Home and auto rates are finally leveling off. That doesn’t mean policyholders feel any safer. VIU by HUB’s Insurance Experience Survey found that 67% of policyholders say an unexpected $1,000 home or auto expense would be a struggle, 41% haven’t touched their coverage in over a year, and 77% would buy through a brand they already trust if it connected them with a licensed professional.
We asked Travis Hodges, Managing Director at VIU by HUB, where rate relief actually reaches the customer in 2027, where it stalls, and what agents should be doing about it.
InsNerds: Rates are leveling off as carriers catch up to claims costs and reinsurance gets cheaper. How much of that relief actually reaches the policyholder in 2027, and where does it stall?
Hodges: As insurance rate increases slow or level off, relief for policyholders varies. That relief is showing up fastest in auto. We saw an intense rise of roughly 46% from 2022 to 2024, but rates fell about 6% in 2025. As we close out 2026, most companies expect only flat to modest increases for policyholders renewing like-for-like policies.
Homeowners insurance is following a similar, but more gradual, trajectory. We saw rate increases ease last year to just 6%, with low-single-digit to modest increases expected again this year. However, whether homeowners feel relief when renewing comparable coverage depends on where they live. Those in coastal, hurricane-prone markets might see only flat to modest increases at renewal due to cheaper reinsurance and fewer losses from hurricanes. But that relief stalls in states facing wildfire and severe convective storm risks, such as California, Nebraska and Colorado. In these regions, losses remain high and double-digit increases are expected to continue.
These differences can be confusing for policyholders, so it makes the need for comparison shopping and clear guidance increasingly important.
InsNerds: You say that in the hardest-hit areas the question isn’t price, it’s whether coverage exists at all. Which markets are you most worried about, and what does a homeowner there realistically do?
Hodges: The same states that are continuing to see double-digit premium increases are the same states where coverage availability is a top concern: California, Nebraska, Colorado and communities across the broader Great Plains.
In these states especially, homeowners should work closely with a licensed insurance broker who can help them explore which carriers or specialty insurers cover higher-risk properties. Some states also offer Fair Access to Insurance Requirements (FAIR) plans as a last resort for homeowners who are unable to secure coverage through the private market, and an insurance broker can help walk them through those options.
InsNerds: Auto is getting relief while wildfire and severe convective storm states still see double-digit homeowners increases. Is that gap closing next year or getting wider?
Hodges: The gap isn’t necessarily getting wider, but where it’s closing varies. The local picture, not the national average, increasingly determines what a household pays and how easily it can find coverage at all. Coastal states like Florida and the Carolinas, which were facing real challenges just a couple of years ago, are seeing markets soften and policyholders find some relief across both home and auto. But most regions prone to wildfire and severe convective storm risks will continue to face challenges with pricing and coverage availability for homeowners insurance, keeping the gap in place.
InsNerds: 67% of policyholders say a surprise $1,000 home or auto expense would be a struggle. What should that number tell agents about how they set deductibles and talk about them?
Hodges: It’s important to educate policyholders on their options, particularly as deductibles become a more common lever for managing rising premiums. Raising a deductible can lower premiums, but it means higher out-of-pocket costs if a loss occurs and a claim is filed. Our VIU by HUB Insurance Experience Survey shows that for a large number of policyholders, a higher, fixed monthly premium might be a better option – but they really need guidance to determine which is best.
Licensed insurance advisors should work with clients to evaluate the expenses they would be responsible for after an unexpected home or auto incident. That means reviewing whether coverage limits reflect today’s repair and replacement costs and identifying any gaps in coverage. These conversations help homeowners feel more comfortable with their coverage and more financially prepared.
InsNerds: 41% haven’t touched their coverage in over a year, and 65% say switching isn’t worth the effort. Is that inertia a problem for the customer, or just a sign the industry has made shopping too painful?
Hodges: It’s kind of a two-part answer. For one, as the insurance industry has become more complex, customers need more education on managing their policies, which is on us as an industry to provide. Many may assume a review means shopping every carrier from scratch, so they put it off. But it’s simpler than that. It’s checking in with your broker to learn whether your limits still match what it costs to rebuild your home or replace your car today, given rising material and labor costs.
Second, in some tighter markets policyholders have felt stuck with the coverage they have; options narrowed, so shopping felt pointless. As those markets loosen, it’s easier to find more options.
But the inertia also stems from how the insurance industry currently operates. The industry’s incentives are still built around the sale, not what happens after it. Once a policy binds, commission structures reward writing the next piece of business, not staying close to the customer you just served. Service becomes a cost line to control rather than something worth investing in.
There’s a data problem underneath that, too. A customer’s home, auto and life coverage often sits across three different systems that don’t talk to each other, so no single person has the full picture of that household. When nobody sees the whole customer, nobody feels responsible for checking in on them.
Our survey also found that 56% hadn’t heard from their provider in over a year, but 88% would value a provider that proactively flags when their coverage no longer fits their life. That’s a tell-tale sign that the industry needs to reach out more, not wait for people to come around.
InsNerds: 77% would buy through a company they already trust, like a bank, lender or car manufacturer, if it connected them with a licensed pro. What does that mean for the independent agent who doesn’t have that kind of brand relationship?
Hodges: The broader takeaway is that people are looking for more convenient ways to find insurance and accessing it through trusted brands is one way to do that. But, the key here is the “if it connected them with a licensed professional.” While independent agents may not have those same brand relationships, people still want to talk to a real person when making important decisions, and independent agents can offer that same value.
InsNerds: In a softening market, what’s the one conversation an agent should be having with clients before renewal that most aren’t having?
Hodges: “Have you checked whether you have the right coverage for your current needs?” Big lifestyle changes can happen in a matter of months, and trust deepens when an insurance advisor demonstrates this level of proactive care. That trust earns loyalty and repeat business.
Our VIU by HUB Insurance Experience Survey told us customers want better protection and expect their providers to flag coverage gaps before they become a problem – or, flag if they’re paying more when they don’t need to be. So before renewal, licensed insurance advisors should work with clients to review changes in their lives, make sure their coverage reflects current repair and replacement costs, identify any gaps, and adjust policies if needed. Ultimately, customers want a trusted professional who can help them make informed decisions about comprehensive coverage, not just generate an auto renewal of the same policy.
InsNerds: What’s the biggest thing you expect forecasters to get wrong about personal lines in 2027?
Hodges: I think one item that will be different that most people predict is the actual pace of change that is coming to our industry. Respective AI tools are already re-shaping how consumers search, shop and engage with insurance carriers. AI tools and respective firms who embrace this technology will be able to provide an additional level of service for prospective and future clients.