Does bundling affect my deductibles?

Complete Guide to Bundling and Deductibles

Why This Question Matters for Colorado and Utah Residents

Deductibles determine your out-of-pocket costs when claims happen, and Colorado and Utah residents face unique risks—like severe hail, wildfires, and icy roads—that make smart deductible management crucial.

• Hail Frequency and Severity: In Colorado's Front Range, the average roof replacement after hail is $17,000, with most carriers applying a 1-2% dwelling deductible for wind/hail—meaning a $350,000 home could require a $3,500–$7,000 payment before coverage kicks in.
• Auto and Home Claims Often Coincide: Regional storms regularly damage both vehicles and homes simultaneously. In 2023, 82% of weather claims in Northern Colorado triggered percentage-based deductibles on both policies.
• Confusion Can Cost Money: Many assume bundling means one deductible per claim, but almost all carriers require separate deductibles for each policy, which surprises many families after a storm or accident.

What Most People Get Wrong

A common misconception is that bundling home and auto means you only pay one deductible if multiple claims arise from the same event (like a hailstorm damaging your roof and car). In reality, you'll almost always need to pay both deductibles individually. Another myth is that all bundled policies offer special deductible programs. In Colorado and Utah, these programs are rare and usually require you to remain claim-free for years to qualify for reductions.

It's also easy to overlook that many carriers now use percentage-based deductibles for hail—much higher than flat deductibles. For example, Larimer County's average roof deductible has climbed to $4,250 as of 2025.

The Complete Picture

When you bundle home and auto insurance, you gain valuable premium discounts (average 11–26% in Northern Colorado), streamline claims handling, and often get loyalty perks. But deductibles almost always stay separate: a $500 auto deductible and a 1% of dwelling home deductible are both required if you file two claims.

Some carriers now offer programs called "deductible rewards" or "vanishing deductibles"—for example, saving $50-$100 off each deductible per claims-free year, maxing out after 5 years. However, these are opt-in benefits and not automatically bundled into every policy. Notably, Colorado regulations require agents to clearly disclose deductible structures on bundled policies since 2021. Review these disclosures annually, especially as climate and market conditions drive rapid product and price changes—Larimer and Weld counties in particular continue to experience the nation's highest hail claim rates.

Making the Right Decision for Colorado and Utah Residents

Question 1: Do I know my actual deductible amounts for hail, fire, and auto?

Deductibles may differ among perils and policies. Review your declaration pages and ask for:

• Flat dollar vs. percentage deductibles for home (wind/hail is often higher)
• Auto comprehensive/collision deductible—consider real out-of-pocket if both are needed

Question 2: Does my carrier offer deductible-reducing or forgiveness programs?

Some insurers in Colorado and Utah offer loyalty programs or "vanishing deductible" features—but these are not standard. Ask your agent:

• If you are eligible for annual reductions
• What is required to qualify, and how much can you realistically save?

Question 3: Am I at risk of paying both home and auto deductibles from one event?

Consider your exposure—hail is the leading cause, especially in areas like Fort Collins and Boulder. Prepare for scenarios where you may need to pay both deductibles, and set emergency funds accordingly. Document your property before storm season for smoother claims.