NerdWallet's Smart Money Podcast

Episode: Insurance in 2026—Best Auto, Home, Life, and Pet Insurance Picks & Credit Card Debt Wake-Up Call

Date: January 15, 2026
Hosts: Sean Pyles, CFP® (A), Elizabeth Ayoola (B)
Guests: Ana Helhoski (C), Erin El Issa (D), Kaz Weida (E)

Episode Overview

This episode delivers an in-depth look at insurance trends and practical advice for 2026. The discussion opens with a wake-up call on rising household debt (especially credit card debt), breaking down the drivers and strategies to manage it. The core of the episode focuses on major insurance categories—including auto, home, life, renters, and pet insurance—offering expert insights on how to save, make informed choices, and highlights NerdWallet’s 2026 “Best Of” insurance product picks.

Key Discussion Points & Insights

1. Household Debt in America—Credit Cards in Focus

Segment: [02:28 - 09:21]

• Credit Card Debt is Climbing:

  • As of September 2025, the average household with revolving credit card debt owes $11,413 ([02:28]).
  • Revolving credit card debt has risen by more than 4% in the past year.
  • More than half of respondents cite necessities (food, transportation) as causes; 37% cite shopping ([03:19]).
  • Attitude Shift: Nearly half of Americans now view carrying debt as "normal." One third expect to always have a balance ([03:55]).

• Normalization and Its Impact:

  • "Normalizing it may just dull the sting." – Erin El Issa ([03:55])
  • The comfort in “all being in it together” reduces urgency to pay off debt ([04:21]).

• Other Debt Types:

  • Student loan, auto, and mortgage debts are also rising, but not as sharply as credit card debt ([05:00]).

• Income vs. Expenses:

  • Median household income has slightly outpaced cost of living over five years, but for many, especially regarding housing and transportation, costs have outpaced income ([05:16]).
  • Individual realities vary: “Aggregate data can tell us things are looking good overall. While individual households can feel like they're drowning under rising costs and stagnant income.” – Erin El Issa ([05:54])

• Buy Now, Pay Later (BNPL):

  • Increased use due to low/no interest, but “when you start using it regularly… it’s easy to become overwhelmed.” ([06:06])

• Falling Back into Debt:

  • 17% who paid off credit card debt have relapsed ([06:26]).
  • Habit and intention matter; many opened cards "to pay off monthly" but didn't manage it.

• Strategies to Pay Down Debt:

  • No magic solution: “You have to earn more, spend less, or both… some use balance transfers or consolidation loans to lower interest, but you still need to pay it down.” ([07:31])
  • Even a small increase beyond minimum payments ($50-100/month) can cut years and thousands off repayment ([08:11]).
  • AI Tools: Only 11% of Americans use AI to help develop debt payoff plans, though growth is expected ([08:35]).

• Encouragement:

  • “Revolving credit card debt may be considered normal, but it doesn't have to be normal for you… Forgive yourself if you mess up and get right back to it. It really just takes consistency and time. I know I've done it.” – Erin El Issa ([09:03])

2. Insurance in 2026—What’s Changed & What to Do About It

Segment: [12:48 - 35:41]

a. Insurance Rates: Why They’ve Risen

[13:00 – 15:21]

• Drivers:
  • Inflation: Increases cost to replace/repair homes or cars.
  • Severe Weather: More frequent/extreme weather increases claims, driving up premiums.
  • Insurers Withdrawing: Some insurers are leaving risky markets, shrinking competition.
• "Auto insurance rates, 16% is the increase over the last year in some places…let's just hope for modest increases at this point." – Kaz Weida ([14:17])

b. Auto Insurance: Get the Right Coverage, Cut Costs Wisely

[15:21 – 19:40]

• Bare Minimum Coverage is Risky:
  • State minima often leave big coverage gaps (“not a financially comfortable place for most people to be” – Kaz Weida ([15:43])).
  • NerdTake: “You want enough liability coverage to protect your assets.” Figure your net worth and get at least that much coverage.
• How to Save:
  • Talk to your insurer about available discounts (good driver, bundling home & auto).
  • Consider but be wary of telematics (driving tracking)—can backfire if you’re an aggressive driver ([17:07]).
  • Shop around annually (loyalty often doesn’t pay), get multiple quotes ([18:13]).
• Rising Uninsured Motorists:
  • 1 in 7 drivers is uninsured, 1 in 6 underinsured ([19:40]).
  • Recommend checking if you have uninsured/underinsured motorist coverage.

c. Home Insurance: Trends and What Homeowners Can Do

[20:36 – 24:52]

