Bundling Home And Auto Insurance: The Progressive Advantage

Progressive offers customers the option to bundle their home and auto insurance policies, which can result in significant savings. By combining home and auto insurance, customers can take advantage of a multi-policy discount, saving an average of 5-7% on their auto insurance. This not only reduces insurance costs but also simplifies policy management, as customers only need to deal with a single company and make payments to one provider. Progressive also offers additional discounts for home insurance, such as safety and alarm discounts, new home construction discounts, and discounts for receiving policy documents via email. However, it's important to note that Progressive's homeowners policy is provided through a third-party company, Homesite, which has received some negative feedback regarding refund processing. Overall, bundling home and auto insurance with Progressive can be a convenient and cost-effective option for customers looking to streamline their insurance policies.

Discounts for bundling home and auto insurance

• American Family Insurance: Offers a bundling discount of up to 23%. Provides strong customer service, with fewer consumer complaints than expected for an insurer of its size. Offers a range of coverage options, including Diminishing Deductibles for both home and car insurance, which reduces your deductible by $100 for each year you drive safely.
• Amica: Offers a bundling discount of up to 30%. Excellent customer satisfaction ratings and low consumer complaints. Offers upgraded coverage packages, such as Platinum Choice for homeowners insurance, which includes extended dwelling coverage and increased liability limits.
• Auto-Owners Insurance: Available in about half of US states. Sells home and auto insurance through local agents. Offers a bundling discount, as well as a range of coverage options and discounts. One unique feature is that if an event damages both your home and car, Auto-Owners will reduce your auto deductible by the amount of your homeowners deductible.
• Country Financial: Strong customer satisfaction ratings and low consumer complaints. Offers a range of coverage options for both home and auto insurance, including guaranteed replacement cost coverage for homes and new car replacement for autos. Also offers various discounts, such as for installing smoke detectors and automatic sprinkler systems in your home.
• The Hanover: Offers two customizable packages for home and auto policyholders: Platinum and Prestige. Both include a bundling discount, with Prestige designed for higher-value homes and cars, offering flexible and generous coverage limits. The Hanover also offers a single deductible for both home and auto if they are damaged in the same event.
• State Farm: The largest property and casualty insurer in the US. Offers a bundling discount of up to $1,273 annually. Provides excellent customer satisfaction and strong financial strength ratings. Offers a long list of coverage options for both home and auto insurance, as well as various discounts.
• Travelers: Offers a bundling discount, as well as a range of coverage options and discounts. Draws fewer consumer complaints than expected for an insurer of its size. A good pick for eco-friendly homeowners, offering Green Home coverage that reimburses the cost of using environmentally friendly construction materials.
• USAA: Available only to active military, veterans, and their families. Offers a bundling discount of up to 10%. Provides excellent customer satisfaction and low consumer complaints. Offers various coverage options and discounts, including SafePilot, which tracks your driving habits and offers discounts for avoiding risky behaviours.

Pros and cons of bundling insurance

Pros of Bundling Insurance

Bundling insurance is when you buy more than one insurance policy from a single insurance company. This can include home insurance, auto insurance, life insurance, renters insurance, RV insurance, boat insurance, and more.

The main benefit of bundling insurance is the potential for cost savings. Most insurance companies offer discounts for bundling, which can often be substantial. According to Insurance.com, home and auto insurance bundles are the largest discounts providers offer. Bundling insurance can also make it more convenient to manage multiple insurance policies in one place. You only need to make payments to a single company, and you have a single company to deal with when making a payment, using online services, or asking questions. It can also be easier to access and manage all policy documents from one place.

Cons of Bundling Insurance

While bundling insurance can offer cost savings, it is not always the cheapest option. The combined total cost of coverage will depend on the insurer and the types and number of policies purchased. Some insurers may offer very affordable rates for one type of insurance but very expensive rates for another. In this case, it may be cheaper to get separate policies from different insurers, even after accounting for the bundling discount.

Over time, insurers may also raise premiums, which diminishes the value of the initial discount. Some insurers may also start with a higher premium when offering a discount, so the premium you end up with may not result in true savings. Additionally, some insurers may be great at handling claims and providing comprehensive coverage for certain types of policies but not for others. Therefore, it is important to compare quotes from multiple insurers and consider the quality of coverage to ensure that you are getting the best deal.

How to bundle insurance policies

Bundling insurance is when you purchase multiple types of insurance policies from the same provider. This means all your insurance policies — like your car, home, life, boat, or motorcycle insurance — are located in one place. This option makes insurance more convenient and less complicated, and it can also be less expensive than getting the policies separately.

