Do you know how to save money on home and car insurance? Bundling your policies can save you 25% a year, reduce the number of bills you have to pay, and consolidate policies under one company.
The best home and auto insurance bundles offer the best pricing and coverage when purchased together. In fact, bundling them made our lists of common auto insurance discounts and common home insurance discounts that you may also want to learn more about to save money.
In today’s article, we will help you decide if you should bundle your policies and how you can find the best pricing and coverage when bundling your home and auto insurance.
Finding the best home and auto insurance bundles
Insurance can be tough to navigate, but you don’t have to do it alone. You should start with comparing the rates of individual policies through several providers. Some companies may offer better deals on auto insurance, while others are more affordable on homeowners.
We are happy to compare your current home and auto policies to find the best bundle for you, you can start your comparison quote right now.
Next, consider the discount percentage. Some insurers offer up to a 25% discount on your policy, but others may only offer 4% off. Compare the costs of buying policies separately and insured bundles to see which one will give you the best deal.
Closely review your bundle discounts and calculate the differences. You may end up saving more money in the end with a home and auto insurance policy that costs a little more but offers a bigger discount.
Who offers home and auto insurance bundles?
Most major insurance agencies and some smaller independent firms offer home and auto packages. For example, the following auto and homeowners insurance agencies allow you to package two policies:
- Liberty Mutual
- State Farm
Most insurance companies will offer home and auto insurance bundles so it is always worth asking your insurance agent about.
Should I bundle my home and auto insurance policies?
When asking, Should I bundle my home and auto insurance policies you will want to consider the following.
Larger Policies = Larger Discounts
If you own a very expensive home or car or carry a big insurance policy, you may get a bigger discount. On the flip side, if you’re looking for a basic plan and coverage for liability insurance for your basic home and vehicle purchase, you might not see much savings in buying bundled policies. Do the math on both and choose the one that is most financially prudent for you to make sure you’re getting the richest benefits possible.
Home Insurance Gets Complicated
If your home insurance is expensive due to the fact that it requires add-ons or riders, or because of exclusions, then you might find a better deal by taking out different policies with a specialized agency. For example, if flood insurance is required in your area, even if you can’t get a discount through bundling other services, you may find an agency that specializes in handling and building policies specifically for these properties and knows exactly what you need to protect yourself.
Insurance Claims History Matters
Like any insurance policy, home and auto insurance bundles vary in price depending on your personal situation. If you have a clean driving record, a good credit score, and have never filed a claim on your homeowner’s insurance, you’ll get the best rates and biggest discounts. However, if you have a history of traffic violations or a lower credit score, the policies offered to you (and in turn, the bundles) will be pricier.
Your Location Matters
Beyond your personal history when it comes to insuring your home and car, where you live impacts insurance rates in different ways. For example, areas with natural disasters or along coastlines often carry higher insurance rates than areas with more stable weather for homes. Crime rates in your neighborhood tend to impact both home and auto rates.
There is a direct correlation between crime rates in an area and how expensive insurance premiums will be. According to the Insurance Institute, theft, vandalism, poor driving skills, and accidents all increase auto insurance prices in a given area. In order to pay less for your car insurance, you could park your vehicle in a garage or gate access monitored location so it doesn’t get damaged at all.
Finding the best home and auto bundle
Finding the best home and auto bundle seems difficult but shouldn’t be complicated. Following some steps will help you find the best price and coverage.
Figure out your needs: Consider the size of your home and garage and the costs to repair them in the event of a loss. Knowing the amount of coverage needed will make shopping auto and home bundles much easier. Speaking to an agent about your coverage is very helpful.
Clarify 3rd Parties: When I bundled my Progressive auto insurance they used a third party for the home insurance coverage through Nationwide Insurance. It worked out ok because I was still able to pay my premiums in one place with Progressive but it is important to understand where you need to make your payments and file your claims.
Compare annually: When your policy is renewed, be on the lookout for potential increases in premiums due to what insurance companies call “price optimization”. Even if you’re getting a discount right now, check out rates from different insurance providers at least once a year — and ideally toward the end of your policy term — to make sure you’re getting the best deal possible.
When you are ready to compare your rates, use our free rate comparison tool to have our team of experts find the best home and auto insurance bundle for you.