Should You Bundle Your Home and Auto Insurance?
What if you could keep top-notch home and auto coverage while lowering your monthly premiums in a simple phone call?
Most people who own their own home have both homeowners insurance and auto insurance. The protection offered by this coverage is important, but the cost of the monthly premiums can quickly add up.
In this situation, many try to save money by choosing to bundle home and auto insurance. But does this method save money, and what do you need to know to start? Buckle up and keep reading to discover whether a home and auto policy bundle is a good idea for you and your coverage needs.
The Benefits of Bundling Home and Auto Insurance
If you are on the fence about getting bundled home and auto, chances are you are focused on one big question: What, exactly, are the benefits of bundling insurance in this way? As it turns out, there are two primary benefits that you can start enjoying right away.
Potential Cost Savings
The biggest benefit of bundling your coverage through the same carrier is that you can effectively secure both an auto insurance discount and a home coverage discount (no matter what type of homeowners insurance policy you have). You will still need both types of coverage, of course, but getting them as a bundle can help you start immediately saving on your premiums.
Why do carriers offer savings for bundling? The short answer is that carriers always prioritize customer loyalty and want to do business with clients for as long as possible. Bundling your coverage in this way shows the carrier you are willing to go “all in” on doing business with them, and in exchange, they are happy to offer you a discount for not taking some of your business elsewhere.
Convenience and Flexibility
Aside from saving on your monthly premiums, the other chief benefit of bundling is that it offers enhanced convenience. Typically, those who do not bundle have different types of policies from different carriers. That means getting two sets of paperwork, paying two sets of bills, and generally dealing with twice as much hassle.
Conversely, bundling allows you to cut everything in half. Imagine how much time you could save only paying one bill, only getting one set of paperwork, and having a “one-stop shop” for all your coverage needs. This ultimately helps you save something just as important as money: It helps you save time, and there are few things as precious (or as limited) as your free time.
How to Find the Right Home and Auto Insurance Bundle
Assuming you already get your home and auto coverage from separate carriers, the easiest way to get a good bundle is to ask each carrier for a free quote. By discovering how much your new premium would be, you can decide which carrier to go with for your bundling needs.
At the same time, you should go beyond the ones you are already doing business with and get quotes from other carriers. This may help you discover even better bundling options. You may be able to save even more on your monthly premium in the same way that you can shop around and negotiate a better car insurance premium.
Additional Insurance Bundle Options
So far, this guide has focused on home and auto because these are the primary types of coverage consumers need to bundle. However, you should know that it is possible to bundle other types of policies through the same carrier as well.
For example, if you need to insure other vehicles, such as boats, RVs, and motorcycles, it is possible to bundle those in with your existing policies. While some companies may call it a “multi-policy discount” rather than a bundle, you can also save by insuring multiple vehicles (such as yours and your spouse’s) through the same company. This generally offers all the advantages mentioned above, saving you ample time and money.
Understanding How Bundle Discounts Work
In function, bundling discounts are like any other discounts offered by carriers. The primary difference is that other kinds of discounts are usually tied to a specific behavior on the part of the customer, such as getting an auto policy discount for completing a defensive driving course. With bundling, you can get a discount simply by putting all your different types of coverage with the same carrier.
At the end of the day, carriers are happy to do this because bundling serves as a form of marketing. It encourages customers to get all their coverage needs met by the same company, and carriers consider offering discounts as a small price to pay for gaining additional customers. To maximize savings, it can also be beneficial to know how to read and understand your auto insurance policy.
FAQs About Bundling Insurance
Are Bundling and Multi-Policy Savings the Same Thing?
Whether bundling and multi-policy discounts are the same thing depends on the carrier. Whether or not your own carrier considers them the same thing or not does not change the fact that getting multiple policies via the same carrier is one of the most reliable ways to save time and money each month.
If I Buy an Auto Insurance Policy Today, Can I Add Home Insurance Later?
Unlike health insurance, you can add additional types of coverage (including home coverage and more) at any time. This is advantageous because you can discover whether you like doing business with the carrier before you take the plunge and do even more business with them.
Can I Bundle Policies From Different Insurance Providers?
It is impossible to bundle policies from different providers. By definition, bundling involves getting multiple policies from the same carrier.
Will the Discounts Remain the Same if I File a Claim on One Policy?
If you file a claim, you will still save money via the bundling discount. However, it is possible that the overall cost of your monthly premium will rise. Keep in mind that you are still paying less than you would without the bundle because otherwise, you would be paying the increased premium with no discount whatsoever. To ensure you are saving enough with your bundle, you may want to review how much car insurance costs in your state.
Are There Certain Requirements Needed to Bundle Auto and Home Insurance?
While the policies themselves may have special requirements (for example, meeting the minimum automobile coverage requirements mandated by your state), there are no specific requirements for bundling policies. Bundling is as easy as buying multiple policies from the same carrier and simply asking for a discount.
Find the Best Home and Auto Insurance Bundle
Now you know how to bundle home and auto insurance. But do you know where to find a carrier that offers the best savings as well as the excellent customer service you deserve?
At InsureOne, we are here to provide all of your coverage needs, and if you are ready to bundle, we are ready to help you save. Why spend all that extra time and money each month when you do not have to? We can help you get a quote online. Of course, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into an InsureOne office near you at your earliest convenience.