Most insurance companies love it when consumers couple insurance products. Whether its boat and auto, auto and home, home and rental home, or home and life, any and all all combinations are beneficial. The more products a consumer has with an insurance company, the more likely that consumer is to stay with the insurance company for a long time. It’s difficult to switch insurance, especially if switching one policy is going to cause the premium of another policy to increase. Two of the most common home-auto combinations are HO-5 and $250,000 / $500,000 auto liability limits, and the HO-3 and $100,000 / $300,000 auto liability limits.
The HO-5 is the best type of home insurance policy available to most consumers. It offers the most extensive coverage for the home and the personal property, and covers the broadest array of perils. If a homeowner elects to receive the best possible coverage for the home, then it is a pretty good indicator that excellent coverage is more important than a few extra dollars a month. If this is a correct assumption, then HO-5 homeowner’s should combine their home insurance with auto insurance that has liability limits of $250,000 / $500,000. These are typically the highest auto liability limits available through most companies. Having high liability limits may not be the most cost-effective thing in the short run, but affordable auto insurance rates are typically given to more responsible drivers. If a homeowner has very high liability limits, then the chance of receiving more affordable auto insurance isn’t a stretch.
Another combination that is a very common home-auto combination is the combination of the HO-3 policy with auto liability limits of $100,000 / $300,000. The HO-3 home insurance policy is the most common home insurance policy found in the United States. It has excellent coverage for the home, and very solid coverage for personal property. The largest difference between the HO-3 and the HO-5 is that the HO-5 provides broader protection for the personal property. Combining the HO-3 with auto insurance that carries liability limits of $100,000 / $300,000 is very common. In fact, just like the HO-3, the aforementioned liability limits are also the most common liability limits found on auto insurance policies in the United States. This combination offers excellent protection, but helps the consumer maintain affordable auto insurance and affordable home insurance.