Best Home And Auto Insurance Bundles: Save Money

Bundling home and auto insurance can be a great way to save money and simplify your policy management. Most insurance companies provide bundling discounts when policyholders purchase more than one policy type with the same carrier.

According to our research, the best home and auto insurance bundles are offered by the following companies:

- State Farm

- Erie

- Nationwide

- Allstate

- USAA

- American Family

- Amica

- Auto-Owners

- Travelers

- Progressive

Pros and cons of bundling home and auto insurance

Pros

The main benefit of bundling home and auto insurance is that it can save you money. Most insurance companies offer discounts for purchasing multiple insurance policies, which can add up to significant savings. For example, Progressive offers an average saving of over 20% when bundling home and auto insurance, while State Farm customers save on average $1,073 annually.

Bundling insurance can also make it easier to manage your insurance policies. You only have to deal with one insurance company, which means you only need to download one app and set up one account. This also means you only have to make one payment, reducing the chance of missing a payment.

Additionally, if a covered event damages both your home and your car, some insurance companies will only charge you one deductible for such events, rather than two separate deductibles with different insurers.

Cons

While bundling insurance can often save you money, this is not always the case. It is important to shop around and compare quotes from different insurers, as you may find cheaper separate policies that offer better coverage.

Over time, insurers may raise premiums, reducing the value of the initial discount offered. They may also start with a higher premium when offering a discount, so the savings might not be as much as you think.

Another disadvantage is that bundling insurance may prevent you from shopping around and switching providers to get a better price. It can be more hassle to switch multiple policies, so people are often less likely to bother. This means you may end up paying more than you need to.

Finally, if you have specialized insurance needs, you may not find one insurer that offers the combination of home and auto coverage that you want. 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 does not offer home insurance.

How to find the right home and auto insurance bundle

Bundling your car and home insurance is relatively easy. Although it may sound like you are getting a combined auto-home insurance policy, this is typically not the case (although some companies do offer auto and home policies written under a single policy number). You will generally need to purchase your auto and home insurance with the same insurer to qualify for a bundling discount. Here are some steps you can take to bundle your policies:

• Decide what you want from your insurer. Before you start requesting quotes, you should probably figure out what you’re looking for in an insurance provider. For instance, you might be shopping for a company that has a vehicle telematics program or you may want one that writes the cheapest policies. If you’re not sure what you want, you could also search for local companies and speak to an insurance professional.
• Get home and auto insurance quotes. Again, it helps to know what insurance products you need. This way, you can select several insurance providers that have bundling discounts and request quotes. Use the same coverage types and amounts for each policy to make it easier to compare quotes.
• Review each quote carefully. If the coverage types and amounts are the same, it shouldn’t be as difficult to compare policies. You’ll probably want to pay attention to the premium price, the amount of the bundling discount, and any perks or special features that the insurance company provides.
• Choose a company and start your policies. Once you have decided which insurer suits your home and auto insurance coverage needs best, your insurance professional can walk you through the steps to purchase your policies.
• Cancel your previous insurance policies. If you already had home and auto insurance coverage with other carriers, you will need to cancel your existing policies if you plan on placing them with a single insurer. When switching to a new carrier, it is typically best to wait to cancel your prior policies until you know the effective date of the new policies, so you can avoid a lapse in coverage. As home insurance is typically paid through your escrow account, you may need to communicate with your lender about the coverage switch.

How to save money when bundling auto and home insurance

Bundling your home and auto insurance can be a great way to save money, but it's not always the best option. Here are some tips on how to save money when bundling your home and auto insurance:

