Combining Home And Auto Insurance: A Smart Financial Move

Combining house and auto insurance is known as bundling. This is when you purchase multiple policies from one insurance company. This can often save you money on your premiums and simplify your record-keeping and bill payments.

Discounts and savings

Combining house and auto insurance, also known as "bundling", can lead to significant discounts and savings. Here are some ways in which you can benefit from bundling your insurance policies:

Discounts on Premiums

Most insurance companies offer discounts for purchasing multiple insurance policies. This is known as a multi-policy or multi-line discount. By having more than one policy with the same insurer, you can benefit from significant savings on your premiums. For example, Progressive offers new customers an average discount of more than 20% when they bundle home and auto insurance. State Farm also offers similar savings, with average annual savings of $1,073. These savings can be put towards financial goals, such as an emergency fund, retirement, or a vacation.

Simplified Account Management

Bundling your insurance policies can simplify account management by having just one account, one mobile app, and one place to schedule automatic bill payments. This reduces the likelihood of missing a payment due date, which could cause your coverage to lapse. Additionally, in the event of a claim involving both your home and car, you only need to deal with a single insurance carrier and agent for resolution.

Savings on Deductibles

In some cases, if you have bundled home and auto insurance, insurance companies may charge you only one deductible for events that damage both your home and car. With separate policies from different insurers, you would typically be responsible for paying two separate deductibles.

Other Benefits

Bundling your insurance policies can also provide benefits such as excellent customer service, flexible options for making changes, and the convenience of having all your policies in one place.

However, it is important to note that bundling may not always be the best option. There can be cases where separate policies from different insurers offer greater savings or specialized coverage that better meets your needs. It is essential to compare quotes and consider your specific requirements before deciding to bundle your insurance policies.

Convenience and ease of management

Simplified Account Management

Combining house and auto insurance streamlines the management of your insurance policies. You only need to deal with one insurance company and one agent, making it easier to stay on top of payments and policy details. This reduces the risk of missing a payment due date or lapsing in coverage. With all your policies in one place, you can also avoid the hassle of downloading multiple insurance apps and keeping track of multiple passwords.

Consolidated Billing

When you bundle your house and auto insurance, you'll receive a single bill for all your policies. This simplifies your financial life and makes it easier to manage your budget. You can set up automatic bill payments in one place, and some insurance companies may even offer discounts for doing so.

Enhanced Coverage Options

Insurance companies often provide enhanced coverage options or additional benefits for bundled policies. This could include increased limits on certain types of coverage or added features like identity theft protection. You may also be able to customize your insurance solutions to better fit your unique needs, based on the combined information from your home and auto policies.

Convenience in Claims

In the unfortunate event of a claim involving both your home and car, having a single insurance carrier and agent can simplify the claims process. You'll only need to deal with one company, reducing the back and forth between multiple providers.

Pros and cons of bundling

Pros of bundling home and auto insurance

Bundling insurance policies can bring several benefits. Firstly, it can lead to significant cost savings. Most insurance companies offer discounts for purchasing multiple insurance policies, which can sometimes be more than 15% or even 20% on premiums. This can make a substantial difference to your overall costs.

Secondly, bundling can be more convenient. Dealing with a single insurer means you only need to manage one account, use one app, and remember one password. This can also make it easier to pay premiums and keep track of your insurance policies.

Thirdly, bundling can give you greater confidence. You may already have a good relationship with your insurer, and they are less likely to drop you as a client if you are signed up for multiple policies.

Finally, bundling can save you money if you have to make a claim involving several coverage types. For example, if a tree branch falls on your car and your house, some insurers will only charge you one deductible instead of two.

Cons of bundling home and auto insurance

While bundling can often lead to cost savings, this is not always the case. Some insurers may start with a higher premium and then offer a discount, which may not result in true savings. Over time, insurers may also raise premiums, reducing the value of the initial discount.

Bundling insurance policies may also limit your options and prevent you from finding the best plan for your needs. For example, if you have a record of unsafe driving, your best option for car insurance might be a company that specializes in high-risk drivers, but they may not offer home insurance.

