Bundle Insurance – How Bundling Insurance Helps You Save Money
Bundling insurance refers to buying multiple insurance policies – home insurance and auto insurance – from the same insurance company.
Bundling because popular when captive insurance companies like State Farm, Farmers, Allstate, and American Family needed a way to compete against independent insurance agent who can shop multiple carriers. A captive agent can only shop his one company as an independent agent can shop multiple companies.
In this article we will list the benefits of bundled insurance policies – including the multi-policy discount – explain how they work, and discuss the convenience of having the same provider.
How Can I Bundle Insurance Policies?
There are several ways to bundle insurance policies and make getting the multi-policy discount easier. The most common choices are the following bundles:
- Auto and home insurance
- Auto and renters insurance
- Motorcycle and car insurance
Home And Car Insurance Bundle
Bundling home and auto insurance is the most common option among policyholders – and it’s not as complicated as most of you think. Of course, you will need to purchase your insurance policy from the same insurer to qualify for a bundling discount.
For starters, you need to clarify your goal for getting bundled insurance; for most people, that goal is getting a discount. During the first stages of deciding on home and auto policies, you should consult with an insurance agent that can easily guide you through the entire process and explain the matter in detail.
Once you’ve set your goal, you can get on with comparing quotes. Finally, when you’ve determined the qualities that you’re searching for, reviewing auto and home insurance quotes from multiple insurance companies is made more accessible.
As you’re reviewing your quotes, pay attention to each one and carefully go through the premiums and coverage limits. Simply hovering over the policies will not do you any justice.
Decide on the insurance carrier and choose your insurer. The agent should then guide you through the process and policy of your choosing.
One last thing – and it’s one you should remember:
You must cancel the policies you have with other insurance policies. It would be best to wait until the previous coverage ceases to be effective so as to avoid lapses in coverages.
The Benefits Of Bundling Home Insurance With Auto Policy
First, let’s look at some benefits of home and auto insurance bundles:
- The most obvious advantage is that home and auto bundles leave you plenty of room for savings on both policies. With the right choice, you can save up to 40% on both home and auto insurance policies. Allstate offers some pretty good discounts – be sure to check it out.
- Home and auto bundle helps you manage and overlook multiple insurance products by using just one account. Most insurance companies let you keep track of your home and auto coverage by installing a mobile app.
- You have the opportunity to combine the bills coming from both home and auto insurance coverage. By doing so, you’ll be receiving upcoming expenses and notifications on just one account.
- You can qualify for one deductible. That is especially beneficial if your home and car happen to be damaged at the same time. Suppose that a storm hit your roof and it collapses onto your car. In that case, you’ll only pay one deductible for both.
Are There Any Drawbacks?
Be wary because there are certain obstacles in the insurance industry when it comes to combining home insurance with other policies:
- You may not realize this straight away, but not all insurers offer multiple policies – that is, home and auto policy. If you come across such companies, you probably won’t have the option of bundling. Still, this means that you’ll have to do more thorough research.
- Next, if your homeowners’ insurance has been switched to high-risk – which implies specific conditions – you may not be able to bundle your auto insurance policy.
- Your chosen auto insurance company will try to set you up with their “partner” that sells life insurance or homeowners insurance and decide to call it “bundling.” Watch out for this because it could affect you financially.
- Make sure you check everything with your licensed insurance agent before you buy the coverage. Your first insurer may allow it – but that doesn’t mean you’re getting the best deal.
Get The Most Out Of Bundling Auto And Home Insurance
You’re trying to save money; we get that. Your home and auto insurance bundle can already cut costs – but there are ways in which you can maximize this.
Let’s see exactly how you can cut costs if you bundle home and auto insurance.
Get Quotes From Several Different Companies
Each carrier operates with different rating systems. That’s not advice, but rather an obligation that you should check multiple home and auto quote before you settle on your final one.
For instance, your bundling discount can bring your price down by 20-25%, but if you notice that the underlying rate is considerably higher, you might want to pull away and check with other carriers and their insurance quotes.
