How to Lower Your Home Insurance Premium
Your premium is not a fixed number. Market-wide increases are real, but a meaningful share of what you pay comes down to choices you control: your deductible, the policies you carry together, your home’s condition, and how often you compare your premium to what’s available. Here’s what moves your premium number—and what to do about each part.
Key takeaways
Raise your deductible—going from $500 to $1,000 may lower your premium by as much as 25%, according to the Insurance Information Institute
Bundle home and auto—buying two or more policies from the same carrier may reduce your premium, but confirm the combined price beats buying them separately
Maintain the home—roof, plumbing, and electrical updates, plus qualifying safety devices, can lower what you pay; discount types and amounts vary by carrier and by state
Compare every year—the same home can be priced differently by different carriers, so an annual comparison is how you find out where your rate actually stands
Raising your deductible can be one of the easiest ways to lower your premium
Your deductible is what you pay toward a loss before your carrier pays anything. The higher you set it, the less you could pay in premium. Our breakdown of how to choose a deductible amount walks you through the trade-off in more detail.
Most carriers start at a $500 or $1,000 minimum. If you can afford to raise your deductible to $1,000, the Insurance Information Institute estimates you may save as much as 25%. Going higher than $1,000 can reduce the cost further.
The trade-off is real, so treat it as a budgeting decision rather than a quick win. Before you raise it, make sure you can comfortably pay the new amount out of pocket on short notice.
One thing to check first: if you live in a disaster-prone area, your policy may carry a separate deductible for specific types of damage. Coastal homes in the East often have a distinct windstorm deductible; hail-prone states often have a separate hail deductible, and earthquake policies carry their own. Those are frequently set as a percentage of your dwelling limit rather than a flat dollar amount, which means the out-of-pocket number can be much larger than your standard deductible.
Percentage-based wind and hail deductibles are common in high-exposure states, and our Texas home insurance guide shows how that structure works in practice. Read both before you change either.
Bundling home and auto can lower your bill. Just check the math.
Many carriers that write home insurance also write auto and umbrella policies, and buying two or more from the same company may reduce your premium.
The step people skip is verifying it. A bundle is only a savings if the combined price is lower than what you would pay buying each policy separately from different companies. Pull both numbers before you commit.
If your home and auto policies currently sit with different carriers, that’s the first place to look. Requesting a multi-policy quote shows you the bundled number so you can compare it directly against what you pay today.
Prevention can help lower your risk profile. That’s what carriers price.
Carriers set rates based on the likelihood and size of a future loss. Anything that reduces that likelihood works in your favor—making maintenance a good way to possibly
lower your rate and not just a chore.
Devices that catch small problems early are the clearest example:
Water leak sensors near water heaters, washing machines, and under sinks
Smart smoke detectors that alert your phone when you’re away
Professionally monitored fire and security systems
Smart thermostats that warn you when indoor temperatures approach pipe-freezing levels
Deadbolts and exterior cameras
Most insurers do offer discounts for safety and security devices, though not every system qualifies and the types and levels of discount vary by company and by state. Ask what your specific carrier credits before you buy hardware for the discount alone. The prevention value stands on its own either way: a leak you catch in an hour is not a claim.
Larger updates can move the number too. Modernizing plumbing, heating, and electrical systems, reinforcing a roof, or upgrading to stronger roofing materials all reduce the chance of a payout, and many carriers price that in.
Every carrier sees risk differently. Comparing them reveals your options.
One carrier may treat a 15-year-old roof as a major factor while another weighs your claims history more heavily. That’s why the same home can carry different premiums depending on who writes the policy. If you haven’t shopped in a while, our guide to buying home insurance covers what to have ready before you start.
Working with an agency changes what you can see. Hippo compares quotes from 70+ carriers in about 60 seconds, so you see the market’s view of your home, rather than just one company's.
Make it a habit rather than a one-time project. Comparing once a year—and again after any significant improvement—is how you catch the years when your current rate has drifted away from the market.
What drives your premium—and what you can’t change
Some of your premium is set by forces outside your household.
Premiums have risen across the country. The NAIC found that average premium per policy increased in every one of its four regions between 2018 and 2024, with inflation-adjusted increases of roughly 2.4% to 5.3% per year. Rebuilding costs, weather risk, and claims patterns drive most of that, and none of them respond to anything you do at your kitchen table. For a fuller breakdown of what homeowners are paying now, see our guide to home insurance costs.
The single largest input on your own policy is your replacement costs, which is what it would cost to rebuild your home from scratch, not what it would sell for. Location, home age, roof condition, and claims history all adjust from there.
Still have questions?
Does a higher deductible always lower my premium?
Raising your deductible generally lowers your premium, because you’re taking on more of the initial cost of a loss. Choose an amount you could pay out of pocket without strain, and check whether your policy has separate deductibles for wind, hail, or earthquake damage before you adjust the standard one.
Can I get a discount for a new roof?
Many carriers price newer roofs and impact-resistant materials more favorably, since both reduce the chance of leaks and structural damage. Discounts and eligibility vary by carrier and state, so ask before you start the project.
How often should I shop for a new rate?
You should shop for a new rate at least once a year, and again after any significant improvement to your home. Market conditions and carrier formulas change, so a rate that was competitive last year may not be today.
What to do next
Start with the two changes you can make this week: check what your carrier would charge at a $1,000 deductible, and pull a bundled quote if your home and auto policies sit with different companies. Then compare the result against the wider market. Our home insurance buyer's guide covers the rest of what to check at renewal.
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This article is for informational purposes only and was compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer.
Sources cited are publicly available and referenced in August, 2026.
