When looking for affordable homeowners insurance, even from a major provider like Progressive, it’s essential to understand the factors that influence rates and the strategies you can employ to save money without compromising crucial coverage.
How to Get Affordable Home Insurance with Progressive
Progressive, like many insurers, offers several ways to help you find a cost-effective homeowners insurance policy:
- Compare Rates with HomeQuote Explorer:
- Progressive’s HomeQuote Explorer tool allows you to compare homeowners insurance rates and coverages from their network of affiliated and third-party insurers.
- This tool is designed to provide side-by-side comparisons, helping you find a policy customized to your needs and potentially uncover the cheapest rates available through their platform. It can also assist if you’re considering switching your homeowners insurance.
- Consider Your Deductible Amount:
- Higher Deductible, Lower Premium: A fundamental principle in insurance is that a higher deductible generally leads to a lower premium. If you’re comfortable paying more out-of-pocket in the event of a claim, increasing your property damage deductible (e.g., from $500 to $1,000) can result in significant savings on your premium.
- Set vs. Percentage Deductibles: Some insurers offer a choice between a set dollar amount deductible and a percentage of your policy’s dwelling coverage. While a percentage deductible might initially seem more affordable, be aware that it could result in a much larger out-of-pocket expense if you have a significant claim, as it’s a percentage of your total coverage amount.
- Build a Bundle:
- Significant Savings: Bundling your homeowners and auto insurance with Progressive can lead to substantial savings, with new customers reportedly saving over 25% on average.
- Multi-Policy Discount: Progressive also offers a multi-policy discount for combining your homeowners policy with other policies like boat, motorcycle, or RV insurance. This extends the bundling concept beyond just home and auto.
Discounts to Get the Cheapest Home Insurance with Progressive
Progressive and its network of home insurance companies offer various discounts to help you save:
- Paying Policy in Full: You can often get a discount simply by paying your entire 12-month policy upfront.
- Quoting in Advance: Getting a quote at least 10 days before your policy starts may qualify you for an early quoting discount.
- Receiving Documents by Email: Opting for paperless policy documents can also earn you a discount.
- Safety and Alarm Discounts: Installing security systems, including burglar and fire alarms, automatic sprinklers, and security cameras, may lead to discounts.
- New Purchase Discount: If you’re purchasing a new home or switching from a renters insurance policy, you might qualify for a discount. (Note: The home doesn’t have to be newly built.)
- New Home Construction: The newer your home, the potentially larger the discount.
- Florida Wind Mitigation: For Florida residents, specific wind mitigation updates to the roof or other structures that meet the Florida Building Code can result in discounts.
- Single Deductible: If you bundle home and auto with Progressive (specifically with Progressive Home, formerly “ASI”), and a single event causes a loss covered by both policies, you may only pay one deductible.
Factors That Impact Home Insurance Rates
A variety of factors influence your homeowners insurance premium, beyond just the discounts and deductibles you choose:
- Prior Claims History: A history of previous claims, especially frequent or large ones, can indicate a higher risk to insurers and lead to higher rates. Insurers often use systems like the Comprehensive Loss Underwriting Exchange (CLUE) to track claim history for up to seven years.
- Type and Amount of Coverage: The more coverage you opt for (higher dwelling limits, additional endorsements like extended replacement cost or specific peril coverage), the higher your premium will be.
- Credit and Insurance Scores (where permitted): In many states, insurers use credit information (often translated into an “insurance score”) as a factor in pricing. A strong credit history can lead to lower rates, as it’s statistically correlated with a lower likelihood of filing claims.
- Location:
- Hazard Proneness: Homes in areas prone to natural disasters (hurricanes, wildfires, floods, hail) or high crime rates will have higher premiums due to increased risk.
- Proximity to Emergency Services: Being close to a fire hydrant or a professional fire station can result in lower rates because it indicates faster response times and potentially less damage.
- Age and Construction of Home:
- Older Homes: Tend to be more expensive to insure due to aging materials, potential outdated systems (electrical, plumbing), and a higher likelihood of needing repairs.
- Newer Homes: Often cost less to insure as they meet modern building codes and are less prone to age-related issues.
- Construction Materials: Homes built with fire-resistant materials (brick, stone, concrete) are generally cheaper to insure than wood-frame homes. The type and age of your roof also play a significant role.
- Home Size and Features: Larger homes generally cost more to rebuild, leading to higher premiums. Features like swimming pools, trampolines, or certain dog breeds can increase liability risk and, consequently, your rates (known as “attractive nuisances”).
- Home-Based Businesses: If you operate a business from your home, you may need additional coverage for business equipment and liability, which is not typically covered by a standard homeowners policy.
By understanding these factors and proactively utilizing available discounts and tools like Progressive’s HomeQuote Explorer, homeowners can work towards finding an affordable policy that still provides robust protection for their most valuable asset.