Is It a Good Idea to Bundle Car and Home Insurance?
The answer is yes. Yes, it is a good idea to bundle car and home insurance by simply getting multiple policies from one insurer.
But before we talk about why it is a good idea to bundle car and home insurance together, let’s first and foremost look at how bundling home and auto insurance work.
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How do bundling home and car insurance work?
Insurance bundling simply means buying your home insurance and car or other coverage from the same company for the purpose of saving cost and making it easier to manage your policies. If you understand how insurance companies make money you will better appreciate their reasons for bundling insurance.
Why experts suggest that you bundle your car and home insurance
One of the most interesting reasons why experts advise that you bundle your car and home insurance is because it can help you slash down your premium by 16.1% depending on the insurance provider you decided to buy your policy from.
An average consumer will most likely save at least 16.1% on their premium each time they bundle two products like homeowners and auto insurance. Depending on the insurer and where you live, you can save up 30% on your premium when you bundle your auto and homeowners insurance.
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Here are the advantages of bundling your car and home insurance policies:
- You will save money on premiums: Progressive says you can save as much as $1,000 annually when you bundle car and homeowners insurance whereas Allstate says you will save 25% on your premium when you buy at least two products from them. You may need to read the Allstate car insurance discount options and the cost of Allstate car insurance for Lyft and Uber.
- You will pay a single deductible: If an incident, like a major storm, damages both your home and car, some insurance companies will only make you meet one deductible before it pays out. If your insurance weren’t bundled, you’d need to pay two deductibles to two different companies.
- Bundling insurance can reduce your chances of having your policy canceled: Most experts believe that having multiple policies from one insurer can help reduce your chances of getting dropped should something go wrong.
Disadvantages of bundling your car and homeowners insurance
The number disadvantage of bundling your auto and home insurance is that there’s no absolute guarantee that doing this will often help you to save money. If you truly take the time to shop for a more affordable car or home insurance policy, you might be surprised that you will get cheaper coverage elsewhere.
It’s always a good idea to compare rates with other insurance providers to be sure you are getting the best deal. These days, you can compare insurance quotes online or via phone calls. Do this comparison every year to be sure you are still getting your car insurance rate and home insurance rate bundled together at the best price.
Bundling insurance might seem like a cheaper alternative and of course, it is because it will help you save cost on your premiums but in the subsequent year, you might be forced to start checking other cheaper insurance options.
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Other ways to save money on your car and home insurance without bundling them together
- You can shop around for more affordable car and home insurance policies
- Compare insurance costs before you buy a car and if you can’t afford it, avoid buying cars that are too expensive to insure. Here are the cheapest cars to insure.
- Raise your deductible. You may need to read these FAQs about vanishing deductible.
- Reduce optional insurance on your older car.
- Stick with the same insurance provider
- Maintain a good credit history and you will always get a cheaper
- Take advantage of low mileage discounts.
- Ask about group insurance. You will find companies offering it.