Today, the concept of “bundling” is household—cell phone bills, streaming applications, and even shampoo and body wash are a two-for-one deal. Like all of these bundles, bundling home and auto insurance is also becoming more and more commonplace. But how does bundling insurance policies work, exactly? Is it beneficial, or are there drawbacks?
Weed Ross has decades of experience as a local insurance agency and an extensive network of carriers that we work with on a regular basis. So with decades of experience working hand-in-hand with our clients, as well as sitting at the table with the big dogs, we’ve become extensively familiar with all of the secrets of the insurance world. So, when it comes to the idea of bundling your home and auto insurance, who better than us to give you the lowdown? So let’s dive a little deeper and explore the ins and outs of bundling your home and auto insurance policies.
In this article, we’ll cover the following:
- Key Considerations Before Bundling Home and Auto Insurance
- The Pros and Cons of Bundling Home and Auto Insurance
- How Bundling Home and Auto Insurance Can Save You Money
Key Considerations Before Bundling Home and Auto Insurance
Let’s cut to the chase: bundling your home and auto insurance is great because it often saves you money on your monthly premiums. However, bundling isn’t always a no-brainer. Make sure to compare the total prices of the individual policies of choice, but also consider the levels of coverage.
For instance, if your car insurance is particularly expensive due to a history of infractions or poor credit, you may find that working with a separate company that specializes in these types of policies is ideal for your car insurance and that bundling only makes things more complicated. Or perhaps you have a luxury or classic vehicle—your car insurance payment might just be better off on its own. In these types of circumstances, like many others, it’s crucial to work closely with your local insurance agent to understand what options are best for you.
The Pros and Cons of Bundling Home and Auto Insurance
Like most cases in the insurance world, bundling your home and car insurance has its fair share of pros and cons. Insurance carriers generally want to capture as much of your business as they can, so they often don’t elaborate much on the cons. But as your friendly neighborhood insurance agency, we’re going to take a crack at it.
Pros of Bundling Home and Auto
- Save Money
Many carriers advertise that you could save up to 25% when you combine multiple policies, and home and auto is one of the most common bundles.
- Meet one deductible
Some insurance carriers only require their clients to meet one deductible before paying them out. So, if both your home and car are damaged by a single incident, you’re more likely to meet your deductible immediately.
Cons of Bundling Home and Auto
- Becoming complacent
Insurance carriers who offer bundles are able to provide lower rates because a bundle makes you less likely to shop around. With just one policy, it often becomes so easy that people forget to check their premiums and don’t notice when rates rise over the years.
- Not always what it looks like
Many insurance carriers utilize affiliates, and you may lose out on the convenience of dealing with just one account. If you or your insurance agent aren’t thorough when setting up your policy, you may wind up with multiple insurers, even with a bundle.
How Bundling Home and Auto Insurance Can Save You Money
Insurance is a highly competitive industry, so insurance carriers are keen on brand loyalty. Accordingly, these carriers like to offer discounts for choosing them for more than one policy—the way they see it is: the more business they receive from you, the better.
Bundling your home and auto insurance is both the most common and the most cost-effective form of bundling insurance. Consumers often save over 10% or even 15% on their monthly premiums when they combine these two policies. Some insurance companies will even allow you to add more policies to the bundle, like renters insurance, life insurance, secondary home insurance, and more.
Your discounts, in particular, however, depend largely on a few key details. How is your credit? Where do you live? What’s your driving history like? What is your favorite color? Okay, we’re pulling your leg on the last one. But the previously mentioned details do come into play. Be sure to talk with your local insurance experts to find out what type of bundle is right for you.
Still wondering whether or not you should bundle your home and auto insurance? Did you want to tell us your favorite color anyways? Guess what—we’re here for you either way. Contact the local insurance gurus at Weed Ross, and we will happily help however we can.