Shopping for home insurance: Are homeowners switching and saving?

Does shopping around for homeowners insurance really save money?

While shopping around is the best way to find a better rate, recent spikes in insurance rates have made finding a better deal more difficult, especially in parts of the country where coverage options are becoming more limited, like Florida and California.

The 2025 J.D. Power U.S. Home Insurance Study, which ranks the best and worst home insurance companies and examines shoppers' habits, shows that almost 50% of homeowners receiving a premium increase will likely shop for new coverage.

More homeowners with high average premiums and multiple policies are experiencing rate increases than others. However, insurers may be able to retain these policyholders by communicating effectively. Overall satisfaction scores increase by 184 points out of 1,000 when an insurer provides clear reasoning for the rate increase.

Are people switching homeowners insurance companies?

The J.D. Power Home Insurance Study found that more people are experiencing rate increases and plan to shop for new coverage. However, homeowners may find it challenging to find a new insurer with low rates and the coverage they need.

A TransUnion study [2026] found that home insurance shopping was up 5% in the fourth quarter of 2025, compared to the same period in 2024. Less than a quarter of those shopped with three or more insurers, while 77% shopped only one or two.

While the study doesn't say how many of those people actually switched, it is likely that many of those who shopped with fewer companies did; those unable to find a lower rate are more likely to keep shopping.

How much can you save on home insurance when you shop around?

The average home insurance rate is $2,543 yearly, but many factors, such as your home's age, location, insurance coverage levels, and credit score, significantly affect rates.

According to our data, Amica has the lowest annual average rate, at $1,510 (among national carriers), while Progressive has the highest at $4,227. You wouldn’t know how much you could save if you didn't compare multiple quotes.

It’s important to compare rates, discounts, and coverages often to find the insurer that fits your needs. This proactive approach can lead to substantial savings.

Why should you shop around for home insurance?

Each insurance company has its own formula for determining rates. For example, one insurer may consider the age of your home most important while another considers how many claims you’ve filed to be most important.

Additionally, personal factors can change from year to year. Your credit score could increase, or adding safety features to your home, like an alarm, can earn discounts.

Shopping around to see which insurer is the best fit is essential. Since algorithms can change, shopping each year helps ensure you’re getting the cheapest coverage.

Home and auto bundling: Should you unbundle to save?

Bundling home and auto policies has always been viewed as the easiest way to save money on insurance. However, that is changing, and bundling home and auto may not be the best deal. Bundling discounts offer lower rates, but many consumers find that having separate insurers gets them the best deal.

Many people are discovering it’s sometimes cheaper to get homeowner and auto insurance from two different companies. Since no one-size-fits-all formula for determining insurance rates exists, one company may offer more affordable auto coverage while another has lower home insurance rates.

How to find the best price on homeowners insurance

Although shopping for insurance is an essential part of the process, other ways exist to get the cheapest homeowners insurance available.

To get the most affordable homeowners insurance:

Review coverage needs. Get an up-to-date estimate to determine home replacement costs and ensure you have enough coverage to meet those needs. Having too little or too much coverage can significantly increase costs.
Raise your deductible. A higher deductible means lower insurance rates. However, you will have greater out-of-pocket costs if you file a claim.
Bundle policies. While you can sometimes find cheaper coverage if you shop for separate policies, bundling can save you money.
Take advantage of discounts. Insurance companies offer numerous discounts in addition to a bundling discount. For example, consider safety systems and occupational discounts.
Avoid filing claims. Filing claims leads to higher home insurance rates. Consider paying for minor repairs and damages instead of filing an insurance claim.

Sources

J.D. Power. “2025 U.S. Home Insurance Shopping Study.” Accessed April 2026.

FAQ: Will you save on home insurance by switching?

How often should I shop around for home insurance?

Ideally, shopping for home insurance each year will ensure you get the most affordable rates. Since most policies are for a one-year term, shopping just before your policy expires lets you avoid cancellation fees and allows you time to renew if your current policy is best.

How many insurance quotes should I get?

Experts recommend that you compare three to five insurance quotes annually.

Is J.D. Power a reliable source?

Yes, J.D. Power has been around for over 50 years and is a trusted voice in the insurance industry. The company specializes in learning customer behaviors and elicits customer input to rate satisfaction in various areas.

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