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Should You Bundle Auto and Home Insurance
What You Need To Know Before You Bundle Insurance Policies
If you need both home and auto insurance, you have two options. You can buy them both from one provider, or shop around to find the best rate for each policy from different companies. Purchasing multiple policies from the same carrier, or bundling your home and auto insurance, often promises big discounts. Especially during these times, saving money on insurance can impact you and your family greatly. Before you sign up for bundled products, you need to know if you are truly going to save. Here’s a closer look at bundling insurance policies and what it means for your wallet.
Does Bundling Save You Money?
The basic answer to this question is yes. Bundling will save you between 5 and 25 percent on each policy you buy. Why? Because insurance providers want your business, and they are willing to give discounts to get more of it. But that does not necessarily mean you are getting the best possible deal if you bundle.
You may be thinking, “Why wouldn’t saving up to 25 percent not be the best deal?” The answer lies in the initial cost of the policy. Saving 25 percent on your homeowner’s policy, when another company offers a similar policy for 30 percent less, is not actually saving. If one of the policies you purchase is overpriced, the discount earned from bundling is not worthwhile.
Often bundling and the resulting discounts does make the most financial sense, but you must take the time to research your options to ensure you’re getting the best possible value. Make sure you understand what a policy includes before deciding.
Non-Monetary Benefits of Bundling
Most people consider bundling their insurance policies to save money, but you may enjoy other benefits as well. When you bundle, you get fewer bills and statements each month, which makes it easier to remember to pay your insurance. Less paperwork makes managing your insurance more convenient. Finally, if you suffer an event that damages both your home and your car, a bundled policy may mean paying just one deductible instead of two.
Automatic Renewal Can Cause Problems
If you’ve done the math and found that a bundled deal is your best insurance price, then go ahead and bundle. However, be careful. One of the reasons insurance companies will offer bundled deals is to gain new customers. Those customers then get a convenient renewal process. Most bundle costumers are more likely to stay customers for many years. As a result, many people who sign up for multiple policies under one insurer forget about their insurance when the time to renew comes along, and just let the policy renew automatically year in and year out. Thus, never checking to see if a better option exists.
In addition, policy prices tend to increase year after year. If you are not paying attention, you could be over-paying for your insurance after a few years. This is particularly problematic if you are paying for your homeowner’s insurance through your mortgage escrow. It is easy to forget about your policy and to fail to shop for a better price. As a home and car owner, it is important to make sure you are not being taken advantage of.
To Bundle or Not to Bundle – What’s the Bottom Line?
What’s the bottom line about bundling your homeowners’ and auto insurance? When you first purchase your policy, this can be a great way to save money and make your insurance more convenient. It is great to just have one bill from one company to track. However, you will need to be cautious to shop around when the renewal date comes. It is up to you to be certain that your rates remain competitive. With bundling discounts and careful shopping, you can get the lowest possible rate.
If you are going to bundle, make it your goal to check rates and ensure yours are still fair every other year. Therefore, shop around if you see your rates increase by 10 percent or more when your renewal date comes around. Finally, always check your insurance products to make sure they are the right fit after any major life change. Consider such events as a move or a marriage or separation.
Bundling your home and auto insurance is an excellent tool to help you save, but like all tools you need to use it wisely. Take the time to do your homework and ensure that your rates are the best available, whether or not that means a bundled plan.
How can Get Insurance Pricing Help?
GetInsurancePricing.com has been redesigning our insurance pricing portal to make the experience click-based. With a few clicks of your mouse, you can be quoted with a new auto insurance policy. If you are wanting to bundle that is an option too. Fill out our form with ease here: https://getinsurancepricing.com/auto-step-form