Is Auto Insurance Cheaper if Bundled with Home Insurance?
You’ve probably heard that bundling your insurance policies will help you save money. In many cases, this is very much true.
Two of the most common types of personal insurance that almost anyone needs at some point in life are auto insurance and homeowners insurance. Most of the time, those in the market for both policies can bundle them through the same insurer, which offers a lot more convenience than buying policies separately. But is it always cheaper to bundle auto and home insurance?
The Costs Benefits of Bundling Insurance Policies
Generally speaking, it is often cheaper to bundle home & auto insurance plans. Insurance carriers frequently give customers who buy both policies a deal on their premiums.
Still, having a bundle makes it more of a hassle to switch carriers for better benefits or lower rates. Therefore, doing so might discourage you from changing your coverage even though it might actually be a better deal in the long run. In these situations, if you keep bundling plans, and your rates keep going up, you could end up overpaying for benefits.
Benefits for Bundling Auto Insurance with Home Insurance
The perks of bundling are often very far-reaching, and given that homeowners and auto insurance policies are among the most important plans that the average person might need, they’re often the best suited for working into a bundled deal. Some of these benefits might include:
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Decreased likelihood that you’ll be dropped: Insurance companies may threaten to drop you if you have a lot of claims on your vehicle. If you bundle with your insurance company, however, they’re less likely to drop you since you’ve invested in two pieces of their insurance.
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Discount: You may save 5%-25% on your premium payments.
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Consolidated policies: A lot of insurance companies offer their bundlers an app or portal where they can view all their insurance policies in one convenient place. Therefore, you won’t have to look in a lot of different places just to manage your insurance benefits.
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One agent: You will typically have only one agent for both policies, which cuts out having to deal with multiple agents.
Disadvantages of Bundling Auto Insurance with Home Insurance
All the same, be conscientious when considering the drawbacks of bundles:
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No price shopping: Having a bundle may prevent you from seeing the other discounts that are available from other insurers.
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Affiliate bundling: Some insurance companies don’t actually bundle your home and auto, but instead send your auto insurance to an affiliate company. This means you wouldn’t have the perk of having everything in one place, though you might still get a discount.
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Rising premiums: Insurance companies may push up your premiums over time when you bundle with them. Although you began with a discount, you could end up paying too much money, and could wind up saving money through an alternative plan setup.
Let your insurance agent help you consider the best options to bundle your home and auto insurance. For some it may be a no-brainer while others may want to consider having separate policies for their individual needs.
