You may have noticed that your home insurer asks about your car insurance when you speak to them. They want to know if they could quote for it and they are not shy about inserting that you could save money. You wonder, if it is a good idea to insure everything with the same company and even under one policy? What are the benefits of bundling home and auto insurance? Are there any downsides to it? Which are the best companies for bundling with? These are the questions to be answered below.
Key Benefits of Bundling Home and Auto insurance
Bundling can be highly beneficial for people who have a property and/or home content to insure along with cars. Combination of house and automobile insurance is the most common coverage to be bundled and compliment each other pretty well. On the other end, insurers love policyholders who trust them with all their insurance needs. These types of policyholders clearly give them more business, pay more money and they may actually stay longer with their insurers. That is why insurance companies have no problem with offering multiline discounts.
Administrative Benefits: When you bundle two policies you reduce administrative work for yourself. You now have one insurer and policy to deal with rather than two. This can make things easier for you in more ways than one. On the other hand, you may find it harder to pay the combined premium at once and save installment fees and costs and get full payment discount. If you would prefer to pay by installment in any case, it shouldn’t make much difference.
Better Coverage: When both assets are insured by the same company and under one policy you can cover the gaps in coverage better. For example, you can make sure that your personal gadgets are covered both while they are in your home and car. Otherwise, your vehicle insurance company has no idea what is your home insurer covering and vice versa.
Bundling Discount: Of course, you don’t just bundle because it is neater. You bundle because you can save money. Usually the savings are between 10 – 25% depending on the company and what goes into the bundle. You can save up to 25% with the best home and auto insurance bundle and you may only save 10% with a car and renters insurance bundle. This could mean savings of $200 – $2000 depending on value of your property, content and car, driving and claim history and where you live. This works pretty well for insurers too since they sell more products at once.
There may be some disadvantages to bundled policies as well. First of all, you would be placing all your eggs in the same basket. But if you are not happy with your current insurer you can always find another insurer that will take over the bundled policy. Secondly, your insurer would know too much about you. If you make a claim on the home portion of the insurance policy there is a risk that it may affect your car insurance rates too. It would be worse if you end up making claims on both home and car portions of the bundled policy.
You have already got two insurers to consider for the best auto and home insurance bundle. You can move one of the policy either to home or car insurer. Or you can choose totally new insurer to do the bundling if it is more competitive. Also, it doesn’t matter that you own or rent for most companies in terms of offering the multiline coverage. However, there may be differences in terms of premium as discussed above.
Homeowners and Auto Insurance Bundle
This is the most desirable bundle and you can save big with this because many companies offer both bundling and homeowners auto insurance discounts. Companies like homeowners because they display more responsible behaviors. So, you could save nearly 25% with the best home and auto insurance bundle. About 15% of discounts comes from bundling and 10% from homeownership. It is so easy and advantageous to bundle these two types of policies.
Car and Renters Insurance Bundle
You don’t have to own your home for bundling. Large number of insurers do renters and auto insurance bundle although the discount offered may be more like 10%. Renters are known to make more claims than owners and that is why the discount is a bit tamed in comparison to owners.
There are cases where companies may insist you buy car insurance as well from them. This was once the case in one of the hurricane zones. One company determined that it would not be worthwhile for them to insure homes if they cannot insure cars of the same household as well. So, they wrote to their home insurance policyholders that they would not renew home policies unless they get car insurance as well. And the state authorities ruled this approach acceptable since customers had the option of going somewhere else.
Some insurers may offer larger discounts for people who are bundling because they can save more money themselves thanks to economies of handling larger volume of business. Therefore, a company that is not competitive in both lines of business can suddenly be competitive when you compare car and home insurance bundle quotes.
Best Insurance Companies to Bundle Auto and Home
Usually, most large insurers offer both types of policies and quite a few of them do bundle policies. There are so many top auto and home insurance companies in the US. Even the ones that don’t actually do bundle policy, they still offer discount for buying both policies from one company. Here are some of those top home and auto insurance companies that are known to do bundle policies; Progressive, GEICO, Nationwide and Allstate. It doesn’t mean that the other don’t do it. Most companies do bundle.
So, if you are still interested you can get home and auto insurance bundle quotes from our panel of insurers by entering your zip code above and see how much you can save. You only need to put in some time to figure the most suitable option for your circumstances. If you are going to do it why not do the best home and auto insurance bundle and get the maximum savings?