Best Home and Auto Insurance Bundles
Many major insurers offer discounts if you bundle your insurance coverage. While bundling home and auto insurance can usually save you money, there may be times when bundling makes no sense. You shouldn't bundle if you can find cheaper coverage with different insurers or if you can't find the coverage you need when combining home and auto policies.
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Having the right insurance is imperative for your financial security. You need auto insurance if you drive to cover you in case of an auto accident, theft, or damage to your vehicle. And if you own a home, buying homeowners insurance is essential to repair your home in the event of a disaster or to protect you from liability if someone is hurt on your property.
While you need insurance coverage for your car and home, it can be expensive to buy multiple policies. The good news is that bundling insurance could potentially save you money. Bundling policies—or getting multiple policies from the same insurance company—can often result in lower premiums because it’s common for insurers to offer a multi-policy discount.
Bundling discounts doesn’t always make it a better deal to buy multiple policies from the same carrier, but it often does. You can find out here how multi-policy discounts typically work and which companies offer the best home and auto insurance bundles for getting covered at the lowest cost.
On this page:
- Best Home and Auto Insurance Companies
- When Should You Bundle Insurance?
- Do Your Research and Comparison Shop
Best Home and Auto Insurance Companies
Insurers want to capture your business, so it’s common for home and auto insurance companies of all sizes to offer insurance savings if you purchase a home and auto insurance bundle. Some of the major insurers that provide multi-policy discounts for buying home and auto coverage include:
- Allstate: You can get up to 10 percent off your auto premiums and 25 percent off your homeowner’s premiums when you bundle a policy. If you have renters insurance, you may also qualify for a discount.
- Progressive: If you have two or more policies with Progressive, you’ll get an average of a 5 percent discount on policy premiums for each type of coverage.
- State Farm: State Farm offers savings of up to 17 percent when you buy both home and auto coverage.
The specific discount you’re eligible for will vary based on where you live and the specifics of your auto policy and home policy. For example, many insurers offer more substantial savings the more coverage you have, so you can get the maximum discount by buying multiple car insurance policies along with your home policy.
To find out the specific insurance discounts you’re eligible for and to make sure you benefit from the savings you’re entitled to, talk with your local agent. Your agent can help you calculate your exact savings and can make sure that your coverage is written as bundled coverage so you can benefit from premium discounts.
When Should You Bundle Insurance?
Bundling insurance makes sense for many policyholders, both because of the bundling discount and because it’s more convenient to have one insurer you deal with. However, that doesn’t mean you should always bundle without considering all your options. Bundling coverage is generally a good idea for you if:
- You know and are confident in your insurer: The last thing you want is to bundle all of your coverage with a bad insurer that’s going to give you a major hassle if you must make an insurance claim. If you’ve been with the insurer for a while and know the company cares about providing good-quality coverage, it makes more sense to switch all your business to the provider.
- You can achieve cost savings by bundling: If you can save more money by buying policies from separate insurers, there’s little reason to pay extra to get bundled coverage—unless you don’t mind paying a financial premium just for the convenience of having only one insurance carrier.
- You can get the coverage you need from one insurer: You never want to be under-insured because you had to settle for a carrier that didn’t offer the necessary coverage. If an insurer can’t provide the protection you need for both your home and auto, buy separate policies even if it means forgoing a multi-policy discount.
However, bundling insurance might be a bad idea if:
- A poor driving record leads to higher premiums: If you have a history of accidents or tickets, you may become ineligible for certain discounts. You may be better off keeping your policies separate so your bad driving doesn’t affect your coverage as a whole.
- It’s cheaper to buy policies from different insurers: Sometimes, you can get a better deal by buying policies from separate insurers, each of whom offers lower prices on the individual car insurance or homeowner’s insurance policy that’s right for you.
- The insurer offers discounts only on certain packages: Some insurers impose significant restrictions on when you can qualify for bundled discounts, such as requiring you to buy a certain minimum coverage amount. If the package you’d need to qualify for a discount doesn’t make sense for you, don’t buy the wrong coverage just to get a percentage off your premiums.
Comparison Shopping for Insurance Is Essential
When you’re looking for the best deal on insurance, don’t assume an insurance bundle is always the best bet. You should get quotes from multiple home and auto insurance providers to find out who can provide the most comprehensive coverage at the best price.
When you talk with insurers, ask about cost savings if you buy multiple policies through them. And make sure to find out if you might be able to incorporate other insurance into your bundle too, such as insurance for your small business or life insurance.
Do Your Research to Benefit From Bundling Discounts
Some new policyholders might be surprised to find out how much insurance savings it’s possible to qualify for when you bundle car insurance, home insurance, and other policies. It’s worth taking the time to talk with a few insurance agents about affordable bundled coverage to make sure you get the policies you need at a cost that’s as low as it can be.
By taking the time to do your research, you can save on all your coverage, and less of your cash will boost the insurer’s balance sheet. After all, you can definitely put any money saved to good use.
Author: Christy Rakoczy