How To Save Money
August 16, 2007 6:28 PM   Subscribe

Car Insurance + Home Owners Insurance = Saving $$ ?

Purchasing a first home in the Bellevue Kentucky area. Looking into home owners insurance with a umbrella policy for 1 car. The house would probably appraise around $130,000 and the car is nothing you would look twice at. assuming we went with an HO2 policy (if i even have that correct ) what would be a good estimate on the total cost of a policy? I currently spend about $75 a month on car insurance, is it smarter to roll it all together? would i save money?
posted by slowtree to Work & Money (9 answers total)
I don't understand why you're asking this question here instead of getting a quote from one or more insurance companies.
posted by Dec One at 6:30 PM on August 16, 2007

Response by poster: I have gotten quotes but they are over the place...possibly adding a second car to the coverage as well
posted by slowtree at 6:32 PM on August 16, 2007

There is typically a multi-policy discount involved with insuring your house and your car with the same company. this does NOT mean that it is cheaper than insuring with two companies.

Find an Independent Insurance Agent and ask him/her to give you some quotes.

Also check for rates from AAA, AllState, StateFarm, etc....

it just takes doing the homework...there isn't any shortcut!
posted by HuronBob at 6:38 PM on August 16, 2007

My insurance company gives me a huge discount for having both home and auto through then. Almost 20%, and I comparison shop every year. Which they then match. YMMV

So Id say it definitely say its worth a shot asking them.
posted by sandra_s at 6:50 PM on August 16, 2007

Oh and get an independent insurance agent. In 15 years Ive had 3 insurance companies, but only one agent. He can look at insurance companies, you may not be familiar with.
posted by sandra_s at 6:52 PM on August 16, 2007

First: IAAIA, but IANYIA (I Am Not Your Insurance Agent, so don't consider this professional advice), however: an HO2 isn't commonly used, and may have certain exclusions that you really don't want. In general, you want an HO3 to cover your dwelling (that's the house without the land, which isn't covered by a homeowner's policy), contents, other structures, personal liability and guest medical. Your agent will run a replacement cost estimator and if you have a mortgage, will look at the loan amount to determine the exact amount of Dwelling coverage (in general, Coverage A) needed. Are your assets such that an Umbrella Policy (which generally starts with one million dollars in personal liability coverage) is warranted? You shouldn't be compelled to purchase one at this point in your life if it isn't needed.

Your vehicle wouldn't be added to the Homeowners/HO3 policy, it would be written onto a separate automobile insurance policy, so asking what the total premium would be for both isn't really going to get you an accurate answer. The discount comes, in general, from carrying multiple policies with the same agent, as long as your agent can write both homeowners and auto. Sometimes, this can provide you with a fantastic discount and the convenience of having one agent to handle everything for you. However, you'll want to shop around and compare apples to apples on both policies to make sure that you're getting the coverage that you need at the best price. For instance, check the auto rates at a company like GIECO or Progressive. Your auto insurance rates might be so much lower than with Insurance Company A that it would trump any discount you might get on the Homeowners policy by carrying both with them.

Make sure that you check the rating on any company that you're getting quotes from by asking the agent what the rating is (you want at least an A/Exceptional rating) or by checking it yourself by visiting AM Best and Demotech. Since I'm not licensed and have never sold homeowners insurance in KY, I couldn't even begin to estimate what your premium should be. In fact, the value of your home and the amount of your loan are going to be the biggest factors in determining your rate. Just talk to some agents. Ask lots of questions. Think about what's important to you: Do you want to be able to go to one agent for everything, or is the lowest price a bigger deal? If you do your research, talk to your neighbors and your real estate agent, and get several quotes, you'll probably make out fine.
posted by mewithoutyou at 8:17 PM on August 16, 2007

I have gotten quotes but they are over the place...

So go with one of the cheaper ones, after googling the insurance company to see how many people have beefs with them.

If even the cheaper ones seem too high, call more companies. Thus will you learn whether you just called expensive companies first, or had unrealistic expectations.

Whether it is cheaper to have one insurance company for both or separate companies will depend entirely on the company and your circumstances.
posted by ROU_Xenophobe at 8:18 PM on August 16, 2007

My neighbor doesn't have a car and is somewhat anti-car. It was cheaper for him to buy combined homeowners and auto insurance policies than just to get homeowners alone.

He finds that really funny.
posted by bottlebrushtree at 8:55 PM on August 16, 2007

Packaging home/auto/umbrella can save you some bucks, yes. However, why on Earth would you want an HO2, a named perils policy, where specific types of losses are covered? Spend the extra $150 and get an HO3, an open perils policy, where any type of loss is covered unless specifically exluded by the policy (e.g. acts of war, wear and tear, etc.).

What's the difference. When you have a loss with an HO2 you need to prove to the company that the loss is covered. Same situation with an HO3 the company must prove the loss is not covered in order to decline, and there is much more wiggle room especially if you have a good agent or broker to advocate for you.
posted by digiFramph at 6:00 AM on August 17, 2007

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