• Premiums Up ~25% in Recent Years: Often double the rate of inflation.
• Major Drivers:
  • Insurers leaving markets after disasters = less competition, higher premiums.
  • Building material costs up 45% since 2019 ([21:10]).
  • Labor shortages from immigration enforcement, broader hiring crunch.
• Savings Strategies:
  • Raising deductibles is riskier; only do if you have the cash to cover ([23:09]).
  • Seek out discounts: security systems, impact-resistant roofing, upgraded plumbing/electrical, non-smoker status.
  • Avoid small claims if possible—they can cause large premium hikes (one wind damage claim = +9% premium) ([24:52]).
  • Credit Score: A higher score can lower your premium.

d. Other Insurance: Renters, Pet, and Life

[24:52 – 29:04]

• Renters Insurance:
  • Affordable (avg. $148/year), crucial to mitigate risk of losing all personal property.
• Pet Insurance:
  • Worth it, especially for young/healthy pets (“Get it before conditions arise, as most plans exclude pre-existing issues,” – Kaz Weida ([25:12])).
• Hosts’ Stories:
  • Sean and Kaz both bought pet insurance for peace of mind as pet health needs increase with age.
• Life Insurance:
  • Most people need more than they think.
  • “If your death would place a financial burden on anyone, you should have an individual life insurance policy…go investigate and explore that right now.” – Kaz Weida ([27:56])
  • Term life is sufficient—and much cheaper than most expect.

e. 2026 NerdWallet Best Of: Top Insurance Products

[29:11 – 33:41]

• How Winners Are Chosen:

  • Large initial pool, narrowed by wide availability and low complaint rates (per National Association of Insurance Commissioners).
  • Use average rates, benefits, ease of use, and comprehensiveness to judge.

• Winners by Category:

  • Best Budget-Friendly Auto Insurance: Geico [“Geico is pretty widely available…They offer a lot of discounts in comparison to other insurers.” – Kaz Weida ([31:32])]
  • Best Budget-Friendly Home Insurance: Travelers [“User-friendly website, easy claims, eco-friendly discounts.” ([32:03])]
  • Best Same-Day Term Life Insurance: Lemonade [“Issue coverage to qualified applicants basically in minutes online…millions dollars in coverage.” ([32:36])]
  • Best Comprehensive Pet Insurance: ASPCA [“Covers cats, dogs, horses, alternative therapies, 24/7 vet helpline.” ([33:04])]

f. Overall Insurance Philosophy for 2026

[33:51 – 35:02]

• Don’t focus solely on price.
  • “Insurance has value because it's designed to help you in a terrible situation…think about who can provide the best value in your situation, not just the cheapest rate.” – Kaz Weida ([33:51])
• NerdWallet’s Mission:
  • “Let us lend you a hand…our insurance team does that research and provides that information.” ([35:02])

Notable Quotes and Memorable Moments

• On Debt Normalization:
  "Normalizing it may just dull the sting. Other than that, I mean, it is pretty normal…" – Erin El Issa ([03:55])
• On Insurance Minimums:
  "Try not to drop your auto coverage down to minimums… you want enough liability coverage to protect your assets." – Kaz Weida ([15:43])
• On Insurance Value:
  "Insurance has value because it's designed to help you in a terrible situation." – Kaz Weida ([33:51])
• On Mindset:
  “Forgive yourself if you mess up and get right back to it. It really just takes consistency and time. I know I've done it.” – Erin El Issa ([09:03])
• On Pet Insurance Timing:
  "Getting on pet insurance when your pet is young, before they develop all those conditions can definitely make it more bang for your buck…" – Kaz Weida ([25:12])
• On Choosing Insurance:
  “…sometimes that's not always the insurer who has the cheapest rate. So if you have that luxury…do some research, figure out…who's the best insurer to go talk to?” – Kaz Weida ([34:06])

Timestamps for Major Segments

| Topic | Time | |----------------------------------------------------|-------------| | Credit Card Debt Trends & Insights | 02:28–09:21 | | Insurance in 2026: Trends & Market Forces | 12:48–15:21 | | Auto Insurance—Coverage and Savings | 15:21–19:40 | | Home Insurance—Premiums, DIY Savings | 20:36–24:52 | | Renters, Pet, and Life Insurance Essentials | 24:52–29:04 | | NerdWallet’s 2026 Best Insurance Product Awards | 29:11–33:41 | | Final Insurance Strategy & Closing Thoughts | 33:51–35:02 |

Final Takeaways

• Debt: Carrying debt may feel “normal,” but it’s costly—small changes in payment can have big impacts.
• Insurance: Markets remain volatile (rising costs, shrinking availability). Actively compare policies, don’t simply cut coverage, and look for discounts and value.
• Best Products: For 2026, Geico (auto), Travelers (home), Lemonade (term life), and ASPCA (pet) win for value and user experience.
• Bottom Line: Mind your coverage gaps, be proactive yearly, and use NerdWallet’s research to guide smart, value-driven insurance decisions in a changing world.