Finding the Best Auto and Home Insurance Bundle
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Purchasing a home and auto insurance bundle has perks beyond saving up to 25% on monthly premiums. According to Liberty Mutual, one of the most well-known insurance providers in the nation, you could save $947 on your home and auto policies when combining insurance.
If your current policy does not bundle two or more insurance types, it may be time to look for a new policy to save you money. We recommend comparing quotes from multiple insurance providers to get the best auto and home insurance bundle at the best rate. To get started, enter your ZIP code below:
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So, why should you bundle home and auto insurance, and what are the benefits of bundling? In this guide, we’ll explore everything you need to know about combining insurance policies if you own your home and your vehicle.
- Purchasing your home and auto insurance under the same policy can save you money, especially when you shop for the best rates and discounts to match your needs.
- Before shopping around for the best rates, identify the levels of coverage and options you want and what you are required to have based on the laws of your state. This usually applies to the auto portion.
- Bundling your auto and homeowner’s policies is cost-effective and can simplify your insurance records and management.
- Verify that the insurance company has a good reputation for quality customer service and timely claims management.
What Is an Insurance Bundle?
An insurance bundle is when you buy one or more policy types through the same company. Most insurance companies provide this discount as an incentive to remain with them instead of spreading your policies across different companies. Depending on the company, policyholders can expect to save anywhere from 5-25% on their premium.
Common Types of Insurance Bundles
Although a home and auto insurance bundle is a popular combination, it’s not your only option. For example, you might bundle an auto insurance policy with a life insurance product or a renter’s insurance policy. You can even bundle three or more types of insurance, for example, life, auto, and RV. Commonly combined policies include :
- Homeowners insurance
- Auto insurance
- Renters insurance
- Motorcycle insurance
- Life insurance
- Condo insurance
- RV Insurance
Generally, you can bundle any combination of the above. The more policies you combine, the greater the potential savings.
The Pros of a Home and Auto Insurance Bundle
The benefits of bundling auto and home insurance include reduced costs and less hassle. Here are a few advantages to combining insurance policies.
The biggest draw of a home and auto insurance bundle is the potential savings. Although the exact savings vary based on your situation, expect to save up to 25% when bundling policies through the same insurance company.
If you’re going to pay for the insurance policies anyway, you might as well save while you do it, right?
Streamlining the Process
By bundling, you’ll save time by working with only one insurance company. Which means all policies are paid once through a single website, easily viewed on one bill. While this might be a small benefit, it saves you the hassle of managing two companies and two payments!
Most homeowners will continue to pay their insurance bills through an escrow account tied to their mortgage lender, but still get a discount on that homeowners premium if their auto policy is with the same insurer.
The Cons of Combining Insurance Policies
There are a few disadvantages to consider when bundling your insurance policies.
Not Available From Every Insurer
Not all insurance companies will offer all the policies you are looking for. For example, some companies only offer auto insurance, and others offer several insurance types but not homeowners coverage. Some carriers will offer an account discount on a single line if the other lines are written through the same agency. Others offer a substantial discount just for being a homeowner, even if the home itself isn’t insured with the same carrier as the vehicle(s). In this case, you’ll either have to find an insurance company that provides what you need or opt out of bundling your policies together.
Not Necessarily the Best Deal Around
Bundling discounts aren’t always the best option for your budget. You may find better insurance rates through other insurance providers depending on your situation.
For example, let’s say you work from home and use public transportation frequently, so you don’t drive often. As someone that drives less than 10,000 miles per year, you stand to unlock significant savings through a pay-per-mile insurance policy. So you might get the best available car insurance rate through an alternative car insurance company like Metromile. But since the company doesn’t offer a bundling discount, you might overlook these savings if you are dead set on a bundling deal.
Ultimately, you’ll need to compare your options to decide if a bundling deal is the right fit for you.
How to Bundle Car Insurance and Homeowners Insurance
If you want to bundle your car insurance and homeowner’s insurance, take the following steps.
Identify What Insurance Coverage You Need
Before bundling your policies, you want to understand the level of coverage you need. For example, if it’s an auto insurance policy, are you looking for state minimum coverage, or do you want to have more liability protection and/or add comprehensive, collision, and roadside assistance?
If it’s a homeowners policy, do you have specific preferences about your coverage options? Maybe the best home insurance policy for you is from a homeowners insurance company that doesn’t provide a car insurance bundle.
Beyond those coverage needs, think about what you want from a company. Maybe you’re tech-savvy and always on the go, so you prefer to work with a company with an excellent mobile app. On the other hand, perhaps you want to work with a company with local agents at an office near you because you love the personal touches in-person communication can bring.
Not every insurance company offers both home and auto insurance policies to policyholders. If you are combining insurance, a few of the popular insurance providers that carry car insurance bundles include:
Although this isn’t a complete list, you can see that many large car insurance companies offer this option. However, these big names are the tip of the iceberg for a driver and a homeowner.
You don’t want to get rates from one company and stop there. Instead, compare car insurance quotes from different insurance companies to determine which company can give you the best rates without sacrificing coverage quality and customer service.
At Compare.com, we have an auto insurance comparison tool that can help. First, find a company that offers rates that fit your needs, then see if they also have homeowners insurance and get a quote directly from them. Finally, if they have the best auto and home coverage you need, see what combining policies can get you.
Review Each Quote
Once you get bundled quotes from several home and auto insurance companies, review each policy to make sure they actually meet your expectations. The last thing you want to do is sign up for insurance products that have a great price but leave you high and dry in the event of a claim.
Enroll in Your New Policy
Once you’ve reviewed your quote options and decided, you can enroll with your new insurer. This may be done online, over the phone, or in person, depending on the company.
Other Insurance Discounts to Consider
As a driver, bundling insurance policies isn’t the only way you can save. There are plenty of discounts to help lower your insurance premiums. So as you shop for the best rate, don’t forget to ask about other discounts. Here are some of the most common discounts:
- Safe driver discount: You could save on your policy if you haven’t been in an accident or received a traffic violation recently.
- Good student discount: Many insurance companies reward students who earn good grades with a discount.
- Paid-in-full discount: You could save if you can pay for your full policy up front.
- Multi-car insurance discount: Are you insuring two or more vehicles on your insurance policy? You might enjoy a discount on your premium.
- Anti-theft discount: A vehicle equipped with anti-theft systems could shave some money off your plan.
Frequently Asked Questions (FAQs)
Can you combine home and car insurance?
You can buy car and home insurance policies from the same insurance agent or company. Doing so typically earns you a multi-policy discount, saving on both premiums.
Is an auto insurance bundle worth it?
It’s possible to save up to 25% when bundling your home and auto insurance policies with the possibility of add-ons.
Can you cancel one of your policies after bundling them?
Yes, you can cancel your insurance policies after bundling them. However, that means you’ll lose your bundling discount.
How much will I save by combining insurance?
The amount you save will vary based on your unique situation. Although you could save up to 25%, your actual savings could be lower. That’s why it’s essential to shop around.
Is a home and auto insurance bundle right for me?
Bundling your homeowner’s insurance and auto coverage could lead to big savings. But before you bundle your car and homeowner’s insurance with a particular company, take the time to explore all of your options. Limiting your search to just insurance companies offering to combine insurance policies might steer you away from some of the best deals if you separate policies.
Shop Around for the Best Auto and Home Insurance Bundle
Bundling your home and auto insurance policies can save a few dollars in monthly premiums. By shopping around, you can decide if bundling is the right move for your wallet. Take advantage of our free comparison tool to find the best rates for your car insurance needs.
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