Commercial insurance rates in the U.S. saw a slight moderation in the second quarter of 2025, while personal lines rates, driven by auto and high-value homes, accelerated, according to new data from Novatae Risk Group and MarketScout.
Commercial lines rates increased by an average of 2.8% in the second quarter, down slightly from the 3% increase recorded in the first quarter.
“Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter,” Novatae Risk Group CEO Richard Kerr said in a press release. “We are also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”
The slideshow above summarizes second quarter 2025 commercial insurance rate increases, according to fresh reporting from Novatae Risk Group and MarketScout.
In the personal lines sector, rates climbed by an average of 4.6%. Personal auto rates trended upward, increasing 5.7% in the second quarter compared to 4.3% in the first. While most homeowners experienced smaller increases than in Q1, high-value homes with Coverage A values over $1 million saw rates jump by 6.7%.
With the start of hurricane season, Kerr advised agents to prepare clients for continued pressure on homeowners’ rates in vulnerable regions.
“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” Kerr said. “Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favorable during those months.”
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