Can I have different deductibles for each policy?

Complete Guide to Choosing Separate Home and Auto Deductibles

Why This Question Matters for Colorado and Utah Residents

Bundling home and auto insurance is a widely recommended strategy for savings—15-26% on average in Colorado and Utah—but many residents are unaware that they don't have to choose the same deductible for both policies. With unique regional risks—like Colorado's record hail damage and Utah's rapid population and property growth—understanding how to structure your deductibles helps keep your out-of-pocket costs predictable.

• Regional weather risks: With Northern Colorado experiencing 7.3 hail days per year and Utah's severe winter storms, deductible choices for both home and auto claims can impact your wallet differently.
• Insurance market trends: 70% of Colorado carriers now use percentage-based deductibles for hail damage. Flexible deductible selection can protect you from unexpected out-of-pocket costs.
• Financial control: By picking different deductibles, you can match each policy to your emergency savings and actual risk exposure—lower for frequently used vehicles and higher for homes with infrequent claims.

What Most People Get Wrong

Many believe bundling requires identical deductibles for both home and auto, or that going with the default recommendations always offers the best value. In reality, percentage-based deductibles on homes (often 1% of dwelling value) can lead to major surprises during Colorado's hail season, while auto deductibles are typically flat, dollar-based amounts. Failing to align deductibles with your financial cushion—or misunderstanding how they interact with discounts—can cost you thousands in a year with severe weather.

Another misconception: bundled claims are always handled as one. In truth, you’ll usually pay each deductible separately unless your carrier specifically offers a "single event deductible" for related losses (less common in standard bundles).

The Complete Picture

When you bundle your home and auto insurance, you enjoy simplified management and solid discounts, but each policy remains distinct in how you structure out-of-pocket costs. For example, you may choose a $1,500 deductible for your home in Boulder to lower your premium and a $500 deductible for your car in Denver to keep unexpected repair costs manageable after a fender bender. In Colorado, consider that many insurers now assign a 1% deductible for hail on homes—which could be $3,500+ even on a moderately valued home—while letting you choose your flat auto deductible independently. In Utah, similar flexibility applies, but double-check for mandatory wind/hail deductibles in higher-risk ZIP codes.

This flexibility enables you to tailor your coverage to your real-world risk and budget. The key is to think proactively: if you drive daily on I-25 or commute through Salt Lake City's snowy winters, a lower auto deductible might be worth a slightly higher premium. For your home, especially if you have strong emergency savings, a higher deductible can make sense—unless your area experiences frequent claims. Whatever you choose, be sure your deductible decisions reflect both your financial reality and the mounting risks in our region.

Making the Right Decision for Colorado and Utah Residents

Question 1: How much can I reasonably cover out-of-pocket in a claim?

Assess your financial readiness for each type of loss. For many in Colorado and Utah, weather events (hail, wildfire, snow) can trigger large, unexpected losses:

• Review your emergency savings—could you write a $3,500 check for a hail-damaged roof?
• Does a $500 or $1,000 auto deductible fit your monthly cash flow after a car accident?

Question 2: How likely am I to need to file a claim for home or auto in my area?

Look up local risks and claims data. Example: In Fort Collins, 82% of wind/hail homeowners claims now require separate deductibles; in Salt Lake City, winter accidents push up comprehensive auto claims. Adjust your deductibles based on your actual risk, not just pricing.

Question 3: Am I planning for evolving risks and future premium changes?

Premiums and deductibles both rise as storms get more severe and market consolidation reduces carrier options. Choose deductible levels that you can live with both today and in case of rate increases or changes in your risk profile (e.g., adding a teen driver, home improvements, or moving to a higher-risk zip code).