Consumer guide for households in Tempe, Arizona.

What’s Changing in 2025?

Home insurance: Phoenix-metro averages climbed to $3,150 / yr for a typical $300 k dwelling—Tempe policies hover in the $2,600-$3,100 range.
Auto insurance: Arizona drivers pay about $2,769 / yr for full coverage, but Phoenix-area motorists spend roughly 18 % more.
Rate trajectory: After a 16.5 % nationwide jump in 2024, insurers project a smaller 7.5 % hike for 2025. PR Newswire

Why Are Tempe Rates Rising Faster Than Inflation?

Extreme-heat claims: HVAC failures and roof damage from record 118 °F heat waves drive up homeowner losses.
Auto repair inflation: Parts & labor costs up 30 % since 2022; insurers raise collision premiums to keep pace.
Litigation pressure: Higher bodily-injury verdicts across Arizona push liability portions of both policies higher.

Who Pays More—and Who Can Still Save?

Roof age over 15 yrs → +20 % premium on many Tempe home policies.
Commutes on US-60 during peak hours see higher telematics scores—and discounts—than I-10 corridor drivers.
Good-credit households in Arizona pay up to 40 % less on auto compared with poor-credit peers.

Where to Look for Hidden Discounts (Beyond Bundling)

Smart-home devices: Water-leak sensors or monitored alarms can shave 5-10 % off home premiums.
Usage-based auto (UBI): Many Arizona drivers save 10-25 % with plug-in or app trackers if mileage is under 8 k mi/yr.
Roof or solar upgrades: Insurers often give credits for fire-resistant shingles or FORTIFIED roof standards.

When Should You Shop Around?

Every renewal cycle—loyalty can backfire because some carriers price-optimize long-time customers.
Life changes: Marriage, new teen driver, roof replacement, or a credit-score jump are each triggers to requote.
At least 30 days before expiry so new carriers can order CLUE & MVR reports without rush surcharges.

How to Keep Coverage Affordable—Without Cutting Corners

Bump deductibles smartly: Raising home from $1 k → $2.5 k can cut 6-8 % while keeping disaster costs bearable.
Layer umbrellas: A $1 M umbrella often costs $200-$250/yr and can offset higher auto BI limits.
Split or bundle? Bundling still knocks up to 25 % off combined premiums—but only if both policies stay competitively priced. U.S. News

Key Take-Aways for Tempe Households

Expect single-digit home hikes and high-single-digit auto hikes in late-2025 renewals.
Preventive upgrades & telematics now rival bundling as the biggest discount levers.
Shop early, compare at least three carriers, and watch for loyalty-penalty pricing.

Sources

Need a personalized rate check? Get a free bundle review from Inszone’s Tempe Personal-Lines team before your next renewal.

Brenda Luna

Senior Personal Lines Insurance Specialist

Brenda Luna is a Senior Personal Lines Insurance Specialist at Inszone Insurance Services, joining the company in December 2020 after the merger with Full Cycle Insurance. She has over seven years of experience in the insurance industry, specializing in personal lines. Brenda works closely with individuals and families to provide tailored solutions for auto, home, and renters insurance, helping protect what matters most.

Brenda is passionate about delivering exceptional customer service and offering personalized guidance. Her deep industry knowledge and dedication to understanding each client’s unique needs allow her to provide peace of mind through comprehensive coverage.

In her free time, Brenda enjoys spending quality time with her family. As a proud mother, she values balancing work and home life, which gives her a strong perspective on helping others protect their loved ones and assets.

[email protected]

480-755-5296

Is Your Tempe Home-and-Auto Insurance Bundle Still the Best Deal in 2025?