Bundling Auto And Motorcycle Insurance: Worth It?

Yes, you can bundle auto and motorcycle insurance. In fact, most major car insurance companies offer motorcycle insurance and bundles, and buying both policies together can earn you bundling discounts of up to 20% off your premiums.

Bundling your auto and motorcycle insurance can save you money, often with a 5% or 10% discount, and it can also be more convenient, simplifying your payments and giving you access to both policies with a single call or login.

Discounts and savings

Bundling your auto and motorcycle insurance can save you money. You can typically earn a discount of 5% to 10% on your annual premium, although some insurers offer even higher discounts of up to 20%. This can add up to hundreds of dollars in savings each year.

For example, GEICO offers a discount of up to 5% for bundling your auto and motorcycle insurance, and their auto insurance rates are already 23% cheaper than the national average. Allstate offers a 10% discount on your auto insurance for combining policies, and an additional discount if you switch your motorcycle insurance from a competitor.

Some insurers offer extra discounts for certain types of drivers. For instance, Liberty Mutual offers an experienced rider discount, lowering your premium if you've had your license for more than three years. GEICO offers a 20% discount for active Motorcycle Safety Foundation instructors.

You can also save money by taking advantage of other discounts offered by the insurer. For example, Allstate offers anti-lock brake, anti-theft, early signing, responsible payer, smart student, and new-car discounts. American Family offers loyalty, early bird, safe driving, good student, and auto-pay discounts.

Even if your insurer does not offer a bundling discount, you may still be able to save money by combining policies. Having multiple policies with the same company can make it easier to access and manage all your policy documents, and you only need to make payments to a single company. This reduces the chance of forgetting to pay your bill.

However, bundling is not always the best option. It's important to shop around and compare rates and coverage options from multiple insurers. In some cases, you may find that you can get a better deal by purchasing policies separately or by choosing a different type of coverage, especially if you have a classic or high-end motorcycle.

Convenience and ease of access

Simplified Payments and Policy Management:

Bundling your auto and motorcycle insurance streamlines the payment process by requiring you to make payments to a single company. This makes it easier to keep track of payment due dates and manage your finances effectively. Additionally, you can quickly resolve any queries or concerns about your premium by contacting just one insurance provider.

Consolidated Policy Documents:

Having all your insurance policies in one place makes it more convenient to manage your coverage. You can easily access and review all your insurance information, including coverages, exclusions, and deductibles, through a single login or by contacting your insurance company. This simplifies the process of checking coverages, updating policies, and locating important documents.

Efficient Claims Process:

With bundled insurance, you won't have to worry about which insurance company to contact when filing a claim. You can access both your auto and motorcycle policies through the same provider, making the claims process less stressful and more efficient. This is especially beneficial if you need to file claims for both your car and motorcycle simultaneously, as you can manage everything in one place.

Single Deductible for Multiple Vehicles:

In some cases, bundling your auto and motorcycle insurance can result in paying only a single deductible when filing a claim for damage to both your car and motorcycle. This can save you money and simplify the claims process, as you only need to worry about one deductible amount.

Access to a Range of Coverage Options:

When you bundle your insurance, you gain access to a variety of coverage options for both your car and motorcycle. This includes standard coverages, such as liability coverage, comprehensive coverage, and collision coverage, as well as additional endorsements like custom parts coverage, roadside assistance, and more. You can choose the coverages that best suit your needs and ensure you have the protection you require for both your vehicles.

In summary, bundling auto and motorcycle insurance offers convenience and ease of access by simplifying payments, policy management, and the claims process. It also provides access to a range of coverage options and can result in paying a single deductible for multiple vehicles, making it a worthwhile option to consider.

Pros and cons of bundling

Pros of bundling auto and motorcycle insurance

Bundling auto and motorcycle insurance can offer several advantages. Firstly, it can lead to significant cost savings. Many insurance companies provide discounts when multiple policies are combined with the same provider, which can result in lower premiums for both types of insurance. These discounts can range from 5% to 25%, depending on the company and other factors such as coverage amount and location.

