How much can Bundling Home and Auto Insurance save you? I want to believe that you are aware that you will spend so much on your home and auto insurance premiums when you use different insurance companies to insure them. The premium becomes overbearing when you add them up. Luckily, there is a quick way to cut down your expenses on the insurance premium and that is by using a simple trick.
What is the simple trick that has saved most Americans at least 10-25% of expenses every month?
It is simple. They bundle home and auto insurance with the same insurance company and in return, they get a huge discount. Lol. I believe you guessed that too when I asked the question.
Okay! bundling home and auto insurance is not a difficult task for you to do, I will show you how to do that, and why you should do that. We will also show you why you also shouldn’t do insurance bundling on the other hand and the best companies for insurance bundling.
Wow!!! That’s a whole lot of information to be gotten to help you save more. Take your time and read along if you want to know how to use this trick to save by bundling auto and home insurance.
What Does Bundling Home and Auto Insurance mean?
Bundling is just when you take out multiple insurance policies from the same insurance company.
Example: You took a Statefarm auto and home insurance bundle, which means that you insured both your car and house with a Statefarm insurance company. Then the insurance company will reward you by giving you a discount.
So How Does Home and Auto Insurance Bundling Save Money?
When you take the option of bundling insurance policies, the company rewards you with a discount which could be as high as 20%. This helps to reduce the premium that you could have paid for both products if you had insured them with different companies.
Read More: How to Buy A House With Bad Credit But Good Income
What Types of Insurance Policies can I Bundle?
The most common insurance policies that are bundled are home and auto insurance policies.
Notwithstanding, they are several few other products that can be bundled as follows;
- Life insurance
- Travel insurance
- Disability cover
- Accidental death
- Boat Insurance
Why should I Bundle Car and Home Insurance-Benefits
There are a whole lot of benefits you can derive by just bundling car and home insurance. Even though it helps you save a lot of money, are they other reasons why you should bundle car and home insurance? Yes, let us see them below;
It saves you more monthly premiums: A bundling discount can go as low as 5% or high as 25%. It all depends on the car and home insurance companies. State farm offers 25% discount while USAA gives 6%. The average saving is 14% for bundling insurance. Although insurance companies like Allstate, Farmers, and Nationwide offer you 15% on average.
- Single Deductible Benefit: You should always double-check this claim when you are considering any insurance company quote. Sometimes, the claims are not true as the company can merge the deductibles.
- Convenience: When you need to make any changes to your insurance policy, you just have only one address you’d have to deal with.
- Simplicity at Renewal: Wouldn’t it be nice to only have to review your policies once a year, instead of twice or more? By bundling your policies, they will likely renew at or around the same time. This makes reviewing them significantly easier for you! Especially true if your policies are not with the same brokerage and you are required to relay new or updated information to multiple companies.
- Better Security: Insurance companies may “fire” clients that they feel are too high-risk. If you have too many claims, for example, they may decide the premium isn’t worthwhile for them. If you have more than one policy with them, dropping you becomes more difficult.
- Saves Time: Only having to deal with one company saves you time when you’re in a rush.
Why you Might not Bundle Your Insurance
In as much as the benefits are juicy, there are also some red flags that you should look at when you are considering bundling your car and home insurance. Here are some worthwhile thoughts;
- Don’t Focus only on Discounts: Sometimes, insurance companies use the discount as bait to tie you down to oppressive terms and conditions. So consider the terms in the policy while also looking at the discount.
- Compare other Discount Rates: Avoid getting overwhelmed by the first discount rate you get. Take your time and check other rates as they differ.
- Affiliates: Some companies provide deals in conjunction with other businesses. If this is the case, it’s not truly a bundle. Instead, you’re buying your coverage through an affiliate. Both policies will operate separately, so you’ll have none of the convenience you expected.
Read More: Home Loans With A Credit Score of 500: What you should Know
Where Will You Find The Best Homeowners And Car Insurance Bundle?
There are a few companies that offer home and auto insurance bundles, but it all depends on your plan. We took our time to check around the web for home and auto insurance bundle reviews to find the best companies for you to consider.
More so, we checked some homeowners and auto insurance bundle quotes to see the one that has the best for you to consider.
|Company||Average Home Insurance Cost Per Month||Average Auto Insurance Cost Per Month||Discounts for Bundling||Average Premium for Both with Separate Policies||Average Premium When You Combine Policies||Amount You Can Save per Month|
|Allstate||$140||$198||Up to 25% of home and 10% off auto||$338||$283||$55|
|American Family||$100||$115||Up to 20% off home and 29% off auto||$215||$161.65||$53.35|
|State Farm||$133||$124||Up to 17% overall||$257||$213.30||$43.69|
|Progressive||$150||$130||Up to 12% overall||$280||$246.40||$33.60|
It is obvious from the table above that the average American spent $1,450 on auto insurance in 2018. A simple auto insurance bundle could have saved at least $171-$414 in a year. That’s the secret.
Is Bundling Insurance Worth It?
If you are spending more on home and auto insurance, then you need insurance bundling. It is a good financial practice not to pay so much on insurance especially when you stay in states with high insurance premiums.
Tips To get the best possible bundling discount:
- Check who the insurers you’re dealing with are. Will the cover be provided by the same company or by the firm and affiliate? If the latter, is it a good idea to bundle home and auto insurance when you know little about the affiliate or its history?
- Shop around for quotes before you bundle homeowners and car insurance. Ask for standalone and multi-policy quotes so that you can see if combining the coverage is worthwhile.
- Don’t get complacent with one insurer. Set aside time at least once a year to review your contracts. Repeat the process of asking for standalone and bundled estimates. Get the estimates in writing as a bargaining tool. If your existing insurer doesn’t sweeten the deal, move on.
FAQs On Bundling Home and Auto Insurance
Q: In what cases is it better not to bundle home and auto insurance?
ANS: If you have bad credit, traffic violations, or reside in a state where insurance rates are high, it may work out better to have separate policies. To be sure, shop around – ask for bundled rates and standalone policies.
Q: Can you bundle renters and auto insurance?
ANS: Yes, you can bundle the two. Whether it’s a wise idea depends on your credit rating and driving record.
Q: How much can you save if you bundle home and car insurance?
ANS: The average person saves 16.1% overall. That equates to the $16 per $100 premium that you pay. It doesn’t sound like much in one month, but it adds up. Over a 10-year term, you’ll save $1,920 without reducing your coverage.
Who has the best home and auto insurance bundle?
American Family provides outstanding value for money along with a sizeable discount of up to 29%. As always, it pays to do a little more research on your own before settling for one plan or the other.
Read More: How to Buy A House With Bad Credit But Good Income
In most cases, choosing to bundle home and car insurance makes sense. This is because insurance companies are usually willing to give you a discount when you have multiple products with them.
It costs nothing more than a little time to get quotes from various companies. Shop around and compare bundled rates with un-bundled ones to ensure you make the right decision.
If you don’t see much of a difference, consider checking your FICO score, claims record, and driving record. Excessive claims, a low FICO score, and traffic incidents all count against you. If this is the case, aim to improve these issues over the next six months and try again.