Home and Car Insurance Bundles: How Much You Can Save and How It Works
Nobody enjoys paying an arm and a leg for insurance. Tired of shelling out for high insurance premiums? Bundling policies is a savvy way to lower your premiums.
Bundling means purchasing multiple insurance policies from the same insurance provider as a set. While it's possible to bundle various types of policies, home and car insurance bundles are the most common.
So why should you bundle your home and auto insurance? Keep reading to discover how bundling works, what are its pros and cons, and what to consider before bundling.
What Is a Home and Car Insurance Bundle?
A car and home insurance bundle combines your car and homeowners insurance policies with the same insurance company.
Simply put, rather than having your vehicle insured by one insurer and your home by another, you get both policies under one roof. It's like buying a combo meal instead of a meal and drink separately.
How Much Can You Actually Save by Bundling?
Bundling your insurance may seem like an unnecessary extra step you need to take when purchasing insurance. So why should you go through with it?
Bundling your auto and home insurance can significantly lower your premiums, though cost savings vary from insurer to insurer. For example, Progressive customers save roughly 7% when they bundle home and auto insurance.
Top Benefits of Bundling Your Insurance Policies
Bundling insurance policies offers many potential perks. Top reasons to bundle home and auto or other types of policies include:
Lower Premiums
Bundling your policies can result in substantial savings, as most insurers offer multi-line discounts. A multi-line or multi-policy discount is a special discount that insurance companies give policyholders who purchase multiple policies with them. For instance, new Progressive customers who bundle auto and home insurance save roughly 20% on their premiums.
Simpler Account Management
Managing multiple policies from multiple insurance providers can be a logistical nightmare. Bundled insurance can simplify account management, allowing you to:
- Consolidate billing: Different policies have different renewal dates and payments. Keeping up with multiple policies from different providers can be tedious and mean you are more likely to forget to pay your premiums, causing your insurance coverage to lapse. When you bundle your policies, you'll have one payment.
- Streamline claims: If you need to file multiple claims, having all your policies with one insurer can expedite the claims process.
- Maintain a single point of contact: With all your policies in one place, you have a single company or agent to deal with for all your queries or concerns.
Loyalty Benefits
Many insurance companies give policyholders who bundle policies additional benefits, such as larger insurance discounts or higher coverage limits. For example, Progressive offers multi-policy discounts and priority call routing to customers who bundle home and auto insurance.
Lower Deductibles
Some insurers that offer insurance bundles will let you combine your deductibles. Instead of paying a deductible for each policy, the insurer will allow you to pay one deductible for multiple policies.
This can reduce your deductibles significantly if a single event causes a loss that affects both policies. For instance, if a hurricane damages your home's roof and your car's hood, you'll only have to pay a single deductible.
When Bundling Might Not Be the Best Option
The multiple benefits of insurance bundling may make it seem like a no-brainer, but it isn't always the best option. These are potential reasons not to bundle insurance.
Potentially Higher Costs
While most insurance companies offer policyholders discounts for bundling policies, it isn't always the most cost-effective option. Sometimes, individual policies with different providers might result in bigger savings, even without the bundle discount. Always compare insurance quotes from multiple providers to get the most bang for your buck.
Lack of Specialized Insurance Coverage
Some insurers don't provide certain types of coverage. If you bundle policies with an insurer that doesn't meet your coverage needs, you risk being underinsured. For example, if you're a high-risk driver, you might need specialized car insurance rather than affordable homeowners insurance.
Which Companies Offer the Best Bundle Deals?
Here are home and auto insurance bundle discounts offered by top insurance providers. Discount rates and availability may vary across states.
| Insurance provider | Average car and home insurance bundling discount |
|---|---|
| Allstate | 25% |
| Farmers | 20% |
| Nationwide | 15% |
| Progressive | 7% |
| USAA | 10% |
Liberty Mutual also states that policyholders who bundle their home and auto insurance could save up to $950 on annual premiums.
What To Consider Before You Bundle
If you want to bundle insurance products, take these steps first:
- Assess your coverage needs: Consider your unique circumstances and needs. While an affordable bundle might seem attractive, it may be unsuitable if you require additional coverage options.
- Review policy terms: Read the fine print of each policy included in the bundle to avoid surprises. Some insurers offer introductory discounts that could end after a certain period, so be wary.
- Shop around for bundled and individual policy quotes: Compare quotes for both bundled and individual policies from multiple insurers to ascertain you're getting value for money.
Other Types of Insurance You Can Bundle
Insurance bundling isn't reserved for car and home insurance. Other common insurance bundles include:
- Auto and renters insurance
- Auto and life insurance
- Auto and condo insurance
- Auto and motorcycle insurance
- Auto and umbrella insurance
- Home and umbrella insurance
Compare Quotes To Find the Best Bundle for You
Bundling insurance policies offers multiple benefits, including potentially lower insurance premiums, easier account management, and lower deductibles. But this doesn't mean you should choose the first insurance company offering an enticing bundle. Get a free, custom insurance quote today to find the best bundle for your needs.