American households are investing in protection, with a typical family of four spending $2,026* a month on average to stay covered. Between costs for health, dental, home, auto, and pet insurance, many may be feeling squeezed. More than one third of Americans say they’re feeling the impact of their expenses adding up, according to Empower research.

While some parts of the safety net are seeing price breaks — health insurance premiums fell 2.3% between May 2019 and May 2025 — others will require policyholders to make changes to see savings.¹

With 43% of Americans set on figuring out how to save more money this year, experts predict 2025 is likely to go down as a major tipping point for policy shopping and switching across industries.²

The going rates

While nationwide averages can be a useful baseline, costs for different types of insurance vary significantly by location and personal circumstances. For instance, older pets typically cost more to insure than younger pets; those with a clean driving record will generally be offered lower premiums; and homes in areas subject to flooding could see higher home insurance rates.

Insurance inflation

Amid fluctuating inflation figures, insurance premiums have yet to yield much relief for consumers. Data from the Bureau of Labor Statistics Consumer Price Index (CPI) reveals rising auto insurance costs are a significant contributor to the overall inflation rate. Motor vehicle insurance has increased 57.5% since May 2019 — more than double the increase for all items in the index.^9,10 Tenants and household insurance — or renters insurance — increased 7.8% during the same period, while health insurance fell 2.3%.¹¹

People may be paying a premium for car insurance — but that hasn’t stopped them from hunting for a deal. Americans are seeking to change their insurance coverage more frequently than in the past, after a surge in premiums that’s squeezed household budgets. The most recent data shows auto insurance shopping was up 14.1% in Q1, up 1.3 points year-over-year.¹²

Rising under the radar

One of the most significant impacts on homeowners’ wallets isn’t showing up in the government’s primary inflation metric: homeowners insurance. The CPI only measures tenants and household insurance which has seen much lower rates of increase over the past few years. Homeowners insurance costs are projected to rise 8% by the end of 2025, following a 20% increase in the last two years.¹³ Meanwhile, renters insurance increased just 2.9% year-over-year as of May 2025, according to CPI data.¹⁴ Both are outpacing the annual inflation rate, which sat at 2.4% at the end of May.¹⁵ Still, paying for peace of mind can be priceless: Empower research found that seven in 10 people (68%) are willing to pay more for services that help them achieve financial security.