance doesn’t mean skimping on protection. With a few strategic decisions—like bundling, installing smart devices, raising your deductible, or re-shopping your policy—you can keep your coverage strong and your premiums low.
Ready to protect your entire home the smart way? You might also want to understand another layer of protection:
