Bundling your home and car insurance — basically, getting both policies from the same company — can save you a good chunk of money.
In life, we need to protect what is most important: our home, our car, our health, and even our family pets. But how about the fact that keeping all of these policies can be quite a harsh tax on your budget?
The bad news? Not as many insurance companies will provide a discount if you have more than one type of insurance, but the good news is that many insurance companies do! It is referred to as a “bundle” or “grouping”.
You can save money by combining several policies, but the most common combination — and the one that usually gives the best discounts — is home and car insurance.
This is one of the biggest discounts most insurers offer, so it’s worth checking to see if you qualify. Even if your policies are administered by the same company, they’ll still be separate, each with its own policy number.
Here’s a breakdown of how it works, why it might be a smart move, and what to look for. So, read below and learn more.
What makes a good home and car insurance package?
Most major insurance companies that sell home and auto insurance offer discounts when you bundle, but how much you’ll save depends on the provider.
Typically, you’ll get a discount on both policies, either in dollar amounts or as a percentage. To find the best deals, compare reputable insurance companies. See what they offer in terms of savings, customer satisfaction, and extra perks.
Companies that allow you to customize your coverage and provide additional discounts tend to offer the best value.
How does bundling work?
It’s simpler than it sounds. Bundling means purchasing more than one type of insurance — such as home and car insurance— from the same company.
The big advantage? A direct discount on your bill! It also makes your life a lot easier, since you can take care of everything in one place – whether with a single agent, app or website. Who doesn’t want less headaches and more money in their pocket?
And it doesn’t have to stop there. Many insurers let you add other types of coverage, such as for motorcycles, boats, trailers or even rental properties. Ultimately, it’s a way to organize your policies and save money wisely.
After bundling, you’ll usually get an automatic discount applied to your premiums.
Even if you’re buying multiple policies, bundling doesn’t always mean combining them into one policy. Instead, you’ll have separate policies, but you’ll get the discount because they’re under the same insurer.
The disadvantages to home and car insurance bundled together
While you may be able to bundle your home and auto policies, that isn’t necessarily true for everyone. Discounts can add up quickly, making your premiums more affordable. But there are also other benefits that are included:
- Easier to manage: Having both policies with one insurer means fewer bills to juggle. It’s super convenient because you’ll likely be using the same app or online portal to do everything.
- Simplified billing: Some companies will let you merge your home and auto bills into one. Let’s say they don’t, though, then you’re just one company to work with for payments.
- Single deductible benefits: If something like a storm damages your home and car, some insurers will let you pay just one deductible instead of two.
The disadvantages of bundling home and car insurance
Not all insurance companies offer home and auto policies. So combining the two may not be an option. Likewise, some insurers don’t offer the specific coverage options or discounts you might need for both home and auto.
Sometimes bundling involves a partnership between companies. While you may still be able to get a discount, your policies may be managed by different companies, which can be less convenient.
It may not be the cheapest either as it’s a bundled option. Bundles may be convenient, but they aren’t always the cheapest. So it’s worth comparing standalone policies from different providers to make sure they aren’t overcharging you.
Bundling is convenient, but doesn’t mean the bundle deal is the cheapest. It’s a good idea to compare individual policies from multiple providers to make sure you’re not paying more than you need to.
Is bundling right for you?
The complimentary option of bundling your home and auto insurance policies can make saving and controlling your coverage convenient.
If you have a home and a vehicle, it’s a good idea to get quotes from insurers that offer bundled discounts to determine your potential savings.
However, don’t assume that this will always yield the best price. If you find more favorable rates for individual policies, bundling may not be worth it.
Tips bundling your home and car insurance policies
Before you explore your options, figure out what is the most important to you. Would you like the lowest price?
Provider that knows how to provide excellent customer service? Specific coverage features? Knowing your priorities will narrow the choices down for you.
Contact different insurers on package deals, where various things are made available together to a certain group of people. Requesting the same levels of coverage for both policies should you make sure you’re on equal footing.
Under the surface, consider more than price. Write about the size discount, customer reviews, and whatever really helps making the purchase even better. Once you’ve located the right insurer, create your own the new policies.
If you are switching companies, do not cancel your existing policies until the new ones are active. For home insurance, you should also notify your mortgage provider of the change.
Conclusão
How much do you care about not getting sued—and, even if you do, how expensive is that? That’s the question of how much to spend on insurance, and you choose a price that affects how much home and auto insurance you can afford. Whereas some people want to find the lowest price, others may prioritize things like excellent customer service, solid financial support or even easy to use an app.
That said, there’s no one-size-fits-all answer when it comes to the best home and auto insurance. The best way to figure out what works for you is to compare quotes from different companies.
Think about what’s most important—price, coverage, discounts, or how easy it is to manage your policies—and use that as your guide.