Use All The Discounts
If you have the chance to use discounts, take it.
Even if you have a multi-policy discount on your auto insurance and home insurance, this doesn’t stop you from applying for additional ones. As we mentioned, saving money is your goal, and multi-policy discounts can help a lot – but they’re not your only option.
A home insurance policy deductible implies the money that you’ll have to pay out of pocket if you file a claim for the damage caused to your property.
If you purchased full auto coverage with your car insurance company, then you have two deductibles – comprehensive and collision. But the thing is, when you raise the deductibles, you lower the premium. Subsequently, you’ll have to pay out of pocket if you file a claim.
The point is – choose a deductible level that fits your budget.
Review Policies When Life Events Occur
After you’ve spent several years with your insurer, you get a chance to get loyalty discounts – and that is great news. Still, shopping around and looking at other insurers and their financial strength ratings allows you to see the bigger picture – and ensure you’re still getting a fair deal.
Auto And Renters Insurance Bundle
If you decide on a renters policy and car insurance bundle, you can save up to 5%. Granted, the savings might not be as high as with homeowners policy – but the bundle discount is still worth it.
Before you do so, here’s information that you should consider first:
- Personal information regarding all individuals that live in the residence
- The estimated value of the property in question
- Desired liability limits
- List of valuable items that might need additional coverage
- Personal information on all drivers on the property (driving license, DOB, driving history, the timeline of major violations, etc.)
- Vehicle information (VIN included)
- Address of residence
- Insurance history
Simple Tips To Save Money On Insurance
If you opt for bundling your auto policy and renters policy, here’s how you can save some money:
- Be careful before you file a claim: We’ve already discussed this, but you should generally only file a claim under certain circumstances. For example, if someone’s injured, if you’re at fault, or if the damage value or car replacement is greater than your insurance.
- Triple-check your discounts: Always have a second look at your discounts. With auto bundle discount, make sure you check out the good driver discount, paid-in-full discount, eSignature discount, and the like.
Although these tips will surely help, the only way to know for sure if you’re getting a fair deal on your auto and renters policy is to shop around and assess multiple policies.
Motorcycle And Car Insurance Bundle
You also have the option to bundle your motorcycle and auto policy. It’s deemed not only convenient but cost-effective, too, because it could easily save you hundreds of dollars you’d otherwise spend on premiums.
Here’s the deal – there are a couple of bundles, and they’re based on factors such as the driver’s history and location. So, before you finalize your choice, do some additional research because some motorcycle and auto insurance bundle deals include roadside assistance, custom parts coverage, or even rental car reimbursement.
How To Bundle?
It’s simple; just follow the steps outlined below.
Assess your needs:
First, you need to have a brief idea of how much coverage you need. Of course, this depends on several factors – both budget and safety-wise.
With motorcycle insurance, check whether they offer lay-up coverage – this helps drivers a lot during the winter when driving is considered especially dangerous.
Gather the information and collect quotes:
To get the best deal, you should look at multiple options. Make sure that you have all the information required to compare policies. While some companies allow you to do this via computers, others require doing it face-to-face with a financial advisor.
Compare quotes and consider the features:
It’s clear that you’re bundling motorcycle and auto insurance because you want to save time and cash. Still, it wouldn’t hurt to consider other features, especially the safety-related ones.
For instance, maybe the company offers helmet protection – and you could definitely use that.
Policyholders have the option to bundle home and auto insurance, renters and auto insurance, or even motorcycle and auto insurance. By bundling each of them, you have the advantage of receiving bills on one account, making use of discounts – and adjusting coverage according to personal needs.
However, when doing so, extensive research needs to be conducted so as not to get “scammed,” ripped off and left with coverage that barely covers the new car replacement, for example.
Reviewing quotes is key here – and that’s why we’ve dedicated our time to helping you get the most out of it.
At Insurance Geek, we work with multiple respectable carriers all around the US. Make sure to contact us for more information and get your insurance quotes today!