How to Lower Homeowners Insurance Premiums — 12 Proven Strategies
Homeowners insurance premiums have climbed 20–30% nationally since 2022, with some states seeing 50%+ increases. Unlike a mortgage rate you lock in, insurance renews annually — and insurers count on inertia. Most homeowners never compare quotes or ask about discounts. These 12 strategies can cut your premium by hundreds to over a thousand dollars per year.
See what your home should cost to insure with the Homeowners Insurance Calculator.
12 Ways to Lower Your Premium
| # | Strategy | Typical Savings | Effort |
|---|---|---|---|
| 1 | Shop around every 2–3 years | 15–40% | Medium |
| 2 | Bundle home + auto | 10–25% | Low |
| 3 | Raise your deductible | 10–25% | Low |
| 4 | Improve your credit score | 10–30% | Medium-High |
| 5 | Install security/smart home devices | 5–15% | Medium |
| 6 | Upgrade roof (impact-resistant) | 10–35% | High |
| 7 | Fortify against wind (hurricane clips) | 5–20% | Medium |
| 8 | Claims-free discount | 5–15% | Time |
| 9 | Loyalty discount | 3–10% | Time |
| 10 | Pay annually instead of monthly | 5–10% | Low |
| 11 | Review and remove unnecessary riders | 5–15% | Low |
| 12 | Ask about group/affinity discounts | 3–10% | Low |
The Strategies That Save the Most
1. Shop Around (15–40% savings)
The single most effective move. Insurers use different pricing models, and the cheapest company for your neighbor might be the most expensive for you. Get quotes from at least 3–4 insurers, including:
- One national carrier (State Farm, Allstate)
- One direct writer (Geico, USAA if eligible)
- One or two through an independent agent (who can compare dozens)
Independent agents are especially valuable for homeowners insurance because they access regional and surplus lines carriers that don't advertise directly.
2. Bundle Home + Auto (10–25%)
Almost every insurer offers a multi-policy discount. Bundling your home and auto with the same company typically saves 10–25% on both policies combined. Even if the individual auto or home price is slightly higher, the bundle discount often makes the total cheaper.
3. Raise Your Deductible (10–25%)
Moving from a $1,000 to $2,500 deductible can cut your premium by 15–25%. The trade-off: you pay more out of pocket on each claim. But most homeowners file a claim only once every 8–10 years. If your premium drops by $400/year and you go 5 years without a claim, you've saved $2,000 — more than covering the higher deductible.
Roof Upgrades: The Overlooked Discount
Your roof is the #1 factor in your premium after location. Insurers know that 40% of all homeowners claims involve roof damage. An old roof (15+ years) can add 20–50% to your premium or even make your home uninsurable in some states.
| Roof Type | Premium Impact |
|---|---|
| New asphalt shingles (0–5 years) | Baseline |
| Impact-resistant shingles (Class 4) | 10–35% discount |
| Metal roof | 10–20% discount |
| Older roof (15–20 years) | 15–30% surcharge |
| Roof 20+ years | May be uninsurable at standard rates |
If you're replacing your roof anyway, upgrading to Class 4 impact-resistant shingles costs 10–20% more than standard shingles but can reduce your insurance by $400–$1,200/year — paying for the upgrade within 2–4 years.
Discounts You Have to Ask For
Many discounts aren't applied automatically. Call your insurer and specifically ask about:
- Claims-free discount: 5–15% off if you haven't filed in 3–5 years
- New home discount: 5–15% for homes built in the last 10 years (newer wiring, plumbing, roofing)
- Retired/work-from-home: 5–10% because someone is usually home, reducing theft and damage risk
- Gated community: 5–10% for reduced theft risk
- Affinity/group discounts: Alumni associations, professional organizations, employers
For understanding exactly what your policy covers and where gaps exist, see What Does Homeowners Insurance Cover?. For choosing the right deductible amount, read Home Insurance Deductible — How to Choose. And for state-specific cost data, check Average Home Insurance Cost by State 2026.
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