What are the Benefits of Bundling Home and Auto Insurance?

We’ve all seen the ads. Whether in a museum of inexplicable accidents or a fitness class where alter egos debate coverage, the messaging often includes: Bundle your home and auto insurance.

But should you?

It often leads to greater savings and better service. Let’s explore why.

Most Carriers Offer Multiple Products

Bundling home and auto policies provides a good deal for most. If you can get a single stop for your insurance needs — and save money — who wouldn’t?

Aside from financial savings through companion discounts by purchasing multiple policies, a single carrier can save you time.

Bundling Policies Should Save Money

For bundling to make sense, combining your home and auto insurance under a single carrier should save you some money.

Often called a multi-policy or companion discount, bundling home and auto insurance can save you as much as 20 percent to 30 percent on premiums than if you purchased the policies from separate companies.

Now, that amount can vary by state and carrier.

A byproduct of bundling can result in financial benefits down the line, as well. In certain circumstances, such as a car and house each incurring damage in the same incident, you could save you money. When you bundle, you can save by filing a single claim and paying one deductible. If you have multiple carriers in that same scenario, you would need to file claims with each carrier and pay multiple deductibles.

Hopefully you never encounter an incident where both your home and auto are damaged. If you do, saving some money could make you feel a bit better about the situation.

Bundling Should Save Time

In this day and age, where our attention is pulled in many different directions, bundling coverage could look attractive by the time savings alone.

When you bundle coverage, it should reduce administration such as paperwork and websites to visit. Overall, the need to communicate with multiple providers goes away. And when changes need to be made, having that relationship with a single provider can help simplify the process of needing to add coverage or address issues.

Loyalty Can Work Both Ways

We mentioned issues prior. Not only could you develop a personal relationship with a carrier, but that carrier can look at you differently if you have multiple products with them.

Live in an area with severe weather? When carriers get skittish about providing home coverage, it’s easier to obtain or keep your coverage if you have bundled products. They know if they don’t keep you as a client in one product, you’re likely to switch to another carrier for the other service.

Speaking of loyalty, carriers can also offer more expansive bundles. These combinations of policies work best for people who are looking to not only bundle home and auto policies, but also perhaps, as an example, a recreation vehicle or two as well as another property.

These bundles can provide the same advantages of time and cost savings. But before committing to a single carrier for most of your insurance needs, consider and evaluate some key criteria about the company.

Sometimes Bundling Isn’t The Answer

Even though bundling policies provides benefits for many people, in some instances it doesn’t make sense. First, you want to make sure you’re getting the same coverage for your money. Don’t skimp on coverage because you could end up paying more in event of a loss down the road.

Also, certain special items, such as premium vehicles, may not work well in a bundle.