Finding the Best Car and Home Insurance in 2025

Like so many things, the price of home and auto insurance has been going up.

The national average cost of car insurance shot up 26% in 2024¹ from the year before, reports Bankrate.com. Homeowners insurance rose an average of 20% between 2021 and 2023 and is expected to rise another 6% in 2024, according to Insurify², an insurance comparison shopping site.

It may be tempting to reduce your coverage to save money. But not having enough insurance can be financially devastating after an accident or natural disaster. A better alternative is to shop for auto and homeowners insurance to make sure you get the best deal possible. In fact, some insurers offer discounts specifically for teachers.

The Insurance Needs of Educators

Standard insurance policies may not be enough to fully protect educators. For example, teachers may need additional professional liability insurance to financially protect them if they’re involved in a lawsuit for an action they’ve taken on the job.

If you’re an educator, it’s a good idea to review your liability coverage and shop around for insurance regularly, and a good place to start is with car and homeowners insurance.

Benefits of Union Discounts

Begin your auto and home insurance shopping by checking for deals that may be available through an agreement between an insurer and your teachers’ union. The NEA Member Benefits Auto & Home Insurance Program, for example, is in cooperation with Travelers and members could save an average of $611* on auto insurance through this program. Coverage is available to NEA members and their family members living in the same household.

You may also qualify for an additional discount if the young driver in your family gets good grades or if you buy more than one type of policy from Travelers.

Auto Coverage Options

Nearly every state requires a minimum liability coverage for bodily injury and property damage.

Bodily injury coverage pays the medical bills and lost wages of the other driver or their passengers injured in an accident in which you’re found liable. Property coverage pays for the repairs to the other driver’s vehicle as well as any fences, buildings, signs or other property damaged in the accident.

State requirements vary but tend to be modest. Many states mandate at least $25,000 for bodily injury to one person, $50,000 for injury to two or more people and $25,000 for property damage³. Given the high cost of medical care and repairs to vehicles and property, many experts advise a minimum of $100,000 for bodily injury for one person, $300,000 for injury to two or more people and $100,000 for property damage⁴. Better yet, if you have sizable assets you want to protect, consider $250,000 for bodily injury to one person, $500,000 for injuries to two or more people and $250,000 for property damage.

But liability insurance won’t cover damage to your vehicle in an accident. For that, you’ll need collision coverage that will pay to repair or replace your vehicle no matter who’s at fault. Coverages could also be available for damages caused by theft, vandalism, fire, natural disasters and other events unrelated to a collisions. Lenders and leasing companies often require drivers to have coverage for collision and other than collision scenarios.

Note: Some states require uninsured or underinsured motorist coverage in case you’re injured or your car is damaged by someone with little or no insurance. This is an option drivers should consider even if it’s not required by their state.

Learn more about the different types of auto coverage in “Understand Your Auto Insurance Policy.”

Homeowners Coverage Options

A homeowners policy combines property damage and liability coverage if your house needs repairs or rebuilding after a covered loss, your belongings are stolen or damaged or someone is injured on your property or by your pet.

Homeowners should buy enough insurance to cover the replacement cost of rebuilding their house. This is often less than the market value of your house, which includes the price of the land⁵. Your insurer can help you estimate your home’s replacement cost.

Of course, over time, the rising costs of labor and building materials could increase the cost of rebuilding your home. If your policy doesn’t include an inflation guard, consider adding it. This will automatically increase your dwelling’s coverage each year to keep up with inflation.

Be aware that the amount of coverage for your personal property typically equals 50% to 70% of the amount of insurance on your home⁶. So, if your dwelling is insured for $300,000, your belongings may have $150,000 to $210,000 of coverage. But expensive or rare items such as jewelry, cameras, antiques or artwork often have lower insurance limits. You can purchase supplemental coverage to get these items fully insured.

Note: Damage from flooding is typically not covered under a homeowners policy and can be expensive. An inch of water, for example, can cause more than $25,000 in damage to your house according to the Federal Emergency Management Agency⁷.

To see if your home is in an area at high risk of flooding, go to www.floodsmart.gov. Additionally, you can get a quote through the NEA Auto and Home Insurance Program through InsuraMatch, a wholly owned agency of Travelers, which offers Neptune Flood Insurance.

Are you financially prepared to buy a house in today’s competitive marketplace? Read “What It Takes to Buy a Home” to find out.

Cost and Affordability

In 2024, the average annual cost of full-coverage car insurance rose to $2,543, according to Bankrate⁸. And the yearly premium for $300,000 in dwelling coverage averaged $2,285⁹.

The rising costs of labor and materials are only partly to blame for rising premiums. Increases in auto thefts, accidents and natural disasters have been pushing up premiums, too.

