Most of us begin our journey with insurance when we start to drive. Often we are added to our parents’ car insurance policy to help keep costs down while we build up a safe driving record and insurance history. The next step is either getting your own car insurance policy or moving out and needing renter’s insurance. Or you’re buying your own place and require home insurance.
But do you ‘bundle’ your home and car insurance? Many people don’t – and this article can explain why this may be a good decision or a bad decision based on your situation.
Bundle Your Home and Car Insurance and Save
Bundling your home and car insurance with the same insurance company can save you money. Many insurers offer discounts if you have more than one policy with them. Although not every policy type applies, home and car insurance are two that would be an accepted bundle if the insurer offers a bundle discount.
Other Advantages to Bundling Your Home and Car Insurance
There are several other distinct advantages to bundling including:
- Coverage gaps are minimized when all policies are held with one insurance company.
- Many companies allow consumers with bundles to pay only one deductible versus one for each policy.
- Some insurance companies offer additional coverage at no charge when consumers bundle home and car insurance with their company.
- Consumers have the convenience of only one insurance company handling their policies.
When to Avoid Bundling Your Home and Car Insurance
In some situations, the savings may not be worth bundling your home and car insurance. This includes:
- Your insurer doesn’t offer a bundling discount.
- The coverage isn’t adequate to your needs or they don’t offer the coverage you want.
- You have an auto claim but had accident forgiveness or some variation on your current policy.
Your insurance broker should help advise you on if bundling your home and car insurance is the right decision for your needs.