Every article or post about how to save on car insurance will mention insurance bundling. The idea is that you can get multiple types of insurance from one provider in order to save on premiums.
It also makes keeping track of your coverages more convenient since they all come from one place. A popular combination of coverages that several people bundle is home and car insurance.
The list of benefits of bundling insurance goes on, which is what this post explores in specific detail. At the same time, we’ll also look at how much exactly you can save on insurance by bundling home and auto.
Reasons Why People Bundle Home And Car Insurance
Insurance providers love loyal customers, and a major way that customers can express it is by getting multiple policies and coverages with them.
While not every insurance company may practice insurance bundling, the practice is common across the board.
Here are the reasons why you may want to consider bundling your home and car insurance:
- Savings on insurance premiums – The main reason is simply because it saves money. Policyholders with bundled insurance coverage report they save an average of 25% on their premiums.
- Convenient for managing insurance – With your home and car insurance coming from the same provider, managing them should be easy because you only need to reach out to one place.
- More secure coverage – If you file car insurance claims frequently, the chances of the provider dropping you are less, but they will still raise your premiums. However, you don’t want to take advantage of this. The goal of insurance is to not use it often after all.
Exactly How Much You Can Save by Bundling Home And Car Insurance
25% is just an average of how much you can save by bundling home and car insurance.
How much exactly the discount will depend on the insurance provider.
Based on reports from major insurance companies like Geico, Allstate, Travelers, and State Farm, policyholders with bundled insurance can save anywhere from 13% to 30%. The absolute lowest is around 10%.
Renters’ Insurance Can be Bundled With Car Insurance
Those that rent their living space rather than owning it can also bundle their renters’ insurance with their car insurance. The same can also be said for leased cars or those under a payment plan or loan.
Smartly Bundling Home And Car Insurance
Shopping for home and car insurance bundles is a lot like shopping for any other type of insurance.
You are able to pull as many quotes from as many providers as you please to compare and contrast all your options. Some insurers may also utilize a third-party insurer.
While you will still receive your discounts, it won’t be nearly as convenient as dealing with one primary insurer. The most important thing you can do is hoard those quotes and see who offers the best rates and lowest discounts.
Bundling Home And Car Insurance Isn’t Always Worth it
Since home insurance is more expensive than car insurance, most of the discount is applied to the home policy. But, there are cases where drivers with bundled insurance pay less for auto coverage.
For that reason, people who pay more for home insurance bundle it with their already cheap car insurance.
High-risk drivers with several claims and accidents will not find much of a discount by bundling insurance and will actually be paying more than they already were.
Most of the time, it’s best to keep a separate provider that specializes in high-risk car insurance.
You would be surprised how many local car insurance companies provide low-cost coverage for high-risk drivers. At that point, bundling home and car insurance wouldn’t be worth it.
Other Factors That Affect Your Home And Car Insurance Bundle Discount
The insurance company you decide to go with isn’t the only determining factor of how much a bundling discount will be.
The insurance business is extremely personal, so the insurance providers will take a look at you. Personal factors when it comes to car insurance are your driving record, vehicle, and past claims history.
When it comes to home insurance, factors include the value of your home, your zip code, and even what your home is made from. This is why those with vast home insurance policies opt to bundle with their car insurance.
If this is your case, then bundling your insurance can save you up to $1,000 on your annual premiums. Look into both local and national providers to see how you can start saving today.