Auto-Owners Common Loss Deductible: How It Works
The Auto-Owners Common Loss Deductible is one of the most innovative bundled insurance features available from any major insurer. The feature eliminates the second deductible when the same incident causes damage to both your home and auto policies, effectively saving you hundreds or thousands of dollars during multi-policy claim situations. For Auto-Owners customers who bundle home and auto insurance, the Common Loss Deductible provides meaningful protection against scenarios that competing insurers handle by charging two separate deductibles.
This guide explains exactly how the Auto-Owners Common Loss Deductible works, when it applies, what it saves you, and how it compares to similar features at other insurers.
What Is the Common Loss Deductible?
The Common Loss Deductible is an Auto-Owners feature that reduces your auto insurance deductible to $0 when both your home and auto policies have claims arising from the same covered event. The feature is automatically included with eligible bundled home and auto policies at Auto-Owners.
This is meaningful because many incidents cause damage to both home and auto simultaneously. Without Common Loss Deductible, you would pay both your home deductible AND your auto deductible for the same incident, doubling your out-of-pocket costs.
How the Common Loss Deductible Works
Automatic Coverage
The Common Loss Deductible is automatically included on qualifying Auto-Owners bundled home and auto policies. You do not need to enroll separately or pay additional premium for the feature.
Trigger Event
The feature activates when a single covered event causes damage to both your home (covered by Auto-Owners homeowners insurance) and your auto (covered by Auto-Owners auto insurance).
Deductible Reduction
Your auto deductible is reduced to $0 for the claim, while your home deductible applies normally.
Single Event Requirement
The damage must arise from the same single event affecting both policies, not two separate incidents.
Both Policies Required
You must have both home and auto insurance with Auto-Owners. Customers who bundle these policies but with different insurers do not qualify.
Common Scenarios Where the Feature Applies
Hailstorm Damage
A severe hailstorm damages both your roof (homeowners claim) and a vehicle parked in your driveway (auto claim). Without Common Loss Deductible, you would pay your home deductible plus your auto deductible. With Common Loss Deductible, you only pay the home deductible.
Falling Tree
A tree falls during a storm, damaging both your house and a vehicle parked nearby. The Common Loss Deductible eliminates the auto deductible while the home deductible applies.
Vandalism Spree
Vandals damage both your home and vehicle in the same incident. Both deductibles would apply without the feature; only the home deductible applies with it.
House Fire That Damages Vehicle
A house fire spreads to a garaged vehicle, damaging both the home and the auto. The Common Loss Deductible eliminates the auto deductible during the same event.
Severe Weather Event
Tornado, hurricane, or severe wind damage affects both home and auto. Single event coverage triggers Common Loss Deductible.
Theft From Garage
Thieves break into your garage, damaging the home and stealing or damaging your vehicle. The single event triggers Common Loss Deductible benefit.
Real-World Example: How Much You Save
Consider a customer with these coverage details:
- Home insurance deductible: $1,000
- Auto insurance deductible: $500
- Hailstorm causes $8,000 in roof damage AND $5,000 in vehicle damage
| Scenario | Out-of-Pocket Cost |
|---|---|
| Without Common Loss Deductible | $1,500 ($1,000 home + $500 auto) |
| With Common Loss Deductible | $1,000 ($1,000 home + $0 auto) |
| Total Savings | $500 |
For customers with higher deductibles, the savings can be even more significant.
Who Qualifies for Common Loss Deductible?
Eligibility Requirements
To qualify for Common Loss Deductible, you need:
- Active Auto-Owners home insurance policy
- Active Auto-Owners auto insurance policy
- Both policies in good standing
- State where the feature is offered (most Auto-Owners states)
State-Specific Variations
Common Loss Deductible availability and specific terms vary by state. Your independent agent can confirm exactly how the feature works in your state.
