What Do You Get with a Home and Auto Insurance Bundle?
When you bundle your home and auto insurance, you typically get discounts from your insurer on both policies, compared to purchasing them separately. Discounts vary from one insurance company to another. Notwithstanding, you enjoy 10% to 25% off on your premiums. Besides, the billing method is simplified as well, since both insurance policies are combined.
Not all insurance bundles are cost-effective. In fact, you may save more when you purchase separate policies, depending on the insurer. For instance, your auto coverage and home coverage from two different insurance companies may set you back by $1,500 and $1,300, respectively. If you switch your home insurance to your vehicle insurer at $1,500 per year, you will pay an additional $200.
Instead of $2,800 in insurance, you will pay $3,000. Consequently, you will need a discount of, at least, $300 to make this insurance bundle attractive. On the flip side, having multiple insurance policies from the same insurer implies a swift renewal process.
How to Shop for the Best Deal
It’s a good idea to shop around for the best home and auto insurance bundle deal to enjoy significant savings. To make the right choice, consider the following factors:
- Identify your needs to know what coverages are most important
- Compare the insurance premiums and deductibles between providers
- Make sure you get the same coverage across the board
- Make sure you receive all the discounts for which you are eligible
When you take into account these variables, you can make a well-informed decision that will offer the appropriate coverage without breaking the bank.
What Does it Mean to Bundle My Insurance Policies?
It means to buy more than one policy from an insurer as part of a package. This provision eases the burden of paying two or more premiums per month. You can effectively manage all of your insurance products from the same source.
When you apply for auto and home bundled coverage, the insurance company will request the following information for the former:
- Vehicle identification number
- Driver’s license number
- Lienholder information
- Credit or debit card information for vehicle down payment
Regarding the latter, you will need to supply the insurer with information on your:
- Loan number
- Mortgage company
- Escrow account (if applicable)
You should also take note of your home’s size, building year, and market value, as they will come in handy during the application process.
What Amount of Discount Do You Enjoy?
In most cases, discounts on your home and auto insurance are 10% to 25%. Nonetheless, some insurers give more or less depending on the provider, product, coverage, and other factors. Therefore, it’s important to shop around and compare the deals offered by various insurers.
When buying a home and auto insurance bundled package, you should ensure that the deductibles and coverage limit match those of your policies.
Can I Add Auto Insurance to Renters Insurance?
Residential property owners benefit significantly from a home and auto insurance bundle, but that doesn’t rule out renters. Renters insurance and auto insurance can be combined to provide a two-in-one insurance package for tenants who own personal vehicles and reside on other people's premises. This may be the best plan for you if you fall into that group.
You can also bundle your existing insurance with other policies, such as life, RV, condo, and motorcycle, to name a few. Make sure that whatever option you choose is available, comprehensive, and meets your specific needs.
What Maximum Number of Policies Can I Bundle At A Time?
In principle, there is no limit to the number of bundled policies you can obtain from an insurer. Nevertheless, bear in mind some insurers may limit the number of policies based on their product line, location, or market share. Even if there is no limit, you may have to purchase the bundle at the full retail price.
In some cases, a selected number of policies are made available at a discounted rate. These discounts vary from one insurance provider to another. Before you decide on a particular bundled policy, do your research and find out what discounts you are eligible for. You can contact us today to get a tailored quote for your home and auto insurance bundle.
