Top 10 Worst Homeowners Insurance Rate Increases (2025 Update)
Are your homeowners insurance rates going up? You’re not alone. In fact, insurance companies across the country are raising rates, and some are seeing some significant hikes. I’ve got the latest list of the top 10 insurance companies with the biggest rate increases.
If your provider is on this list, it might be time to shop around and ensure you’re getting the best coverage at the best price.
Let’s dive into the list and see who’s raising rates—and by how much.
Introduction
The latest homeowners insurance rate increase report from S&P Global Market Intelligence was released on January 21st, 2025. This report highlights the biggest rate hikes over the last 12 months, and we’re going to break it down for you.
Today, we’ll count down the top 10 worst homeowners insurance rate increases over the last 12 months, and I’ll also share the six-year average rate increases for these companies. Some of these long-term increases are shocking, so if you haven’t reviewed your policy in the last year, now is the time to take action.
A quick note: These increases reflect national averages across various states. Your state may experience a higher or lower increase than what I share. For example, State Farm raised rates by 18% in Colorado, but the national average is 10.5%.
Let’s get started, counting down from the lowest increase to the worst.
#10 – USAA: 3.1% Increase
Starting at number 10, USAA raised their rates by 3.1% in the past year. It might seem like a small increase, but over the last six years, their rates have increased by 31.4%. If you’re a loyal USAA customer, now might be a good time to review your policy and make sure you’re not overpaying.
#9 – Chubb: 5.4% Increase
Next, Chubb, known for insuring high-value homes and high-net-worth clients, raised rates by 5.4% last year. Over the last six years, their rates have gone up by 44.9%. If you’re with Chubb and haven’t reviewed your policy, you could be paying much more than you need to.
#8 – Travelers: 8.5% Increase
At number 8, Travelers saw an 8.5% increase in premiums over the past year, bringing their six-year increase to 48.2%. The good news? Travelers has been working to lower their home insurance rates in 2025, so you might find better deals in the upcoming months.
#7 – Allstate: 8.5% Increase
Tied with Travelers at number 7, Allstate also raised rates by 8.5% last year. Allstate’s rates have increased by 43.3% over the past six years, which is a significant jump. If you’re with Allstate, it may be worth checking out other carriers.
#6 – Nationwide: 10.2% Increase
Nationwide comes in at number 6, with a 10.2% increase last year. Over the last six years, Nationwide’s rates have gone up by 57.6%. Nationwide has been trying to stabilize their rates, but higher claims costs are still impacting their premiums.
#5 – State Farm: 10.5% Increase
State Farm took number 5 with a 10.5% increase in the last 12 months, and a six-year total increase of 24.1%. While this might seem like a big jump, State Farm’s lower six-year average may signal deeper issues—they’ve faced substantial losses from disasters like the California wildfires, causing them to non-renew policies in areas with high risks.
#4 – Farmers: 11.8% Increase
Farmers saw a 11.8% rate hike last year, and their six-year increase is a staggering 65.9%. Rising claims costs have forced Farmers to continually adjust their rates. If you’re with Farmers, it may be time to shop around to avoid overpaying.
#3 – Progressive: 13.5% Increase
At number 3, Progressive raised rates by 13.5% last year. Even more shocking, their six-year increase is 87.8%—an eye-watering rise in premiums. Progressive has been struggling with its reliance on partner carriers like Homesite and QBE, leaving many customers frustrated with claims service.
#2 – Liberty Mutual: 14.5% Increase
Liberty Mutual comes in at number 2 with a 14.5% increase last year. Their six-year increase is 61.5%, showing that their rates have risen significantly. Customers have also reported frustration with lack of competitive pricing at Liberty Mutual, especially compared to independent agencies that can shop across multiple carriers.
#1 – American Family: 16.5% Increase
And the worst increase goes to American Family with a 16.5% rate hike in the past 12 months, and a 66% increase over the last six years. This has left many policyholders in a tough spot, as American Family struggles with profitability due to rising claims costs. Expect them to continue raising rates in the coming years.
What You Can Do About It
If your provider is on this list and you’re feeling the impact of rising rates, don’t wait! My team at Trailstone Insurance can shop your insurance with over 40 companies to find you the best rates and coverage available.
Whether you’re facing a rate hike or just want to make sure you’re not overpaying, we’re here to help you save money and get better coverage.
Final Thoughts
If your insurance provider is one of the companies on this list, it may be time to review your policy and shop around. At Trailstone Insurance, we’re committed to finding you the best deal and better coverage.
Click the link below or reach out today to get a free quote. Let’s make sure you’re not overpaying for your homeowners insurance.
Thanks for watching, and I’ll see you in the next video!