Bundling has many benefits, ranging from discounts on policies to only dealing with one bill each month. This is also a great way you could save time, as there will be only one company to contact if you have any issues or questions. With this in mind, the following content could help you make the smartest decision for your wallet.
What You Want vs. What You Need
Many insurers offer the option to bundle multiple products together; referred to as a multi-policy, multiline, or multi-product discount, you should bundle your homeowners and auto policies if you:
- Find the combination of policies cheaper than what you currently pay.
- Cannot find cheaper rates at separate companies.
- Are trying to insure a home.
Some factors, such as the number of years you’ve been driving, are largely out of your control. Other factors, however, are less fixed and could directly affect your premiums. With this in mind, consider whether bundling your auto and home insurance would be more expensive than separate policies at two companies.
What are the benefits of bundling home and auto insurance?
There are a few reasons beyond price that may make bundling beneficial.
- Having an auto policy with a company that also sells homeowners insurance may give that company more incentive to insure your home — despite the risks.
- Having multiple policies with one insurer may make them less likely to drop you.
- You could experience less hassle managing policies when they come from a single company. You’ll work with one agent, if applicable, and usually manage both home and auto policies within the same web portal.
- It may be a good idea to pay a higher price for the bundle if you are having trouble finding a company to insure your high-risk home.
With the right bundle, you could be on your way to saving money on both your auto and home insurance policies.