If you own a car and a home, you need insurance to protect your assets. Many policyholders have insurance coverage with different companies that provide separate policies for their homes and vehicles. However, bundling these two services together can be a real time and money-saver. When you bundle the two types of insurance together, you can easily refer to your policies and, in most cases, get a pretty decent discount to boot. So, is bundling your home and auto insurance suitable for you? Read on to find out more about the process and whether or not it’s the best route to take.
What is insurance bundling?
The concept of insurance bundling is relatively simple. Instead of having a separate car insurance and home insurance policy, you “bundle” the two together. Many major insurance companies offer this option to their customers in exchange for a discounted rate. The national average discount for bundling comes in at around 16 percent. Bundling can also make it easier for you to access both of your policies whenever you need to refer to them or if you want to make a change, such as adding or removing a vehicle or changing your property address. When bundling insurance, you’ll need to put both policies under the same company. If you currently have policies under separate insurance providers, you’ll be required to choose one of them to bundle your policies together. Weigh the pros and cons and what you like and dislike about each company and use that information to help you decide which one will suit your needs the best. If you’re unsure who to choose or where to start, talk to an insurance agent who can help you get the best rates, the best coverage, and the best bundling option.
Most Common Types of Insurance Bundling
While most insurance bundling includes home and auto, there are other options available, too. Here are some of the policies you might be able to bundle together in addition to your home and auto coverage.
Life insurance. If you currently have a life insurance policy under a company that offers other forms of insurance, you can possibly include this in your bundle.
RV insurance. This type of coverage is slightly similar to auto insurance, and most companies will allow you to bundle them alongside your home and auto coverage.
Boat insurance. If you own a boat, ask about bundling the coverage with your home and auto policies.
Other insurance. For those who own unusual vehicles like a snowmobile or ATV, you might be able to bundle your insurance for these items with the rest of your policies.
It’s important to note that if you have homeowner’s insurance, it does not cover flood-related damage. Your flood insurance cannot be bundled with other policies since this specific type of policy is separately owned and operated by the US Government.
How to Get the Best Bundle
Before you decide if bundling insurance is right for you, it’s important to know how to get the best deal. Consider these tips when you shop around to help you find the right plan.
Think about how much coverage you need. You might be paying too much for insurance, especially if your coverage limits are too high. For example, if you own your vehicle outright, you might be able to downsize from a full coverage policy to liability-only. Look at your current coverage limits and coverage amounts to help you decide if you should lower them to help you save.
Shop around. Take some time to compare the costs of insurance with several different companies and agencies. Take a look at the cost of separate premiums and then compare them to bundled discounts that each insurance company offers you. You might be surprised that buying individual plans from cheaper companies is sometimes less costly than if you were to bundle them together with more expensive insurers.
Insurance company or agency. In some cases, an insurance agent can get you a better discount on coverage and insurance bundles. Ensure you know exactly who you’re working with, whether it’s the actual insurance company or an agent before you commit.
Revisit your insurance. Although most insurance holders keep the same policy for years, it’s a good idea to do some price shopping every few years or so. Sometimes, you could be eligible for additional discounts, or you might realize that your coverage needs have changed. Make sure you revisit your coverage plans occasionally to determine whether you need to make changes.
Don’t be afraid to switch. Even if you’ve been with the same insurance company for years, it doesn’t mean that you can’t change to a new one. If another company is offering you a much better price, it’s perfectly fine to transfer your bundle elsewhere.
Pros And Cons of Bundling
Let’s take a closer look at some of the pros and cons of insurance bundling.
Insurance bundles can save you a significant amount of money. Discounts vary by company and policy type, but many policyholders find that they save as much as 16 to 25-percent on their monthly premiums when they choose to bundle. This is the biggest reason that most customers opt for a bundled plan.
Bundling your insurance together makes it easier to access everything in one place. Rather than having several different log-in names and accounts, you’ll be able to see all of the critical information you need about your policies in one convenient location under one umbrella account.
Many people with bundled plans say it’s easier to file a claim this way. If you need to file a claim for any reason, you can do so directly through the insurer. This could be particularly helpful if your home and vehicle were both damaged due to a fire or natural disaster, for example.
If you own your home, bundling is especially beneficial since this type of policy tends to offer the highest level of discounts.
Bundling your insurance plans may discourage you from shopping around in the future. Sometimes, people get too comfortable with their new bundled plan and don’t continue to look around for more discounts or make changes to their policies as their needs change.
Suppose you have a poor driving record (such as one too many accidents or speeding tickets). In that case, bundling might not be as beneficial since your auto insurance will probably continue to have higher premiums regardless of whether you bundle or not.
It’s not always cheaper to bundle. Sometimes, your current policy for each thing you need to cover could still be less expensive than if you were to bundle them together. That’s why it’s so important to make sure you compare prices across several plans and several insurance providers to be sure.
Some companies may continue to lower your premiums as time goes on as long as you don’t file any claims. However, other companies can slowly raise your premiums each year, which could eventually outweigh the savings you received when you started the bundled policy.
The more valuable your vehicle is or, the larger your home is, the less you’ll save since it costs more to replace or repair high-cost items and property.
You cannot bundle health insurance together with any of these other policies.
Is it worth it to bundle home and auto?
You’re probably wondering if bundling your home and auto insurance policies is worth the effort. The answer really depends on the quotes and discounts you’ll receive, and of course, your unique coverage needs. Those who prefer to have all of their insurance information in one place will undoubtedly benefit from bundling. Others, like homeowners or people who have several cars, will also find that bundling is usually highly beneficial. Ultimately, it’s up to you to determine whether or not it’s worth it to bundle these policies together. When in doubt, consult with a professional insurance agent to help you find the best rates and the best type of coverage for you. If you’re happy with your current insurance company, then bundling several products together is usually a no-brainer. You’ll not only get a fairly good discount, but you’ll be able to get the benefits of having a great insurance company that covers more than just your car or home.
Whether you own a home, several cars, an RV, or a boat, bundling insurance can be a smart way to save you time and money. Remember to shop around and compare the costs of several policies separately as well as bundled together. Don’t be afraid to switch companies if you’re unhappy with what you have, and always reach out to your insurance agent if you have questions or need help deciding whether or not bundling is the right move for you.