Secondly, bundling simplifies insurance management. Dealing with a single insurance company means having only one set of login credentials to manage policies, making payments more convenient, and providing a central location for all insurance-related information. This streamlined approach can be especially beneficial when filing claims or seeking assistance.

Additionally, having all policies with one agent or company enables them to have a comprehensive view of your insurance needs, allowing them to identify any gaps in coverage and ensure you are fully protected.

Cons of bundling auto and motorcycle insurance

While bundling can provide cost savings, it is not always the most financially advantageous option. In some cases, the savings from bundling may not outweigh the benefits of your current policies, especially if you have a good deal with your current providers.

Moreover, bundling can make it less likely that you will shop around for better rates or switch providers. Over time, insurers may raise premiums, reducing the value of the initial discount. They may also start with a higher premium when offering a discount, resulting in minimal or no actual savings. Therefore, it is important to regularly compare rates and coverage options to ensure you are getting the best deal.

Another potential downside is the time and effort required to bundle policies. To receive an accurate quote for bundled insurance, you may need to speak with an agent and provide detailed information, which can be more time-consuming than obtaining a standalone policy quote.

Finally, bundling may limit your insurance options, especially if you have specific needs for your auto or motorcycle insurance. Different insurers have varying strengths and weaknesses, and by bundling, you may need to compromise on certain coverages or services that are important to you.

When not to bundle

While bundling auto and motorcycle insurance can often save you money and simplify your payments, there are some situations in which bundling may not be the best option.

Firstly, if you require a specific type of motorcycle insurance, such as agreed-value coverage for a classic or high-end motorcycle, bundling may not be suitable. In such cases, you may need coverage beyond market value, which may not be included in a standard bundle.

Secondly, if you have a transport trailer for your motorcycle, you may want to consider separate policies to ensure you have the necessary coverage for both your bike and trailer.

Thirdly, if you already have separate coverage for your car and motorcycle, switching to a bundled policy should be done carefully to avoid a lapse in coverage. Ensure that you have overlapping coverage for at least one day when transitioning to a new insurer to prevent potential increases in future insurance rates.

Lastly, even though bundling can often result in savings, it is important to shop around and compare rates and coverage options to ensure you are getting the best deal. You may find that, in some cases, purchasing policies from separate insurers may result in lower costs or provide you with more comprehensive coverage for your specific needs.

Therefore, while bundling auto and motorcycle insurance can be advantageous, it is not always the best option. It is essential to consider your unique circumstances, compare different insurers, and choose the coverage that best suits your requirements.

How to bundle

Bundling your auto and motorcycle insurance is a straightforward process that can save you money and simplify your payments. Here is a step-by-step guide on how to bundle your auto and motorcycle insurance:

Step 1: Assess Your Needs

First, determine how much coverage you require, taking into account factors such as your driving and riding habits, your location, and the type of bike and car you own. Consider whether you need specialised motorcycle coverages like lay-up insurance, which allows you to put most of your coverage on hold while maintaining comprehensive coverage during the winter months when riding may be dangerous or impossible.

Step 2: Gather Information and Collect Quotes

Don't just settle for bundling with your current insurer; instead, explore multiple options to get the best rates. Collect information about your car and motorcycle, and then obtain quotes online or over the phone. Note that some companies require you to go through an agent, and bundling motorcycle insurance may require a phone call as it is more specialised than car insurance.

Step 3: Compare Quotes and Consider Features

While price is a crucial factor, also consider the features offered by different insurers. For example, some companies may cover equipment or your helmet, or offer coverage for custom equipment. Choose a balance of price and optional coverages that suits your needs.

Step 4: Purchase Your Bundle

Once you've found the right balance of price and features, go ahead and purchase your bundle. Remember to maintain continuous coverage to avoid a lapse in coverage, as this can lead to increased future insurance rates.

Tips for Bundling:

• Compare quotes from multiple insurers to find the best rates and features for your needs.
• Avoid sacrificing coverage for price. Ensure that the bundle you choose provides the specialised coverage you require.
• Consider the convenience of having all your insurance information in one place and dealing with a single company for all your insurance needs.
• Keep in mind that bundling discounts can vary, so shop around to find the best discount for your desired coverage.

Frequently asked questions