Additionally, bundling can make it less likely that you will shop around for better deals in the future. It can be easier to stick with the same insurer, even if your premiums are rising, because it saves time and effort. This means you may end up paying more than you need to.

Finally, while bundling can save you money on deductibles, it may not always be the cheapest option overall. In some cases, it may be cheaper to buy separate policies from different insurers, even after accounting for the bundling discount.

How to bundle insurance policies

Bundling insurance policies is when you purchase multiple types of insurance policies from the same provider. This is also known as multi-policy or multiple-line discounts.

Benefits of bundling insurance policies

There are several benefits to bundling insurance policies:

• Cost savings: Many companies offer discounts for bundling policies, which can lead to significant savings on your insurance premiums. The more policies you bundle, the more you can save.
• Streamlined billing and policy management: With bundling, you only have to deal with one insurance provider, which simplifies the process of paying bills and managing policies. You also only need to contact one company if you have a claim.
• Single deductible: In some cases, if your vehicle(s) and home are damaged in the same event, you may only need to pay one deductible instead of two.
• Gather your current insurance information: Have your current policy details ready so that you can compare it with new quotes.
• Get quotes from multiple providers: Look for popular insurance providers that offer coverage in your area of residence and request quotes for bundling policies.
• Compare the quotes: Evaluate the quotes by considering not just the price but also the coverage offered. Consider working with an agent who can help you understand the different types of coverage.
• Make your decision and switch: Choose the insurance bundle that offers the best combination of affordable pricing and comprehensive coverage.

Tips for maximising savings when bundling

• Compare quotes from several companies: Different insurance companies will offer different rates and discounts, so it's important to shop around to find the best deal.
• Take advantage of other discounts: In addition to bundling discounts, you may also be eligible for other discounts such as a safe driver discount, loyalty discount, or low-mileage driving discount.
• Review your policies regularly: Staying with the same insurer can earn you loyalty discounts, but it's also a good idea to periodically shop around to see if you can get a better deal. Life events such as getting married, having a baby, or moving to a new home are good times to review your insurance policies.
• Improve your credit score: In some states, insurance providers use your credit score to determine your rates, so improving your credit score can help lower your insurance premiums.

Things to consider before bundling

While bundling insurance policies can offer many benefits, there are also some things to keep in mind:

• Limited coverage and discount options: You may not find a carrier that offers all the endorsements and discounts you're looking for.
• Products may be sold by third parties: In some cases, a company may partner with another insurer to offer a "bundled" policy, but this may not provide the same level of convenience as having all policies with a single insurer.
• Might not result in the lowest rates: Bundling with your current insurer may not always get you the best rates. It's important to compare quotes from multiple companies to find the most competitive rates.

By following these steps and considerations, you can effectively bundle your insurance policies and take advantage of the cost savings and convenience that bundling offers.

Best insurance companies for bundling

Combining home and auto insurance is known as "bundling". Here are some of the best insurance companies for bundling:

State Farm

State Farm is the largest property and casualty insurer in the US based on market share. It offers a bundling discount of up to $1,273 per year, or 25% on average. State Farm has a wide range of coverage options, including life insurance, home insurance, and auto insurance. It also has excellent customer service and is available nationwide.

Allstate

Allstate is a close contender, offering a bundling discount of up to 25%. They provide insurance across all 50 states and Washington, D.C., and have a variety of endorsements for policy customisation. However, they have scored below average in overall customer satisfaction.

Amica

Amica offers a bundling discount of up to 30% and has excellent customer satisfaction ratings. They provide a wide range of coverage options and the opportunity for dividends of up to 20% of your annual premium. However, their insurance is not available in all states.

Farmers

Farmers Insurance offers an average bundling discount of 20% and has numerous other discount opportunities. They provide local agents for personalised service but have scored below average in customer satisfaction.

Nationwide

Nationwide is available across most states and offers bundling discounts of up to 20%. They have an A+ financial strength rating but have scored below average in customer satisfaction.

Frequently asked questions