Insurance Comparisons Needed
I’m currently under contract for a new home and expect to close in about four weeks, assuming everything goes smoothly with the sale of my current house.
I’ve been looking into bundled homeowners and auto insurance. My current provider is Allstate, but they didn’t offer competitive rates for the new property.
The new home features a 4,300 sq. ft. HVAC system, includes 3 bedrooms and 2.5 baths on the main floor, plus a partially finished basement, all set on a 0.9-acre lot with an inground pool. It’s located just half a mile outside the city limits of a town with a population of 15,000, in a small subdivision of 18-20 homes that has city water service (there are fire hydrants) and a volunteer fire department about 3 miles away.
For my vehicles, I have two with full coverage and one liability-only car (a work beater), plus a 20-foot utility trailer. There’s one minor at-fault accident on my record and a ticket on my wife’s record that will drop off in May.
Most of the coverage limits and deductibles are quite similar across the providers. For reference, I’m looking at a $600k-$615k replacement cost for the house, with a 1% deductible, $300k liability, and $350k for personal property.
While I’m not solely focused on finding the absolute lowest price, it is still an important consideration.
Here are my options so far (rounded amounts):
- State Farm: $3,300/year for home, $170/month for auto
- Alfa (a major player in Alabama, second only to State Farm): $3,150 for home, $296 for auto
- AAA: $2,650 for home, $253 for auto (this will drop to $220 after my wife’s ticket is cleared in May)
For comparison, Allstate quoted me $4,800 for the home, while Progressive came in at $6,800.
I have been with Allstate, but I’ve experienced a 125% increase over the past four years, despite having no claims. Looking for any insight or recommendations!
It sounds like you’re in a great position with your new home purchase, and it’s smart that you’re shopping around for insurance. Based on the quotes you’ve received, here are a few thoughts:
AAA seems to offer the best overall value, especially considering the rate drop after your wife’s ticket falls off. If you’re looking for comprehensive coverage without breaking the bank, they might be the way to go.
State Farm’s quote is competitive as well, but it’s significantly higher than AAA and might not be worth the extra cost unless you have a strong preference for their service or specific coverage options.
Alfa’s pricing is decent, but not as attractive as AAA. Since they are a major player in Alabama, you might find value in their local presence and claims service, but it may not justify the higher cost.
It’s worth considering how customer service, claims handling, and ease of communication play into your decision, especially since you’ve experienced a significant increase with Allstate. Reading reviews and possibly speaking with current clients can give you insight into their reliability.
Since you’re not just looking for the lowest price, consider any additional benefits each company offers—like bundling discounts, replacement cost coverage for personal property, and how they handle claims.
Ultimately, it may come down to personal preference and comfort with the company. Good luck with the new home and finalizing your insurance!