Insurance Comparisons
I’m in the process of purchasing a new home and expect to close in about four weeks, provided everything goes smoothly with the sale of my current property.
I’ve been reviewing bundled homeowners and auto insurance options. My current provider, Allstate, wasn’t competitive at all for the new place.
The new home features 4,300 sq ft of HVAC space: a 3-bedroom, 2.5-bathroom layout on the main level, with a partially finished basement, situated on a .9-acre lot that includes an inground pool. It’s located just half a mile outside the city limits in a town with around 15,000 residents, nestled in a small subdivision with 18-20 homes, city water (complete with fire hydrants), and a volunteer fire department just three miles away.
Regarding auto insurance, I have two vehicles with full coverage and one liability-only vehicle (my work vehicle). I also need to insure a 20-foot utility trailer. I’ve had one minor at-fault accident and my wife has a ticket that will come off in May.
Overall, the coverage limits and deductibles are quite similar across different providers. The home is valued at around $600,000 to $615,000 for replacement, with a 1% deductible, $300,000 for liability, and $350,000 for personal property, among others. I’m not necessarily looking for the absolute lowest price, but cost is definitely a consideration.
Here are some quotes I’ve received (amounts rounded):
– 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 drops to $220 after my wife’s ticket is cleared in May).
For comparison, Allstate quoted $4,800 for the home insurance, while Progressive came in at $6,800. I’ve been with Allstate for four years and have seen a 125% increase in my premiums despite having no claims.
It sounds like you’re doing your homework and considering your options carefully, which is great! Here’s a quick breakdown of what to consider when comparing those insurance quotes:
Coverage Evaluation: Ensure that all quotes are providing the same level of coverage. Since you mentioned that the limits and deductibles are pretty close, this should help in making an apple-to-apples comparison. You might want to double-check any specific endorsements or exclusions that could differ between policies.
Reputation and Claims Process: While price is important, consider the reputation of each insurer regarding customer service and their claims process. Reading online reviews and talking to friends or family about their experiences can provide insight into how well a company handles claims.
Discount Opportunities: Check if any of the companies are offering discounts that you might qualify for. Sometimes, bundling policies or having certain safety features in your home or cars can lead to additional savings.
Total Cost: Don’t forget to calculate the annual cost for auto insurance as well, to get a sense of the total payment for both home and auto. It appears AAA is the most cost-effective option overall, especially with the potential drop in the auto premium when your wife’s ticket drops off.
Long-Term Considerations: Given that you’ve seen a significant premium increase with Allstate, it’s smart to think long-term about potential rate increases with your new insurer as well. Ask about their rate history or how often they increase premiums.
Local Presence: Since your area has a volunteer fire department and specific nuances, it could be worthwhile to verify how well the insurers understand your region’s risks and needs.
In summary, AAA seems like the most competitive option based on your data, especially considering the potential decrease in auto rates soon. However, make sure to factor in all the qualitative aspects, like customer service reputation, as you make your decision. Good luck with your new home!