When it comes to spending money, we are always looking for ways to save. Insurance is no exception. With both home and auto insurance, finding ways to save money can seem like an impossible task. But did you know that one of the most common discounts offered by insurance companies is a discount for bundling home and auto insurance?
According to a study done by InsuranceQuotes in 2017, bundling home and auto insurance saves a national average of 16.1 percent on annual premiums. If you’re required to have both home and auto insurance anyway, why not bundle them together to save some money? This is a quick and easy way to put money back into your pocket each month.
Learn about the pros and cons of insurance bundling, also called multi-policy discounts, and some insider tips on the best way to bundle.
Pros and cons of bundling home and auto insurance
- Money savings off annual premiums
Depending on the state you reside in, you can save anywhere from 6.9% (if you live in Florida) to 23.2% (if you live in Mississippi) on annual premiums by bundling.
- Simplified insurance contacts
When you bundle your insurance, you only have one insurance company, one agent and one customer portal. There is convenience and peace of mind in having one person to contact if something goes wrong and one place to manage your accounts.
- Lower deductible
With many insurance companies, if you bundle home and auto insurance, you only have one deductible that applies to both types of insurance.
- Competition avoidance
If you feel that you’ve gotten a good deal with the bundle discount, you may be less likely to shop around for other quotes each year to ensure you’re still getting the best deal.
- Getting lost in the discount
It is easy to get distracted by the discount percentage and fail to pay attention to the price of the insurance. Just because a company offers a higher bundle discount does not mean it is the best deal.
- Affiliate situations
Some insurance companies that offer bundles only provide insurance for part of your bundle and use an affiliate for the other part. That means you may end up working with more than one insurance company, agent and customer portal.
Should you bundle home and auto insurance?
Bundling your insurance policies makes sense in a lot of situations, but it’s not the right choice for everyone. Here’s how to find out if bundling your insurance is a good idea for you.
When you should bundle
- If you’ve got average- to high-priced homeowners insurance and car insurance with a relatively good driving record, it may be in your advantage to inquire with insurance companies about bundle discounts so that you can save a percentage on each policy by combining them into one.
- If competitive home and auto insurance bundle quotes show you that bundling will give you the coverage that is the same or better than what you already have and will save you money off annual premiums, bundling is an ideal option for you.
When you shouldn’t bundle
- If you know you’re the type to bundle and then never check competitive pricing again, bundling may not be the best option for you. Getting a discount does not mean you’re getting the best deal. Insurance companies can increase premiums over time. Check regularly to ensure you’re not spending more than you must.
- Bundling might also not be a good option for you if you have a high-risk auto insurance policy (expensive car or poor driving record). Some car insurance companies specialize in offering cheap car insurance for this type of consumer that is often less expensive than the bundle price.
- You should also not bundle your policies if it means sacrificing or limiting your insurance coverage or if the bundle price is higher than the price of the individual policies combined.
Tips on bundling and how to bundle
We recommend comparing quotes on home and auto insurance yearly, both separately and bundled. You can get most of your home and auto insurance quotes online. If you need assistance, an independent insurance agent can help you get quotes from multiple companies to find the best value option. Also, don’t forget to ask insurance companies what other discounts you may qualify for beyond the multi-policy or bundle discount.
The best home and auto insurance bundles
Here are some of the best bundle offers from insurance companies:
- Progressive: Progressive states that customers who choose a home and auto bundle can save 10%.
- State Farm: State Farm offers savings of up to $854 per year doing a home and auto insurance bundle with them.
- Allstate: Allstate offers up to 10% off auto and 25% off home premiums by bundling.
- USAA: If you bundle home and auto insurance with USAA, it offers up to 10% in discounts off annual premiums.
Note that some of these offers may not be available in every state. Some states might also have additional savings options.
If your insurance provider isn’t on this list, that doesn’t mean that it doesn’t offer bundled discounts. Talk to your provider to see if bundled home and auto insurance is an option your company provides and if it would be beneficial for you.
See Also: A Home Insurance Guide For Multigenerational Families During Covid-19