Personal insurance costs are still increasing, but pricing appears to be moderating as the market regains profitability after years of rate hikes.
Here are trends to watch across the major personal insurance coverage areas:
Homeowners insurance
Average premiums are estimated to climb between 8 to 15 percent for homeowners in catastrophe-prone areas and ease slightly for those across the rest of the country – as natural disasters, increased building costs, and risk mitigation measures continue to impact both pricing and coverage availability.
- Natural disasters: Even though no hurricanes made landfall in the U.S. in 2025, the country still experienced 23 billion-dollar weather events costing a total of $115 billion, according to data from the research nonprofit Climate Central. Many of the events were severe storms or tornados in the Midwest region.
- Building costs: A recent report from the Insurance Information Institute found the cost to rebuild homes has jumped close to 30 percent in the past five years, largely because of challenges in the construction industry – including labor shortages, higher material costs, and disruptions in the supply chain.
- Risk mitigation: Homeowners can potentially reduce their premiums by making safety improvements to their homes, such as installing storm shutters, leak detection systems, impact-resistant roofs, and alarm systems.
Auto insurance
Nationally, auto insurance costs dropped 6 percent in 2025, but pricing is expected to rise slightly this year.
In Ohio, costs for full-coverage auto insurance are some of the lowest in the country, according to data from online insurance provider Insurify. By the end of the year, the average auto insurance premium in Ohio is expected to be less than $1,400 – while costs in more expensive states, such as Florida, are expected to reach more than $2,700.
A 2025 report from LexisNexis points to several factors driving fluctuating auto insurance prices:
- Two years of large rate increases improved insurance company profitability, which has led to some price moderation.
- In 2024, 45 percent of customers shopped their car insurance – an all-time high.
- Driving violations jumped 17 percent in 2024, and traffic fatalities are up 11 percent compared to pre-COVID-19 years.
- Claims costs – both for auto parts and medical care – have stabilized, but nearly 30 percent of collision claims are resulting in total losses.
- More claimants are turning to attorneys, and they’re reporting better customer service experiences with those attorneys compared with insurance company adjusters.
Umbrella insurance
Securing umbrella coverage – which provides additional liability protection – continues to be a challenge, especially for high-net-worth families who are seeking higher limits.
As liability claims costs continue to increase, some insurance companies are becoming more selective in the risks they’re willing to accept, lowering the amount of umbrella coverage they’re willing to offer, and raising prices.
Elements most affecting cost include a family’s loss history, their total net worth, and the limits of coverage they request.
A 2026 report from the Wall Street Journal estimated the current average premium for $1 million in umbrella coverage is close to $500, and the average premium for $5 million in coverage is nearly $800.
Personal cyber insurance
Cyberattacks against individuals and families continue to rise, but few people are purchasing coverage to protect themselves from risks like identity theft, fraud, extortion, and even cyberbullying.
A report from the Insurance Information Institute and insurance company Hartford Steam Boiler found the average payout for a home cyber claim is more than $10,000. But while coverage is often available for less than $100, uptake has been slow.
The Personal Risk team at Schauer Group can’t control pricing trends, but they can work with you to reduce risks to your personal portfolio of assets and help you find the right insurance coverages to protect your family. Please reach out if you’d like additional guidance from a Personal Risk advisor.
Sources
- Triple-I: Homeowners Insurance Market Shows Early Signs of Stabilization as Post-COVID Inflation Pressures Level-Set Into ‘New Normal’ For Risk Pricing | Insurance Information Institute
- U.S. Billion-Dollar Weather and Climate Disasters | Climate Central
- Industry Trends to Exploit for 2026: Part Two | Insurance Journal
- Verdicts, Value & Volatility: Umbrella Market Under Pressure | Ohio Insurance Agents
- What Is Umbrella Insurance? | The Wall Street Journal
- Car Insurance Prices Tumbled 6% in 2025 — Insurify Projects an Affordability Gap Between States in 2026 | Insurify
- LexisNexis® U.S. Auto Insurance Trends Report | LexisNexis Risk Solutions
- Addressing the Personal Cyber Insurance Gap | Insurance Information Institute
