Insurance rates continue to climb in Q2’25, according to Novatae Risk Group

Insurance rates across the US continued their upward trend in the second quarter of 2025, according to new data released by MarketScout, a national insurance distribution and underwriting company, in collaboration with Novatae Risk Group, a specialty insurance brokerage and risk advisory firm.

For commercial insurance, average rates rose by 2.8% during the quarter. Although this marks a continued increase, it represents a slight slowdown from the 3% hike recorded in the first quarter of the year.

“Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter,” said Richard Kerr, CEO of Novatae Risk Group.

“We are also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”

In personal insurance, the overall rate increase was more pronounced, with average premiums rising by 4.6% in Q2. Homeowners generally experienced smaller increases than in the previous quarter.

However, high-value homes—those with Coverage A values exceeding $1 million—faced significantly higher adjustments, with average increases reaching 6.7%. Personal auto insurance also continued to trend upward, with rates increasing by 5.7% in the second quarter, up from a 4.3% rise in the first.

As hurricane season begins, Kerr emphasised that homeowners in coastal regions should expect further increases. “We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down.

“Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favourable during those months.”

For agents and policyholders, timing and planning remain important as insurers adjust pricing based on shifting risks and seasonal factors.

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