• Shop around for quotes: Compare quotes from multiple insurance companies, both for bundled and separate policies. By doing this, you can find the option that offers the best coverage at the lowest price. Don't forget to consider the quality of the insurance company and the ease of managing your policies.
• Look for discounts: In addition to bundling discounts, insurance companies offer a variety of other discounts that can help you save money. For example, you might be eligible for a safe driver discount, loyalty discount, or low-mileage driving discount.
• Review your policies regularly: It's a good idea to review your insurance policies when significant life events occur, such as getting married, having a baby, or moving to a new home. Staying with the same insurer for several years can earn you loyalty discounts, but occasionally shopping around can help you find better rates.
• Improve your credit score: In most states, insurance companies use your credit score to determine your rates. By improving your credit score, you may be able to get lower insurance premiums. This can be done by paying down debt, making payments on time, and increasing your credit limits.
• Understand the drawbacks of bundling: While bundling can offer convenience and savings, it also has some drawbacks. Bundling may not always offer the lowest rates, especially if you have specialized insurance needs or live in a state with high insurance rates. Additionally, it can discourage price shopping, as it's easier to stick with the same insurer year after year.
• Consider your specific needs: Evaluate your individual needs and circumstances when choosing an insurance company. For example, military members and veterans may find better deals with insurers that cater specifically to them. Consider factors such as coverage options, discounts, customer service, and financial strength when making your decision.

How does bundling work?

Bundling is the process of buying more than one policy from the same insurance company, usually at a discounted rate. Insurance companies tend to like bundling because they get more of your business, while you get a lower rate plus the convenience of buying everything in one place.

Bundling isn't just for home and auto insurance. Depending on the company, you may also be able to bundle other types of policies such as umbrella, boat, RV or life insurance.

The benefits of an auto and home insurance bundle include:

• Lower premiums: A multipolicy discount could save you as much as 30%, according to some insurer websites, depending on the company and where you live.
• Easier to manage multiple policies: It's typically easier to manage multiple policies when they all come from the same company.
• May help you maintain your insurance coverage long-term: If you've made auto insurance claims or gotten tickets, having other policies with the same company can make it less likely the insurer will drop you because of those incidents.

The drawbacks of an auto and home insurance bundle include:

• Encourages a "set it and forget it" mentality: Automatically renewing year after year with the same company could come at a cost. You're less likely to check out competitors' rates if you have to switch two policies instead of one.
• Prices tend to increase at policy renewal time: You might end up paying well beyond what you would pay with another company if you don't check rates online or by phone.

The benefits and drawbacks of bundling

Bundling home and auto insurance can be a great way to save money and simplify your insurance management. However, there are also some potential drawbacks to consider. Here are the benefits and drawbacks of bundling your home and auto insurance:

Benefits:

• Cost Savings: Bundling your home and auto insurance can often result in significant cost savings. Many insurance companies offer discounts, also known as multi-policy or multi-line discounts, when you purchase multiple policies from them. The discounts can range from 5% to 25% or more on your premiums, depending on the company.
• Simplified Account Management: By having your home and auto insurance with the same company, you only need to deal with one provider, download one app, and manage payments in one place. This simplifies your insurance management and reduces the risk of missing a payment due date.
• Single Deductible: In some cases, if a covered event damages both your home and car, bundling your insurance may allow you to pay only one deductible instead of two separate deductibles with different insurers.
• Insurance Security: Having multiple policies with the same company may reduce the likelihood of being dropped as a customer if you need to file multiple claims.

Drawbacks:

• Limited Plan Options: Bundling may not be feasible if you have specialized insurance needs. There may not be a single insurer that offers the specific combination of home and auto coverage you require.
• Potential for Higher Costs: While bundling typically reduces premiums, it doesn't always result in the biggest savings. Separate policies with different insurers may offer lower rates, especially if you qualify for other discounts like good grades or a defensive driving course.
• Discourages Shopping Around: Once you have multiple policies with one insurer, you may be less likely to shop around for better rates, potentially missing out on savings. It's important to compare prices regularly to ensure you're getting the best deal.
• Affiliate Issues: In some cases, bundled plans may be provided through affiliates, meaning you lose the convenience of dealing with a single insurance company. If the affiliate relationship ends, you may need to shop for a new insurer.

In conclusion, bundling your home and auto insurance can offer significant benefits in terms of cost savings and simplified management. However, it's important to carefully consider your specific needs, compare quotes from multiple insurers, and be aware of the potential drawbacks to make an informed decision.

Frequently asked questions