Auto and home insurance

Auto and home insurance are property and casualty policies that protect vehicles and dwellings against covered losses such as theft, fire, or accidents. Insurers like State Farm, GEICO, and Allstate issue auto policies covering liability, collision, comprehensive damage, uninsured motorists, medical payments, and personal injury protection.

Homeowners insurance covers hazards including fire, windstorm, hail, vandalism, and liability claims resulting from injuries on the insured property; examples include HO-3 (special form) and HO-5 (comprehensive form) policies. Bundling auto and home insurance with companies such as Progressive or Farmers can yield an average discount of 17% in the U.S, per YourInsurance.info.

According to Insurance.Com data from 2023. Claims for auto incidents often involve collisions or thefts–about 6% of insured drivers file a claim annually per Insurance Information Institute (III), while about one in twenty homes files a homeowners claim each year.

Deductibles apply separately to auto and home coverage; typical deductibles range from $500–$2,000 for homes and $250–$1,000 for autos depending on state regulations and policy choices. Policies exclude predictable maintenance costs; examples include oil changes for vehicles or roof repairs due to age for houses.

Coverage limits determine the maximum payout per occurrence; according to the National Association of Insurance Commissioners (NAIC), average dwelling coverage is about $300,000 while standard auto liability limits are $100k/$300k bodily injury per accident. Floods and earthquakes require separate endorsements or standalone policies because standard homeowners insurance excludes these perils; flood coverage can be purchased through the National Flood Insurance Program (NFIP).

Policyholders must update insurers after major renovations or vehicle modifications since these alter replacement cost calculations–examples are kitchen remodels or aftermarket car parts. Payment options vary; major carriers accept annual, semi-annual, quarterly, or monthly premiums via ACH transfer, credit card, or check.

Lenders typically require proof of both auto and homeowners insurance for financed cars or mortgaged houses as part of risk mitigation protocols documented by Fannie Mae guidelines.