Why Home and Auto Insurance Costs Are Rising in 2025

A recent report from Insurify outlines several reasons why insurance premiums are going up across the country and here in Oregon & Washington. Here’s what homeowners and drivers need to know:

🏠 Home Insurance Increases

• Home insurance premiums are expected to rise 8% nationally, reaching about $3,520 for a $400,000 home by the end of 2025.
• New tariffs on building materials (especially from countries like China, Canada, and Mexico) may further raise costs, making home repairs more expensive and pushing premiums even higher.
• States like Louisiana, Iowa, and Minnesota could see double-digit increases, largely due to recent severe weather events.
• For example, in Iowa, insurers paid out $122 in claims for every $100 in premiums, signaling significant financial strain.
• Florida still holds the title for the highest home insurance rates in the country, with an expected 9% increase this year.

🚗 Auto Insurance Impact

• Car insurance premiums may also rise by 8%, going from $2,313 to $2,502 for full coverage on average.
• A 25% tariff on imported vehicles and auto parts is driving up repair costs, since many parts are sourced internationally.
• States like Maryland and New York may face even steeper auto insurance hikes.

🌪️ Weather and Climate Factors

• Natural disasters like wildfires, floods, and tornadoes are becoming more common and costly, even outside traditionally high-risk areas.
• These events are forcing insurers to raise rates to keep up with increased claims and repair costs.
• Nationwide, home insurance premiums have gone up 24% in the past three years, and 95% of homeowners have seen their rates increase.

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What This Means for You

If you’re a homeowner or driver, expect higher insurance costs in 2025. Reviewing your policy and talking with your agent at Oliver Insurance can help you find savings opportunities or ensure you’re getting the coverage you need at a fair rate.

Let us know if you’d like to schedule a policy review—we’re here to help! Check out this article for more info about tariffs and their impact on our insurance industry. https://www.insurancebusinessmag.com/us/news/property/tariffs-threaten-to-push-insurance-costs-higher-for-us-households-531425.aspx?hsmemberId=1023933&tu=C2443B66-2A35-4180-97FD-678D3F9A32B8&utm_campaign=&utm_medium=20250408&_hsenc=p2ANqtz-8jKi6cfKtgw9pMeShUTjhawB3r8XFIZiNMxats9-ZXnpmhk-yGvXlMKqhfmujMO5kzIPX7ONleaEf-aQdDjL3lrt2K27V-pKsiRe-fT3c6CCenzgU&_hsmi=355741080&utm_content=C2443B66-2A35-4180-97FD-678D3F9A32B8&utm_source=

Shopping for insurance can be confusing, with so many options and questions to consider. You may wonder, “What type of coverage is right for me?” or “Which insurance company best fits my needs?” Understanding the different types of insurance providers—independent agents, direct writers, and captive agents—can help you make the best decision for you and your family.

As a Trusted Choice® independent insurance agency in Canby, OR, we work with multiple top-rated insurance carriers to provide customized coverage tailored to your unique needs. Unlike direct writers who offer limited choices or captive agents who only represent one company, we have the flexibility to compare multiple policies, ensuring you get the best protection at the best value.

Our team understands the local risks and coverage needs of Oregon and Washington residents and businesses. We take the time to get to know you, helping you navigate policy options and adjust coverage as your needs change. With expert guidance and personalized service, we’re here to protect what matters most—your home, auto, business, and more.

To learn more about the different types of insurance agencies and how they operate, check out this article https://www.cinfin.com/cincinnati-insurance-resources/independent-agents/buying-insurance-agency-channels.

Contact us today to see how working with an independent agent can give you peace of mind and confidence in your coverage choices.