Cynthia Widmayer has over two years of experience as an insurance and personal finance writer. She covers home, car and life insurance products for Bankrate, the Simple Dollar, and Coverage.com, among others.
The Benefits of Bundling Your Home and Auto Insurance
If you’re a homeowner with one or more vehicles, you may be able to save money on home and auto insurance bundles. As mandated in most states in the US, you need a minimum amount of car insurance to be able to legally drive your vehicle. Home insurance is not a legal necessity but is often a common requirement by mortgage lenders.
The combined cost of auto and home insurance can be expensive, but most insurers offer the option of bundling these policies at a discounted price.
Why you should bundle your home and auto insurance
To bundle your home and car insurance policies and enjoy the perks that come with it, you will need to purchase both the policies from the same provider. If you have these policies with two providers but want to bundle them, any insurance company will be able to guide you on the process.
Bundling insurance policies isn’t a necessity, but according to a 2015 J.D. Power study, almost 65 percent of new homeowners choose to combine their policies because of the convenience and discounts.
When you bundle your policies, you get a few notable benefits:
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.
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 as well.
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 you happy. 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 payments, it may be beneficial to have just one monthly premium for all of your insurance needs. Ask your insurance provider if you can combine the premiums of your car and home insurance policies into one by bundling services.
Best home and auto insurance bundles
Most insurers offer multi-policy discounts, but the savings vary depending on individual providers. The bundling discount is typically applied to your car insurance policy. The following table illustrates the amount you can save by bundling policies with the top insurers in the country.
|Company||Average car insurance premium||Typical bundle discount|
|USAA||$885||Up to 10%|
|Geico||$1,168||Up to 25%|
|State Farm||$1,230||Up to 17%|
|Progressive||$1,373||Up to 12%|
|Allstate||$1,880||Up to 25%|
When shopping for policy bundles, it is important to find the best coverage for the price. If you get a bigger discount with a certain insurer, make sure you are not losing coverage by paying a cheaper premium. The companies listed above have been found to offer the most attractive bundling discounts for the best home and auto coverage.
How to bundle your car and home insurance
If you currently have your home and auto insurance with two separate insurers, 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.
Once you’ve established what coverage you already have, get home and auto insurance bundle 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 not going to see significant savings by bundling, it might make sense to keep your coverage as-is. But if moving to a single home and auto insurance provider will save you a good chunk of money each year, it’s worth it to put in the effort to switch insurance carriers to get all of your policies in one place.
If you’re choosing a new provider to land the best home and auto insurance bundles, 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.
How to save the most by bundling
It’s true that bundling home and auto insurance policies results in savings. However, not every provider is the same and before you switch companies to take advantage of a bundle, it is important to ensure that you are getting the biggest bang for your buck. There are a few ways to do this:
Every major insurer has a multi-policy bundle, but the percentage of savings can differ significantly. To find out the best bundle for you, comparing quotes and coverage options from several companies is a vital step. This is an easy process and can be done over the phone or online via a quotes tool, if available.
If both your house and your vehicle are damaged at the same time, you may have to only one deductible with a home and auto insurance bundle. This might save you a few thousands dollars compared to individual policies.
Shop around every year
Insurance companies update their policies all the time, and rates keep changing frequently. To get the best deal all the time, shop around for home and auto insurance bundles every year and switch providers if you find a better option than the current one.
Frequently asked questions
What is the best home insurance company?
With several major home insurance providers in the market, what suits you best will depend on your needs and budget. However, some providers outshine the others to become the most sought-after home insurance companies based on pricing, customer service and third party ratings.
What is the best auto insurance company?
Regardless of where you live, a minimum amount of car insurance is required for everyone who drives a vehicle. Although individual preferences and coverage requirements will vary, the best auto insurance companies are usually the ones that offer the best policies for the most affordable cost and back it up with excellent customer service.
What policies can I bundle together?
The most common type of bundle is for home and auto insurance policies. But some providers also allow customers to bundle their renters, condo and life insurance policies to a bundle for more savings.