When you’re in the market for insurance, the choices can seem overwhelming. If you’re looking for multiple types of insurance, it may make the most sense to bundle them or buy them all from the same company. This is often done with homeowner’s and automobile insurance. Depending on the company you are working with, you may be able to bundle additional insurance types, such as a personal umbrella policy. There are many reasons to consider bundling your homeowner’s and auto insurance together.
Benefits of bundling
Just as with purchasing any insurance, you need to do your research to evaluate prices and coverage. Often times it makes sense to bundle for the following reasons:
- It is cost effective.
Most insurance carriers will offer a discount when you bundle your homeowner’s and automobile insurance policies. The actual discount varies by insurer but is usually between five and 25 percent – a great incentive for additional coverage and a solid discount.
- It is convenient.
Bundling your insurance policies together makes things much easier for you. It makes it easier to manage multiple policies as you may only need one login and password and it reduces paperwork. This also saves you time and headaches because you only need to deal with a single carrier instead of multiple carriers with multiple policies.
- Making changes are easier.
By working with just one company, changing or adding to your policies will also be much easier. Your agent will have a good handle on your situation and be able to make it easier to add insurance, apply discounts and add endorsements. This relationship will be more and more beneficial over time as things in your life change.
- It can give you access to unique product tiers or more complex bundles.
If you decide to combine all of your policies, insurers will usually offer more complex bundles or unique product tiers. They may offer one product package to cover all your insurance needs. Most home and auto insurers offer insurance in other specialized areas of personal property protection as well. Unique product tiers are helpful for cutting out paperwork, wrapping it all into a single bill and could reduce everything to just a single deductible.
Things to consider
- The price of your home.
If you have a higher value home, you could get a higher discount for bundling home and auto insurance.
- The price of your vehicle.
The opposite is true for a luxury vehicle, which can drive up bundled premiums. This is because of how expensive it can be to repair these types of cars. It could be better in this case to have separate policies.
- Where you live.
People who live in safer places will probably save more money than those in high-risk flood and other disaster areas.
Bundling your home and auto insurance can have great benefits, but it all comes down to your specific circumstances and working closely with your insurance agent. Contact our team at Bieritz Insurance today to find the best policies for you!