Smart Savings: How to Lower Your Home Insurance Costs

Homeowners insurance isn’t just creeping up—it’s surging. The U.S. Bureau of Labor Statistics report shows costs rose nearly 8% between April 2024 and April 2025, and 24% since May 2020. With rates climbing this fast, it’s easy to feel like you’re stuck paying more every year.

But the good news is, you have more control than you think. By making a few smart moves, you could save hundreds of dollars a year—without giving up the protection your home needs. 

At WorkMoney, we break down the quick wins, long-term strategies, and tools you need to make saving on home insurance easier.

Quick Wins to Save Right Away

Where you live plays a huge role in what you pay for homeowners' insurance. Depending on your state, the average cost can range anywhere from about $71 a month to more than $500.

For instance, states like Oklahoma, Nebraska, and Texas pay the most because of severe weather risks from hurricanes and tornadoes. Meanwhile, Delaware, Hawaii, and Vermont tend to be among the cheapest, since they face fewer major natural disasters.

If you need relief fast, start with the changes that deliver the biggest savings in the shortest time. Here are a few quick wins that don’t require a lot of hassle or complicated steps—just a few smart choices that can shrink your bill right away.

Raise Your Deductible

Your deductible is the amount you pay out of pocket before your insurance covers the rest. According to the Insurance Information Institute (III), raising a deductible from $500 to $1,000 can cut premiums by up to 25%.

Plus, the higher the deductible, the bigger the savings. For example, a policy costing $3,000 a year with a $1,000 deductible could drop by about 24% if you raise it to $2,500—and by nearly 40% if you raise it to $5,000.

This works best if you have an emergency fund, so you’re prepared to handle the bigger upfront cost if you ever need to file a claim.

Bundle Policies for Discounts

One easy way to lower your home insurance bill is to bundle it with another policy—like auto, renters, or even life insurance. Insurers reward loyalty, and bundling services like your home and auto policies can save you from 10% to 25% on your premiums. That can add up to several hundred dollars a year in savings.

Bundling also makes it easier to manage your coverage since you’re dealing with one company, one bill, and one renewal date. Regardless of how you structure your coverages and policies, it's worth shopping around or using a comparison tool like this one.

Ask About Hidden Discounts

Insurance companies don’t always tell you about every discount you qualify for—you usually have to ask. A quick phone call can uncover savings you didn’t even know existed.

Some of the most common “hidden” discounts include:

• Home safety upgrades: Smoke detectors, burglar alarms, smart home devices, or even deadbolt locks.

• Lifestyle discounts: Being a nonsmoker, working from home, or reaching retirement age.

• Loyalty discounts: Staying with the same insurer for several years.

• Payment discounts: Setting up autopay, paying the annual premium in full, or receiving paperless bills.

• Claim-Free: Most insurers offer a discount if you haven't filed a claim in five years.

Even small discounts can add up to real money over the course of a year. Just don’t assume your insurer will volunteer the information. Make it a habit to call every year and ask directly, “Am I getting every discount I qualify for?”

Upgrade Your Home for Lower Premiums

Once you’ve asked about discounts, you can also take matters into your own hands by making improvements that lower your risk. 

Improve Security

Some minor safety upgrades that can make your home less risky and reduce your premium include:

• Home safety upgrades: smoke detectors, burglar alarms, smart home devices, or even deadbolt locks can save you around 5%

• Upgrade to advanced alarms that alert fire or police — can save you

Disaster-Proof Your Home for Bigger Savings

Some upgrades cost more upfront, but they can make your home safer and cut your premiums more:

• Add storm shutters to guard against hurricanes or strong winds

• Install a sprinkler system for extra fire protection

• Replace an old roof to reduce storm damage risks

Most states offer incentives like rebates or grants to help cover certain home improvements. It’s money you’ve already earned, and you can look up programs in this federal database.

Play the Long Game With Smart Money Moves

While quick wins can help, some strategies take more time and consistency. Here are a few long-term moves that can keep your premiums lower year after year.

Build and Protect Your Credit Score

The National Association of Insurance Commissioners (NAIC) reports that about 85% of home insurers use credit-based insurance scores in states where it’s allowed. That can feel unfair if your score isn’t great. But you’re not alone, and there are simple steps you can take to improve your score, including: paying your bills on time, keeping credit card balances low, and avoiding opening too many new accounts.

These simple habits can gradually raise your credit score and help bring your home insurance rates down.

Don’t File Small Claims

It’s tempting to use insurance for every repair, but filing frequent small claims can raise your rates. 

Protect your record by:

• Saving claims for major losses like fire, storm damage, or theft

• Paying for minor fixes out of pocket when you can

• Keeping receipts and records in case you need to prove repairs later

A clean claims history shows insurers you’re low risk, which can help keep your premiums lower.

Review Your Coverage Regularly

Over time, your policy may no longer match your actual needs. Reviewing your home insurance once a year helps you avoid paying for more coverage than you need. Check for the following:

• Too much insurance (for example, carrying coverage that exceeds your home’s value)

• Outdated add-ons you no longer use or need

• Life changes—like renovations, new valuables, or family changes—that may require updates

A quick review can prevent overspending and make sure you’re only paying for what truly protects you.

Shop Smarter, Not Harder

Most guides just say “shop around,” but that can feel overwhelming. WorkMoney makes it easier by pointing you to tools that do the heavy lifting for you.

Compare Rates Without the Hassle

Instead of spending hours calling different companies, use Insurify to compare rates in minutes. You’ll see quotes from multiple insurers at once without the frustration.

With Insurify, you can:

• Check multiple insurers quickly without extra legwork

• Spot hidden savings you may be missing

• Switch easily if you find a better deal

It’s a simple way to make sure you’re not overpaying for coverage.

Know When to Switch or Negotiate

Renewal time is the perfect chance to save. Before your policy renews:

• Call your insurer and ask if you qualify for a lower rate

• Mention improvements like a better credit score or home upgrades

• Compare with Insurify’s results so you know if switching makes sense

Take Control, Don’t Feel Ripped Off

Paying for insurance can feel like money out the door, but small changes add up. For example, one insurer states that new customers who bundle home and auto can save over $950 a year. That’s not just cutting costs—it’s taking control of your budget.

Final Thoughts

Homeowners insurance is essential, but overpaying for it isn’t. Whether it’s quick wins like raising your deductible or bigger steps like building your credit, every move puts money back in your pocket.

But you don’t have to do everything at once—just start with one change. Call your insurer, check for discounts, or compare rates with a tool like Insurify. Each step adds up, and before long, you’ll have a policy that protects your home without draining your budget.

At WorkMoney, we believe saving money should be simple, doable, and stress-free—and that includes your homeowners' insurance.