Worried About Insurance Rates? Your Loyalty Might Be Costing You

Nearly half of insured Americans report stress over premium costs, yet very few are switching carriers or actively shopping for better rates, according to a new NerdWallet survey [1]. The survey found that 49% of Americans with auto insurance and 46% with home insurance say they are stressed about their premiums [1]. Despite that anxiety, only 12% of auto insurance customers and 8% of homeowners insurance customers switched companies in the past 12 months [1]. About 1 in 5 Americans with auto insurance (22%) and home insurance (19%) say they shopped around for a new insurer during that period [1]. Among those who did shop, nearly 80% considered only one or two insurers, according to JD Power’s Q1 2026 Insurance Shopping Loyalty Indicator & Shopping Trends Report [1]. Emily Rogan, senior program officer at consumer advocacy group United Policyholders, noted the transactional nature of the product. “The interesting thing is that you're buying one year of coverage over and over and over again,” Rogan said [1]. She added, “The new normal is that people have to pay more attention to their insurance” [1]. Scott Fox, an independent insurance broker in California, said an annual policy review can help consumers ensure they have adequate coverage without overpaying [1]. Fox also pointed to a recent market dynamic in which some carriers, particularly in states like California, restricted new business. “If a preferred carrier didn't want a particular risk, they would just decline to quote it rather than give someone a quote that reflected the risk,” Fox said [1]. The insurance industry includes a range of large mutual and stock companies that write personal lines. Mutual of Omaha, founded in 1909, offers Medicare supplement, life, and long-term care coverage alongside group products [5]. Mercury General, founded in 1961 and based in Los Angeles, focuses on personal auto and homeowners insurance and operates through more than 8,000 independent agents across 11 states [6]. Sentry Insurance, a mutual company headquartered in Wisconsin, specializes in business insurance and held assets of more than $29.8 billion as of December 31, 2025 [7]. For consumers unable to switch carriers, the survey highlighted several cost-saving tactics. Bundling home and auto policies can yield discounts of up to 40%, depending on the insurer [1]. Fox noted that some teachers overpay by 20% because they are unaware of educator-specific discounts [1]. Raising a deductible was also cited as one of the quickest ways to lower premiums, provided the policyholder has sufficient savings to cover the higher out-of-pocket cost [1].