When it comes to car and home insurance, bundling your insurance can save you money. Most insurance providers offer multi-policy discounts for people who want to get multiple types of insurance with the same provider. But how do you know if you are one of the people who will save money, and how do you know which providers offer the best discounts for bundling insurance? This article covers the specifics of home and car insurance bundles, and gives in-depth information on the benefits of bundling and who the best providers are.
Home and car insurance bundles
Car insurance is required in nearly all states in the U.S., though coverage limits will vary by state. Your car lender may also require higher coverage limits to protect their interests. The most common types of car insurance you’ll be required to carry are bodily injury liability and property damage liability. If you are required to carry insurance by your lender, you may also need to carry collision and comprehensive coverage, as well as uninsured motorist coverage.
Homeowners insurance, on the other hand, is not necessarily required by the state, but will likely be required by your mortgage lender. The most common types of homeowners insurance coverage people will need will protect the structure of the home as well as property inside the home. It typically does not cover flood damage, but that and other optional coverage can usually be added.
If you own your home and have a vehicle, you may qualify to receive discounts for bundling these services with your insurance provider. That means you’ll get your car insurance and home insurance with the same provider, and usually have one monthly payment.
Benefits of bundling your car and home insurance
The most lucrative benefit of bundling your car and home insurance is the savings you’ll get with a multi-policy discount. Nearly every insurance provider offers a discount for having multiple policies, so it’s a good idea to take a look at your policies to see what benefits you’re already getting.
Another benefit of having all of your insurance with one provider is the level of service you will receive. While insurance companies are notoriously conservative in their payouts, the best insurance providers will value your business and provide top-notch customer service to keep it. The more coverage you have with an insurance provider, the more valuable your business is to them. Take advantage of that and bundle your policies for maximum service.
If you are trying to consolidate your monthly payments, it may be beneficial to have just one monthly payment that you make for all of your insurance needs. Ask your insurance provider if you can consolidate your payments into one monthly payment by bundling services.
How to bundle your car and home insurance
Bundling your car and home insurance is relatively simple. The first thing you want to do is examine your current policy to see what coverage you have, and take note of any additional coverages you have that may or may not be offered by a different company. This is the best way to compare apples to apples.
Once you’ve established what coverage you already have, get car and home insurance quotes from your current providers, as well as two to three additional insurance providers. Take time to review each quote carefully to ensure you are getting adequate coverage for your premium.
After you’ve reviewed each quote carefully, you should be able to choose the car and home insurance quotes that work best for your needs. If you’re choosing a new provider, they will instruct you on how to cancel your old insurance so you can easily switch over without having to pay extra money for premiums you don’t need.
Should you bundle your insurance?
Whether bundling insurance is the best option for you will depend on your personal situation, but it is a common practice across multiple groups of people. For example, a 2015 J.D. Power study indicates that 65% of Generation Y homeowners bundle their insurance compared with 78% among all other generations. That same study indicates that people who bundle are happier with their insurance than people who do not.
If you are a homeowner and you own a car, you are in a prime position to save money on your car and home insurance by bundling. And if your family has more than one car, or more than one home, you can save even more money by bundling those policies together.
Best car and home insurance bundle providers
The best car and home insurance quotes are provided by the top insurance companies in the United States. They offer the best discounts for car and home insurance bundles. The following table offers a glimpse into the bundle discounts offered by some of the leading insurance providers in the United States as of a 2019 study by U.S. News.
|Average Car Insurance Premium||Typical Bundle Discount|
|State Farm||$3,260.00||Up to 17%|
|Progressive||$4,035.52||At least 5%|
|Allstate||$4,887.95||Up to 15%|
|USAA||$2,537.30||Up to 10%|
Your car and home insurance quotes will vary depending on your age, driving record, claims history, type of car or home and a few other factors, sometimes including your credit history.