How Common Loss Deductible Compares to Other Insurers
| Insurer | Similar Feature | How It Compares |
|---|---|---|
| Auto-Owners | Common Loss Deductible | Auto deductible waived for shared events |
| State Farm | Single Deductible feature | Available in some states |
| Erie | Limited bundled deductible benefits | Varies by policy |
| Allstate | Standard bundling discounts | No specific deductible waiver |
| Liberty Mutual | Standard bundling discounts | No specific deductible waiver |
| Nationwide | Standard bundling discounts | No specific deductible waiver |
Common Loss Deductible features are relatively rare among major insurers. Auto-Owners is one of the few major carriers offering this benefit as standard with bundled policies.
Combining Common Loss Deductible With Other Auto-Owners Benefits
With Multi-Policy Bundling Discount
Common Loss Deductible operates alongside the bundling discount of up to 25%. The cumulative value of bundling at Auto-Owners is significant.
With Personal Automobile Plus Package
If you also have the Plus Package, the included Diminishing Deductible feature works alongside Common Loss Deductible to provide multiple deductible-related savings opportunities.
With Accident Forgiveness
Accident Forgiveness prevents premium increases after qualifying first at-fault accidents. Combined with Common Loss Deductible, this provides comprehensive protection from various claim-related cost increases.
Tips for Maximizing the Benefit
Bundle Both Home and Auto With Auto-Owners
The feature requires both policies with Auto-Owners. Customers with home insurance elsewhere do not qualify.
Maintain Continuous Coverage
The benefit applies as long as both policies are active during the covered event.
Report All Damage From a Single Event
If an incident damages both home and auto, file both claims to ensure proper application of the Common Loss Deductible benefit.
Document the Single Event Clearly
When filing claims, clearly document that both home and auto damage arose from the same incident.
Discuss Specifics With Your Agent
Your independent agent can confirm exact application of the feature in your state and clarify any questions.
For broader perspective on managing auto and home insurance together, our guide on how insurance protects you from financial loss walks through bundling benefits.
Frequently Asked Questions
Does Common Loss Deductible cost extra?
No. The feature is included automatically with qualifying bundled home and auto policies at no additional cost.
Do I need to file a special claim type?
No. File your home and auto claims normally. Auto-Owners applies the Common Loss Deductible benefit automatically when the requirements are met.
What if my home is with another insurer?
The feature requires both home and auto with Auto-Owners. Customers with home insurance at a different company do not qualify.
Does the feature apply to renters insurance?
The Common Loss Deductible feature applies to homeowners insurance bundled with auto. Renters and condo policies may have similar but state-specific applications.
Can I use this feature multiple times?
Yes. The feature applies any time a single event triggers both home and auto claims, with no annual limit.
Does this affect my premium?
The feature is included with bundled policies and does not separately affect premium. The bundling discount of up to 25% applies separately.
Does Common Loss Deductible apply to commercial policies?
Commercial policies have separate features. Auto-Owners commercial customers should discuss specific deductible options with their agent.
The Bottom Line
The Auto-Owners Common Loss Deductible is an innovative feature that provides meaningful savings during multi-policy claim situations. By eliminating the auto deductible when the same event triggers both home and auto claims, the feature can save customers $500 to $2,000+ depending on their deductible levels.
For Auto-Owners customers who bundle home and auto insurance, the Common Loss Deductible is automatically included at no additional cost. The benefit is one of several reasons why bundling with Auto-Owners produces excellent value beyond just the bundling discount itself.
Combined with Auto-Owners’ competitive base pricing, exceptional claims service, A++ Superior financial strength rating, and other features like Accident Forgiveness and the Personal Automobile Plus Package, the Common Loss Deductible contributes to comprehensive coverage value that few major insurers can match.
The team at Matrix Insurance can help you compare Auto-Owners bundled coverage against other top carriers. Use our Car Insurance Calculator for auto coverage, our Home Insurance Calculator for home coverage, or reach out to our team directly for a personalized comparison.
Post Comment
You must be logged in to post a comment.