If you’re looking for auto and home insurance, picking and buying your plans all from one company can be a convenient and easy way to save money on both of your premiums. We’ll outline how bundling works in the insurance world and how to decide if this is a smart move on your part.
How Bundling Your Auto and Home Insurance Policies Can Save Money
Just like any industry, insurance companies want to get as much business from you as they possibly can for as long as they possibly can. This is why many of these home insurance companies offer several different discounts when you sign up to bundle more than one policy with the same company.
The biggest money-saving and most common bundle is the combination of home and auto insurance. You could easily save between 15 and 20% on your premiums when you bundle these two policies. A lot of companies will allow you to bundle renters insurance, life insurance, motorcycle or boat insurance, or condo insurance all in one.
The specific discounts the company offers you will depend on what you own and your current location. It’s important to note that each state can have a huge difference in your savings. For example, if you lived in Florida and bundled your insurance, you could save just over 6%. However, if you lived in Mississippi, you could potentially save up over 23% on your premiums. This is why it’s so important to shop around before you make your final choice.
Benefits and Drawbacks of Bundling Auto and Home Insurance
There are benefits and drawbacks associated with bundling your insurance policies, and you want to know the biggest ones before you make this financial decision. They include but are not limited to:
Benefits of Bundling Insurance Policies
- Pay One Deductible – If something like a big storm happens and causes damage to both your vehicle and your home, some companies will only have you pay a single deductible for both policies before it pays out. If you didn’t bundle your insurance, you’d have to pay two deductibles to get them to cover your repair costs.
- Reduce the Chances of the Company Dropping You – Having multiple policies with the same company can reduce your chances of the company dropping you. They could cancel your coverage for a variety of reasons, including living in an area that is more prone to disasters or making multiple claims.
- Save Money with Your Premiums – One of the biggest benefits of bundling your auto and home insurance is the ability to save on your premiums. When you buy several policies from the same insurance company, you could potentially save up to 25%.
- Streamline Your Monthly Bills – If you have a single insurance company with several policies, it can be easier to track your accounts and ensure you don’t have late payments.
Drawbacks of Bundling Insurance Policies
- Easy to Get Compliant – While it’s true that bundling can save you money, there is no concrete guarantee that it will. Also, even if you do manage to find lower rates by buying multiple policies with different companies, being able to bundle makes it convenient enough that you get compliant and don’t shop around and switch companies. If the premiums go up each year, this could be a huge mistake.
- You Could Have Multiple Companies Anyway – Some insurance companies are affiliates that farm specific types of policies to other companies. This could mean that you miss out on dealing with a single company and one bundle. If it’s important to have all of your policies under one company in the bundle, ask the company about how it approaches this process.
Factors to Consider Before You Bundle Your Auto and Home Insurance
Although bundling can be a fantastic way to save money year after year, there are specific situations where bundling might not be in your best interest. If you have expensive car insurance because you have a history of accidents or infractions or your credit is poor, it may be better to find a company that will cater to your specific needs.
So, before you make a final decision, get the total price of the two cheapest insurance policies you can find for individuals and compare this number to the cheapest bundled option. When you do this, make sure that all of the companies involved have similar coverage tiers. A certain insurance bundle can seem like the best idea at the time; the coverage tiers may fall flat when you compare them to another company. Always make a point to read the fine print and make a point to shop and compare companies.
Tips to Help You Bundle Better
The following quick tips can help you avoid complications while getting the most coverage for your money. They include:
- Check for Third Parties – Ask any company you approach if they utilize an affiliate or a third-party insurance company for both policies you want to bundle. This can still save you money, but the convenience factor of having to deal with only one insurance company will go away.
- Compare a Range of Quotes – Make a point to compare multiple policies either in-person with an agent or online by yourself. Any independent insurance agent can pull multiple quotes from different companies. Agents who are locked into one company can only offer discounts from that particular entity.
- Shop Around Once or Twice a Year – Make a point to sit down and shop around regularly, at least once or twice a year. Look for quotes for both individual and bundled auto and home insurance policies. Compare whatever you find to see which one is best for your situation.
Nsure Can Help Compare Auto and Home Insurance Policies
No matter if you want single or bundled home and auto insurance policies, Nsure can help. We compare rates from over 50 companies, and you can compare them all on our platform before making the best choice to save you the most money without sacrificing coverage.