You go to purchase a homeowner’s insurance policy and you’re offered auto insurance, too, but you already have auto coverage from a different company. Should you bundle home and auto insurance? Is it worth the trouble?
With some exceptions, bundling home and auto insurance is a good idea. As long as each policy has the coverage you need at a price that’s good for you, you should probably say ‘yes’ to bundling.
Why Bundle Home and Auto Insurance is a Good Idea
1. You can save with bundling discounts
It varies depending on your carrier and state, but generally insurance bundling can save you up to 20% on each policy, according to Nasdaq.com.
2. You can pay a single deductible
Sometimes you might need coverage resulting from an event that damaged both your home and your car. When you have policies with two different carriers you have to pay each separately. Bundling allows you to file just one claim and pay a single deductible amount.
3. Bundling is convenient
When you bundle, you only have to communicate with a single insurance carrier. You can usually manage your policies online at a single portal.
4. Your carrier is less likely to drop you
When you get a lot of tickets or have claims, an auto insurance provider might drop you, but when you’re bundled that’s less likely to happen
Why You Should Be Cautious When Bundle Home and Auto Insurance
When you bundle home and auto insurance, there are several reasons you should be cautious.
1. You might get reduced coverage
Even if you save by bundling, you should make sure your coverage isn’t reduced in some way. Be sure you have enough home insurance coverage.
2. You might quit looking around at other options
When you bundle home and auto insurance, you may become complacent and quit checking out your carrier’s competition like you should at least once a year.
3. Your premiums might be higher if your car is expensive
If you have a high-end or performance vehicle, you’ll need to get auto coverage from a provider that specializes in expensive cars. A standard carrier is likely to charge you more to make up for repair expenses, if they don’t turn you down completely.
Avoid Tunnel Vision If You Choose to Bundle Home and Auto Insurance
Ultimately, you should probably bundle home and auto insurance. But, make sure you don’t automatically re-up with your carrier just because it’s easier. Get quotes for the same benefits from multiple providers, because the savings you find could be well worth a change.