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Everything You Need to Know About Bundling Home and Auto Insurance

By Hoffman Brown Insurance | , , , | No Comments
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Bundling home and auto insurance is one of the best ways to save on your premiums. Many insurance providers offer substantial discounts when you bundle two or more insurance policies. Bundling your home and auto insurance reduces your premiums and makes it easier to manage your insurance policies, as you will have one provider to deal with and one renewal date. Nevertheless, before you bundle your insurance policies, it is crucial to understand the benefits and drawbacks of it.

What Does It Mean to Bundle Home and Auto Insurance?

When shopping for home and auto insurance policies, you might come across a discount for bundling policies or a multi-policy discount. Combining your home and auto policies can save you 5-15% or more, depending on the insurance provider.

According to the National Association of Insurance Commissioners, homeowners pay $1,272 annually for home insurance and $1,204 annually for auto insurance. However, bundling both policies could save them more than $500 annually.

However, don’t settle with the first discount or policy. Ensure to get the best possible deal. You can compare policies and rates to find the policy that meets your needs and budget.

Benefits of Bundling Home and Auto Insurance

How much you can save by bundling your homeowners and auto insurance policies depends on your chosen provider. However, besides saving money, you can experience other benefits, including:

  • Effortless Policy Management: Bundling your policies with the same provider makes it easy to make payments, change coverages, and review bills, as you can do them all from one account.
  • Reduces Termination: If you have two or more policies from the same insurer, they may be less likely to drop your home insurance coverage even if you file multiple auto claims.
  • One Deductible: You can pay a single deductible for all your policies rather than one $500 deductible for home damage and another $500 deductible for auto damage resulting from the same windstorm.

Demerits of Bundling Home and Auto Insurance

Before bundling home and auto insurance policies, consider these points too:

  • Insufficient Coverage: Bundling discounts may apply to selected policies so that you can fall short of coverage in some instances.
  • Failing to Find a Good Deal: If you know you can get discounts by bundling policies, you may fail to look for other best deals.
  • Can Be Expensive: Discounts offered by insurers with higher premiums won’t help you save more.

Tips to Save Money When Bundling Policies

  • Review your policies annually to ensure you don’t pay for the coverages you no longer need.
  • Look for additional discounts on good credit scores, completing defensive driving, and installing home security features.
  • Explore different providers and shop for the best quotes.
  • Increase your deductible to reduce your monthly/annual premiums.

Is It Good to Bundle Home and Auto Insurance Policies?

Comparing insurance policies and bundling options can lead to potential cost savings, but it’s crucial to exercise caution as it may only sometimes be the most beneficial approach. Obtaining quotes for bundled and separate policies from several providers is wise to make an informed decision.

Certain situations are well-suited for bundling, while others are not:

  1. Large homeowners insurance policy: If you have a substantial policy covering a high-value property in an expensive area, bundling might offer significant discounts and potential savings.
  2. Poor credit: Individuals with a less favorable credit history may need help securing preferred rates from certain insurers. In such cases, separate low-cost policies from different insurers might be more affordable than bundled options from a single insurer with strict credit requirements.
  3. High car insurance premium: If you have a history of tickets, accidents, or other factors leading to expensive auto insurance premiums, exploring discounted auto insurers could be a more cost-effective alternative to bundled policies from conventional carriers.

Shopping for homeowners and auto insurance is a critical process influencing financial well-being. To avoid unnecessary risks and expenses, comparing rates from multiple carriers before finalizing a policy is essential.

Credible offers a user-friendly platform enabling you to swiftly compare rates from over 40 reputable partner carriers. With the necessary information at your fingertips, you can discover a great deal on the most suitable policy to safeguard your future.

Rely on Us for All Your Personal Insurance Needs

At Hoffman Brown Company, we offer customized personal insurance plans (including homeowners insurance, auto insurance, renters insurance, etc.) matching your needs, circumstances, and budget. Contact us today to get a quote, you can also call us directly at (818) 986-8200!

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