• Gather your current insurance information: Have your current policy at hand as you search for a new one. Pull up your account with your current provider and have all the details ready. If it helps, make a chart and put your current insurance information in the first column.
• Get quotes online: Look for popular insurance providers whose coverage extends to your area of residence and request a quote.
• Compare the quotes: Compare quotes by looking at what each quote will give you for your money. Is it better to bundle car and home insurance from Provider A if Provider B’s more expensive plan offers more coverage? That depends on whether you want that extra protection. Take the comparison process seriously; it's often better to work with an agent to help you understand what each coverage is and how it protects you.
• Make your decision and switch: Compare as much as you want with as many companies and policy plans as you want. Your insurance bundle should be affordable while also covering a range of plausible events that you wouldn't want to pay for out of pocket. Insurance agents can provide expert guidance on how to shop for a bundled insurance deal.

Some additional tips for bundling insurance include:

• Get quotes: Use the estimation tools available on most insurance company websites. By entering some basic information about yourself, your car, and your home, you should be able to get a quick cost estimate.
• Shop around: Make sure to get quotes from several different insurers to compare rates. Just because a company offers home and auto insurance bundles doesn’t mean you’re guaranteed to save money.
• Compare coverage: Remember, price shouldn't be your only concern. You’ll want to make sure that the insurance bundle you choose contains the coverages you need, including any policy endorsements (or add-ons). Take your time, review your options carefully, and don’t be afraid to discuss questions or concerns with an agent.
• Choose quality: Choose a company (and an agent) you’re comfortable with – one that offers both a solid reputation for quality and service and has the coverage that you need.

What to do if you want to cancel one of your bundled insurance policies

If you want to cancel one of your bundled insurance policies, there are a few things you need to keep in mind. Firstly, it's important to understand that cancelling one of your bundled policies may result in losing any applicable multi-policy discounts. This could lead to an increase in rates for your remaining policies. Therefore, it's essential to weigh the benefits of cancelling against the potential loss of the discount.

Secondly, before initiating the cancellation, make sure to gather all the necessary information related to your policy, including your policy number, desired date of cancellation, and reason for cancelling. You will also need personal information, such as your name, address, phone number, and date of birth.

To cancel your policy, you can contact Progressive by calling their customer service, sending an email, mailing a signed cancellation letter, or visiting a local agent. Their customer service number is 1-866-416-2003, and you can also mail your cancellation request to:

> The Progressive Corporation, 6300 Wilson Mills Rd., Mayfield Village, Ohio 44143.

Make sure to allow enough time for processing by sending your request at least one week, or even two to three weeks, before your intended cancellation date. Once you have notified Progressive of your cancellation, they will send you a confirmation. Recheck the date of cancellation and verify if there are any refunds or cancellation fees owed.

It's important to note that Progressive does not typically allow policy cancellation online. Additionally, Progressive may require proof that you no longer need the coverage, such as a bill of sale if you've sold the insured item or a policy number for your replacement coverage.

Additional coverages to consider for Texas homeowners

Texas homeowners face a number of weather-related risks, including hail, thunderstorms, tornadoes, and hurricanes. As such, there are several additional coverages that Texans should consider adding to their homeowners insurance policies. Here are some key additional coverages to consider:

• Flood Insurance: Flooding is not typically covered by standard homeowners insurance policies. Texans concerned about flooding, especially those in known flood zones, should consider purchasing a private flood insurance policy or an NFIP policy if available. This will help protect their property and belongings from flood damage.
• Umbrella Policy: An umbrella policy can provide additional protection if you exceed the personal liability coverage limits on your homeowners insurance. It helps safeguard your assets in the event of liability claims.
• Sump Pump Coverage: Sewage backup or sump pump overflow due to heavy storms is typically not included in standard homeowners insurance. Adding water backup coverage as an optional extra can provide valuable protection.
• Windstorm Insurance: While wind damage is covered in most areas of Texas, residents of certain Gulf Coast counties need to purchase separate windstorm coverage from the Texas Windstorm Insurance Association. This is crucial protection against hurricane and tornado-related wind damage.
• Coverage for Freezing Pipes, Wind or Hail Damage to Shrubs and Trees: Standard homeowners insurance policies in Texas may not cover damage to shrubs and trees caused by wind or hail. They also may not cover damage from freezing pipes or continuous seeping water. Texans should consider adding this coverage, especially in areas prone to extreme weather events.
• Earthquake Coverage: Most homeowners insurance policies do not cover damage caused by earthquakes. If you live in an area with a risk of seismic activity, consider adding earthquake coverage to your policy.
• Backup of Sewers or Drains Coverage: This endorsement can provide coverage for damage caused by backed-up sewers or drains, which is often excluded from standard policies.
• Foundation or Slab Damage Coverage: Damage to the foundation or slab of your home may not be covered by a basic homeowners insurance policy. If your home is at risk of such damage, consider adding this endorsement for extra protection.
• Extra Construction or Repair Costs: If your home is damaged, standard policies may not cover the full cost of repairs or reconstruction. Adding an endorsement for extra construction or repair costs can ensure you have sufficient funds to meet local building codes and complete the necessary work.

Frequently asked questions