When Should You Bundle Home and Auto Insurance?

Auto Insurance

Both homeowners insurance and car insurance coverage are essential. We’re always looking for the best quality but also looking for prices that don’t affect our wallet too much.

Generally, bundling these two insurances will give you access to two areas of benefits at a great price break. Killing Two Birds With One Stone is something that requires research, proper judgment, and knowing what you want.

Instead of paying separately, it’s common to bundle auto and home insurance making a contract with one company, the main perk of this is that they give you special discounts for the bundle.

Why Is Insurance Bundling A Good Idea?

Insurance companies are always looking to attract more clients, the competition is tough so they often offer great insurance rates and services to ensure their customer is there to stay. These are some of the main perks of having a bundled policy with the right insurance companies:

  • You can receive a discount of up to 10 or 20% for each individual policy when bundling them. Insurance is often a lifetime commitment so getting a cheap deal is a good idea.
  • Another perk is that the whole process is simplified by having a single agent assess your home and car insurance, you will be signing a single contract and also paying one bill for both policies making the payment easier too.
  • If there’s an issue with one of the policies, like getting a speeding ticket, there are fewer chances of getting your policy canceled since it’s a bundle.
  • Adding a second car or life insurance policy can get you more discounts. Companies are always available to give you more if you ask for more and to attract you to these deals they will have attractive offers prepared.

Why Do Companies Offer Bundling?

Overall, it’s a benefit for companies to combine your policies on just one contract and to offer discounts for it. This way, they gain more customers who are in it for the long run. Processing new customers is an expensive procedure for companies so they prefer to have single customers who contract multiple lines of insurance and increase their total premiums.

Things To Have In Mind When Bundling

While bundling is a good idea, it doesn’t apply to everyone or all situations, the prices may vary and sometimes it’s actually more convenient to contract your auto and home policies separately. These are some of the main reasons that can affect the possibility of bundling:

historic home

  • The value of your car and home affect the price of your policy, as well as the amount of coverage you require for each. Also, the type of car and home play an important role in this, if either your car or home is special (e.g. you have a classic car from the ‘40s or a historic home) this might affect whether you can get a policy for them or not.
  • Your location is also a defining factor in the price and coverage of your policy.
  • The type of coverage determines if it’s a good idea to bundle too, as sometimes a bundled insurance doesn’t offer a satisfying coverage for each policy and contracting a different insurance for each can let you customize better what you want.

It all depends on your needs and budget.

Advice On Bundling

Do your research and don’t dive in with the first insurance company you find. It’s a good idea to check their overall reviews online before making a decision. Compare their quotes for bundled policies and find out with the company if they offer all the coverage or if they use third parties for any of them within the bundle. In such a case, you would have to deal with two companies instead of one so it wouldn’t be as convenient as a bundle where both policies are dealt with by the same insurer.

Compare a bundle with the prices you can get by getting separate policies, it’s possible to find great deals that fit the individual needs for auto and home insurance while saving some money.

Who Is Bundling for?

If everything is in place and your company has offered you a great deal and enough coverage for both your home and car, then bundling is for you. These questions will help you decide if bundling is convenient for your specific case:

  • Is it cheaper than contracting two separate policies?
  • Can I add more vehicles to my auto insurance and enjoy the discounts?
  • Is the company offering good quality and enough protection with their policies?
  • Can I pay for everything in just one bill?
  • Can I afford it?

Bottom Line

Getting a proper insurance policy can be a hassle. Sometimes, the process is time-consuming and even impossible, in some cases, depending on the factors mentioned before (the type of home and car, value, special needs, etc.). This is why you should always look for enough information before bundling since once you’re in it’s very complicated to get out. You can save time and money with bundling and feel the relief of having everything taken care of while saving a good sum of money.


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