What happens if I unbundle my home and auto insurance?

I've had my homeowners, auto, and umbrella policies with the same company since 2017. I'm considering moving my auto to a different insurer because adding my 16-year-old daughter is going to cost $2,500 more per year with my current company. My concern is that I'm in a high wildfire risk area in California and I'm worried my current insurer will drop my homeowners if I move the auto.

We have excellent credit, no claims on the homeowners but one small car claim. I've got a Honda Pilot and a Tesla 3, but my daughter doesn't even drive it (and it's still expensive). With so few companies writing in California right now, I can't afford to lose that policy. Any advice before making this decision?

This is a great question considering the California insurance market right now. The honest answer is that it depends on your insurer's specific guidelines, and the only way to know for certain is to call them directly and ask before you do anything. Most insurers won't drop your homeowners policy simply because you move your auto elsewhere, but there are no guarantees, and some companies do have bundling requirements built into their underwriting guidelines. In a high wildfire risk area, where the company is already taking on significant risk with your home, they may be more protective of that bundled relationship than they would be in a lower-risk market.

Your umbrella policy is a different story. Most umbrella policies are closely tied to your underlying auto and homeowners policies, and many insurers require that at least one, if not both, of those policies remain with them in order to keep the umbrella policy active. If you move your auto coverage, there's a chance your umbrella could get canceled. That's worth factoring into the total cost comparison, because replacing an umbrella policy elsewhere adds a step and potentially additional cost.

Before you decide, ask your current insurer specifically whether moving auto would affect your homeowners or umbrella. Get the answer in writing if you can. Also ask whether they'd be willing to re-rate your auto with the teen driver excluded from the Tesla specifically, since that may close some of the gap without requiring you to move anything.

Your bundling discount may be significant, but losing your homeowners coverage in a Fire Risk 5 area in California (where finding a replacement policy is genuinely difficult) could cost you far more in the long run. Once you check with them, you can always reach out to us to see if we have any options for you. You can call our agency at 888-444-8949 for a personalized quote. I hope this helps!