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Home and Auto Insurance Companies
A home is one of the most expensive things you will ever own, and a vehicle is a close second. Both need insurance to protect your financial assets, so searching for insurance for both is an important task. Many people look for insurance companies that provide both forms of coverage to save time and money.
You can get car insurance quotes from companies that provide home insurance as well by inserting your ZIP into the FREE box on this page immediately!
When searching for both home and auto insurance, it is important to find a company that is a strong provider in both areas. There are a few areas that require research before you decide on a company for your home and auto insurance needs.
Bundling Pluses and Drawbacks
Many people utilize an insurance provider that offers both auto and home insurance packages, as there are many benefits to doing so. First and foremost, you can generally realize significant savings from having two policies with the same company; this is generally referred to as bundling policies. You basically receive a discount for giving more of your business to the same company.
Companies that offer both lines of insurance offer different discounts in different ways for bundling services, so you will need to crunch the numbers to figure out which company offers the best savings for the same amount of coverage. Some companies may offer an overall discount on your premiums while others may offer a discount on your deductible. Other benefits include managing one payment rather than two, so it is easier to keep track of.
However, bundling does have its downsides. It makes it harder to switch if you are unhappy with your service in one line but not in the other. Also, you might not really be getting the same company providing each kind of coverage.
Many times, a parent company buys smaller insurance providers and essentially allows them to continue operating as-is as a subsidiary.
So your car insurance provider and home insurance provider may be two separate companies with different phone numbers and different agents.
Auto Insurance Needs
Before you begin searching for an insurance company to provide both home and auto insurance, you need to understand your insurance needs in both areas. In this way, you will be able to easily compare the quotes of one company with the quotes of another.
For auto insurance, you first need to determine how much mandatory insurance you need for coverage to cover the damages you inflict on others. Most states have a minimum amount of mandatory insurance that you must buy, but most experts agree that state minimums are not enough to cover your liability in case of a serious accident.
The specialists at the Insurance Information Institute report that most experts recommend no less than $100,000 in coverage per individual and $300,000 to pay for injuries you cause.
State minimums range from the lowest of $10,000 for each person and $20,000 for the entire accident to the highest of $50,000 per person and $100,000 in coverage for the whole accident. Most state minimums don’t come close to the amount recommended by experts.
Then you also have to determine your optional coverage needs, such as collision, comprehensive, towing, and car rental reimbursement. If you still owe money on the loan for your vehicle, then you are probably required to carry these types of coverage anyway.
Collision pays for damages to your vehicle from an accident, and comprehensive pays for damages caused by other means, such as hitting a deer, vehicle theft, or a fire. While these coverage options are not required by law, it is a good idea to have them if your vehicle is worth any kind of money. Few have the cash on hand to fix or replace a vehicle completely out-of-pocket.
You will also need to determine a deductible for your optional coverage. A deductible is the amount you agree to pay if you have a claim. Most choose deductibles around $500 to $1,000, but there are higher and lower options.
Raising your deductible will help you to save on your premium, but it will also mean you will have to pay more if you file a claim.
Home Insurance Needs
Home insurance is also vastly important, and a general policy usually contains four separate areas of coverage. The first covers your home against damage from fire, storms, and lightning. Make sure that you get coverage for all the events that could occur to your home, as most standard policies do not cover flood or earthquake damage.
The second covers your personal belongings in the event of theft or if destroyed by fire or a natural disaster. You are usually also covered by this part of your policy if items are stolen out of your vehicle.
The third coverage protects your liability on your property, such as if someone gets hurt while on your property or your dog bites someone. The last part of a homeowner’s policy concerns the cost to stay in other accommodations if your home becomes unlivable due to a fire or natural disaster.
The limit amounts of each area of your home insurance policy will vary depending upon your needs. The values of homes and personal belongs vary greatly from person to person, so you will need to evaluate your personal insurance requirements.
Major Companies that Supply Both
Many major car insurance providers also offer home insurance policies as well as other lines of insurance. Diversifying is a good business practice, as you don’t want to put all of your eggs in one basket.
The National Association of Insurance Commissioners releases market share data of the largest providers in the U.S. every year. These companies have the highest amount of customers, generating billions in revenue every year.
Insurance companies that are in the top 10 ranking of all insurance providers for both home and auto insurance are:
- State Farm – This insurer is the biggest in both home and private auto lines of insurance.
- Allstate – This provider is the second largest in both lines of insurance.
- Zurich Insurance Group – It is the third largest in home insurance and the fifth largest in car insurance.
- United Service Automobile Association Group – This provider is fifth in home insurance and sixth in personal auto insurance.
- Liberty Mutual Group – It is the fourth largest provider of home insurance and the seventh largest auto insurance provider.
- Traveler’s Group – This insurance company is the ninth largest auto insurer and the sixth largest home insurance provider.
- American Family Insurance Group – It is the tenth largest home insurance provider and auto insurance provider in the U.S.
There are many insurance companies that provide multiple lines of insurance, and you don’t have to go with the largest. There are other factors that you should also consider when searching for a multiple insurance provider.
Compare Ratings
One point that is very important concerning insurance companies is their financial stability. When you are researching which company to go with, you need to be sure to look up the financial ratings of the company.
Ratings provided by agencies such as AM Best and Moody’s will allow you to ensure that your insurance provider has the financial wherewithal to remain in business for a long time to come. You to know that your insurance provider will be able to pay your claims in the future, even in the event of a poor economy or natural disaster.
This is especially true when you get both your car insurance and your home insurance from the same company. If they can’t pay your claims due to bankruptcy, you may have little recourse to having your claims paid.
Companies that don’t have strong financial bases can falter in a poor economy or large natural disaster. Just think of the number of claims for vehicles and homes due to the flooding and wind damage of Hurricane Katrina in New Orleans! If an insurer does not have the assets to cover such claims, then they will go broke and there will be no one to pay your claim.
Financial ratings let you know how well insurance providers manage their finances. If the rating is low, such as below a B, then you should search for another provider. This is one area where the largest insurance providers have an advantage.
They have so many customers that they can absorb multiple claims and stay in business.
You will also want to compare customer-generated surveys as well, such as those offered by JD Power & Associates. You also want an insurance provider that provides great service, as there just may be a day where you drive your car into your home, and you need a very understanding agent to help out!
Compare Quotes
Another action that is of the utmost importance when searching for an insurance provider for both your home and your vehicle is to shop around. You need to compare quotes from multiple companies in order to understand the range of prices available to you.
Get separate quotes for your home and auto insurance, and get bundled policy quotes. Then crunch those numbers to see which provides you with the best rates for the same coverage. Choose three or four of those providers, and go check out their financial ratings and customer service ratings.
Those ratings will likely be the deciding factor between two similar quotes, but it will make all the difference in the long run!
Get quotes from leading home and car insurance companies just below by putting your ZIP code into the FREE box right away!