Shopping for the best auto and home insurance bundle for you! Beyond potentially generous discounts, insurance buyers ought to look at a wide range of factors before picking out the right vendor for them.
Bundling your home and auto insurance is a great way to save money. In fact, shoppers can expect to get a discount in some cases of up to 20%, when bundling their home and auto policies.
When looking for an insurer, be sure to pick a vendor with strong customer service, plenty of perks and coverage options, including multi state availability along with other discount features.
The best auto and home insurance bundle is typically one of the largest offered by insurance companies, which means that if you qualify, you might see significant savings on your insurance premiums. While the policies are ‘bundled’ with the same carrier, they generally aren’t actually covered on the same policy and will usually have different policy numbers.
Key takeaways
- Most insurance companies provide bundling discounts when policyholders purchase more than one policy type with the same carrier.
- Although bundled policies are from the same carrier, they typically are independent policies with separate policy numbers.
- Typical bundling discounts with many top carriers hover around 20 percent.
- Some insurance bundles have the added benefit of sharing an online billing account to make managing bill payments easier.
Best home and auto insurance bundles
Most property and casualty insurers that sell both auto and home insurance offer multi-policy, or multi-line, discounts, but the savings vary depending on individual carriers. You will typically see savings on both policies, which may be listed as a dollar amount or percentage.
The right insurance bundle may look different for everyone, and you might have considerations beyond just cost. Searching for the best bundling opportunities will often go beyond simply the largest potential savings, but ought to also involve the consideration ease of access through digital tools, strong customer satisfaction scores and policy availability across different lines of business.
When shopping for policy bundles, it is important to review your quotes carefully. Finding a competitive price for your insurance is a priority for many, but low premiums may not be the only critical factor. You may also want to consider policy features, coverage levels and digital tool availability for each home and auto quote you receive. Since you may be placing more of your assets under the same insurance company, factors such as customer satisfaction scores and financial strength ratings may be even more critical.
How does a home and auto insurance bundle work?
Bundling insurance refers to the process of purchasing multiple types of insurance policies from the same insurance provider. For example, you could buy home, auto and life insurance from the same company, and so on with other policies, if available. One of the main benefits of bundling is that companies often offer discounts if you hold several policies with them, so it can save you money. In fact, most carriers will automatically add a multiple-policy discount on both policies, allowing you to save money on your total cost of insurance.
While bundling usually refers to home and auto insurance, you may be eligible for a multiple policy discount if you purchase other types of insurance from the same insurer, like an RV, boat or umbrella policy. And while the total bundling discount varies by company, the discounts offered for bundling your insurance policies are often some of the best ways to save on your policy premiums.
What are the benefits of bundling your home and auto insurance?
Bundling your auto and home insurance can be a great way to generate significant savings on both policies and make your insurance more convenient to handle with a single insurer. If you own a home and have a car, getting quotes for both policies with the same insurer could be well worth your time and lead to reduced premiums.
How to bundle your car and home insurance
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. If you aren’t sure how to shop for home and auto insurance, this is a good place to start. Determining if you are looking for exceptional customer service, a highly rated mobile app or certain coverage types, for example, can help you decide which companies to get quotes from. It may also be beneficial to work with a local insurance professional who can provide you with guidance throughout this process.
- Get home and auto insurance quotes from multiple companies. Once you know what qualities and coverage you are looking for, you can request auto and home quotes from several different companies that offer bundling discounts.
- Review each quote carefully. Assess each auto and home quote carefully to determine if the coverage, premium and details included are accurate and fit your needs. Also make sure the quotes highlight the amounts of the discounts you will receive for bundling.
- 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.
How to save money when bundling auto and home insurance
Bundling coverage with the best home and auto insurance companies may save you money, but there are other steps you can take to potentially maximize your premium savings.
- Get quotes from several insurance companies. This is important, as every carrier has a different process for setting rates. For instance, your bundling discount could be 25 percent with a carrier, but if the underlying rates are higher than other insurers, you could end up saving more with a carrier that quotes a lower base premium for you — even if their bundling discount is smaller.
- Take advantage of other discounts. Having a multi-policy discount on your auto and home insurance does not preclude you from applying other discounts to maximize your savings. Utilizing other discounts that you qualify for might help you save additional money on your premium.
- Increase your deductibles. Your home policy’s standard deductible is the amount you will pay out of pocket if you file a claim for a covered loss to your property. Deductibles work a little differently on auto policies. If you have full coverage auto insurance, your policy has two deductibles: one for comprehensive and one for collision. Raising your home or auto deductibles can significantly lower your premium. However, it means you will need to pay more out of pocket if you file a claim for covered home or vehicle damage, so be sure to choose a deductible level you can afford.
- Review your policies when life events happen. Staying with the same insurer for several years can be a good way to earn loyalty discounts, but occasionally shopping your coverage with other carriers can help you learn if you are still getting a competitively-priced bundle. It can be helpful to shop for insurance after significant events in your life that tend to alter your finances, like getting married or divorced, having a baby or moving to a new home.