And there are many individual factors that influence premiums. With auto insurance, for example, your age, location, driving record, annual mileage and type of vehicle can affect your premium. With home insurance, premiums can be determined by your claims history, local crime rate, the age and square footage of the house and its distance to a fire hydrant or fire station.

Plus, some insurers use a credit-based insurance score as a factor of home and auto premiums. The insurance score, which uses criteria similar to regular credit scores, gauges the likelihood you’ll file a claim. And a low score means a higher premium.

Customer Service and Reputation

Sure, premiums are key, but it’s also important to find an insurance company with excellent customer service and claims handling.

Check with your state insurance department for information on insurers that are licensed in your state. Many states, for example, provide a “complaint ratio” for each insurer, so you can see if one company gets a higher level of complaints than others.

You’ll also want an insurer that is financially healthy so it has the means to pay claims. Rating companies grade insurers on their financial strength. You can look up Standard & Poor’s rating of insurance companies for free at Insure.com.

It’s important to read online reviews about insurers and seek recommendations from family, friends, and colleagues.

NEA Member Benefits has partnered with Travelers insurance to provide auto and homeowners insurance to its educators. Explore your coverage today!

Maximize Savings

You can further reduce insurance costs with these steps:

Bundle your insurance. Typically, you can receive a discount if you buy your auto and home or renters insurance from the same company.
Raise your deductible (the amount you must pay before insurance kicks in) to lower your premium. Just make sure you can afford the higher out-of-pocket cost.
Consider dropping collision or comprehensive coverage if you have an old vehicle that’s worth only a few thousand dollars.
Update your insurance if your situation changes. For example, you may drop a young adult from your policy once they’ve moved away and no longer drive the family car or after they’ve purchased an auto that’s registered in their name.
Let the insurer know if you’ve added features that could reduce your chances of filing a claim. For example, you may get a reduced premium for installing a security system to your home or an anti-theft device to your vehicle.

With insurance premiums expected to continue to climb, you can take other steps to prepare for higher costs:

Start budgeting for higher premiums on policies at renewal.
With most insurers using credit-based insurance scores when determining premiums, you should maintain a strong credit history by paying bills on time and keeping any credit card debt low.
Establish an emergency fund with three to six months’ worth of living expenses. If you’ve raised your deductible to save money, an emergency fund can help pay the deductible if you have an unexpected claim. Plus, having emergency savings for minor repairs to your vehicle or home will reduce your need to file small claims, which can trigger higher premiums later.

Protect what matters most with trusted and affordable auto and home insurance options tailored for NEA member.

Explore your coverage today!

Sources:
¹ https://www.bankrate.com/f/102997/x/872bb818a5/true-cost-of-auto-insurance-press-release.pdf
² https://insurify.com/homeowners-insurance/report/home-insurance-price-projections/
³ https://www.bankrate.com/insurance/car/minimum-coverage-requirements/
⁴ https://www.kiplinger.com/article/insurance/t004-c000-s001-liability-coverage-in-case-you-re-at-fault.html#:~:text=At-minimum%2C-you-should-carry,if-you-have-significant-assets
⁵ https://www.policygenius.com/homeowners-insurance/replacement-cost-vs-market-value/
⁶ https://www.iii.org/article/insurance-for-your-house-and-personal-possessions
⁷ https://www.fema.gov/fact-sheet/everyone-needs-flood-insurance#:~:text=Just-one-inch-of-water,contents-from-a-flood-event
⁸ https://www.bankrate.com/f/102997/x/872bb818a5/true-cost-of-auto-insurance-press-release.pdf
⁹ https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/

* Average savings is based on new auto policyholders countrywide who reported savings to the Travelers Call Center in 2024. Individual savings may vary. Savings are not guaranteed.

Coverages, discounts, special program rates or savings, billing options, and other features are subject to availability and individual eligibility. Not all products, features or coverages available in all areas or states. Other terms, conditions or exclusions may apply.

Insurance is underwritten by The Travelers Indemnity Company or one of its property casualty aﬃliates, One Tower Square, Hartford, CT 06183. In TX: Automobile insurance is offered through Travelers Texas MGA, Inc. and underwritten by Consumers County Mutual Insurance Company (CCM). CCM is not a Travelers Company. Home insurance is underwritten by Travelers Personal Insurance Company. In CA: Automobile insurance is underwritten by Travelers Commercial Insurance Company, Certificate of Authority #6519, State of Domicile: CT; or Travelers Property Casualty Insurance Company, Certificate of Authority #6521, State of Domicile: CT. Homeowners insurance is underwritten by The Standard Fire Insurance Company, Certificate of Authority #3545, State of Domicile: CT. In WA: Automobile insurance is underwritten by The Standard Fire Insurance Company. Homeowners insurance is underwritten by Travelers Personal Insurance Company. All underwriting companies in CA and WA listed above are located at One Tower Square, Hartford, CT 06183.