MALVERN, PA — Homeowners insurance costs have risen substantially faster than personal auto coverage relative to household income since 2020, according to a new Insurance Information Institute index that tracks affordability, market conditions and underlying insurance risks across the U.S.
The Insurance Affordability Index estimates homeowners insurance represented 2.4% of median household income nationally in 2025, a 24% increase from 2020. Personal auto insurance accounted for 1.7%, up 9% over the same period.
Triple-I developed the interactive tool using the Insurance Research Council’s affordability methodology, its own underwriting expertise and the latest available data. It provides state-level comparisons through 2025.
The national figures mask differences among states stemming from catastrophe exposure, claims costs, repair and replacement expenses, litigation and insurance market conditions, according to Triple-I.
“Insurance costs vary significantly across America, and for good reason: no two states carry the same catastrophe risk, legal environment or economic pressures,” Triple-I CEO Sean Kevelighan said.
The index also examines insurance availability, an issue that can diverge from affordability. Its market indicators include residual-market share, excess and surplus market share and regulatory rate-approval times, while its homeowners analysis identifies states facing the greatest availability pressure.
Triple-I also tracks changes in home rebuilding and vehicle repair costs, noting that many components have increased faster than overall inflation since 2020. Insurance costs are presented alongside housing, food and transportation expenses to show their place within household budgets.
“Insurance premiums are shaped by the underlying cost of claims,” said Pat Schmid, Triple-I’s chief insurance officer and president of the Insurance Research Council. “Inflation and rising prices to repair and replace homes and vehicles are significant factors across the country.”
Schmid said catastrophe exposure and what Triple-I characterizes as legal system abuse can add further pressure to premiums. He also said insurer participation can shift when rates do not reflect underlying costs, potentially increasing reliance on residual markets.
The interactive U.S. map allows users to switch between homeowners and personal auto coverage. States are ranked by average premium as a share of median household income and divided into five affordability tiers.
Individual state pages provide five-year and two-year premium-to-income trends and comparisons with national benchmarks. The tool also measures homeowners insurance costs relative to home values and auto premiums relative to vehicle values.
Additional state-level data cover catastrophe exposure, claim frequency and severity, repair costs, expenses and claims litigation. The index also identifies location-specific hazards, such as flooding, storm patterns and congested traffic corridors, and provides risk-mitigation steps for consumers.
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