Maximize Your Fall Savings: Bundling Auto and Homeowners' Insurance
When the light fades and the leaves change, you know fall isn't far off. Whether you're out for a drive admiring the colors of autumn or curling up at home by the fire, insurance protects you from the unexpected. If you drive and own a home, chances are you have separate insurance policies to protect both your car and house. Most people view these as separate policies with separate transactions, but bundling home and auto insurance can yield considerable financial savings around harvest time. If you want your insurance costs to drop as quickly as the temperatures on a crisp autumn evening, read on to learn how bundling home and auto insurance can maximize your fall savings.
What Is Bundling Insurance and How Does It Work?
Bundling is a sales strategy commonly employed by many major insurance carriers. Insurance companies offer discounts to customers who take out multiple types of insurance policies with the same company or one of the company's approved partners. Depending on the company, you'll receive additional discounts for different types of policies included in the bundle. Policy types include but are not limited to automobile, home, renters, condo, and even life insurance.
For instance, some carriers offer consumers the opportunity to bundle automobile, home, renters, condo, and life insurance in a variety of combinations. Still, keep in mind the savings will vary depending on the company and policies you select, as well as personal factors such as your driving record, age, and state in which you live.
Interestingly, some companies may allow you to bundle policies that consist of more than housing. An example of this may look like offers that bundle on motorcycle and boat coverage, boat and RV coverage, and more.
How Can You Maximize Savings When Bundling Insurance Policies?
As you start to consider bundling auto and homeowners insurance policies, you want to utilize every discount you can. Bundling is usually the best option, but you should still check to see how much each policy would cost individually. As you do so, check to see what other discounts the insurance carrier offers. While unlikely, it's possible you could maximize savings by keeping your policies separate. You won't know until you check.
There's also a chance you can apply those additional discounts you discovered to your bundled policies, as well. Of course, this will vary from one company to the next, but many companies offer discounts that can be applied to your policies. These include discounts for military members, safe drivers, or students, as well as loyalty discounts for long-time customers. Combining these additional discounts with the policy bundling offers you the best chance to maximize your savings on insurance.
What To Look for in an Insurance Provider When Considering Bundling
Some people treat finding the right insurance company as if they are bobbing for apples. Just close your eyes, dive in, and hope for the best. Unfortunately, this approach can create big messes for your financial future. As you consider bundling insurance, there are a few things you should check before you sign on the dotted line.
First, ask how long the company has been in business. You may think twice before bundling with an insurance company that has yet to pay its first claim. Conversely, a proven track record may provide you some peace of mind.
Second, the company's financial stability should be checked to better understand its current and future financial health and standing.
Third, discern what limits the insurance carrier may place on bundling policies. A company that offers additional discounts for the third and fourth policies may be a better fit than a carrier that caps discounted policies at two.
Finally, make sure you purchase the coverage you actually need. In other words, don't get baited into unnecessary coverage because the price is too good to pass up. If you don't need it, don't waste your money on it.
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The Benefits of Insurance Bundling
Bundling your insurance policies together can bring a bushel of benefits. While the benefits to your budget are nothing to sneeze at, they aren't the only benefits you can expect to see from bundling. Bundling insurance offers you discounted rates, simplified bill paying, and a one-stop approach.
The first benefit of bundling is the most obvious: You get discounted rates. Don't own a home? No problem. Most carriers offer renters' policies that you can bundle with your car coverage, so you may be eligible for auto and home insurance discounts even if you rent.
Bundling also simplifies your bill paying. Whether you pay annually, bi-annually, quarterly, or monthly, paying your insurance on time is a must. If you don't and you have a car accident, your policy may be canceled. Bundling keeps your premiums in one place, so you can be sure not to miss a payment.
This one-stop setup not only makes it simpler to pay your premiums but also makes it easier to manage your policies. Instead of going from site to site to check the specs of your home, auto, and boating policies, you can access them all on one interface without having to guess which username and password you might have used for three different websites.
Are There Any Drawbacks to Bundling Auto and Homeowners' Insurance?
While bundling your home and auto insurance brings many benefits, it can also have some drawbacks. For instance, bundling insurance is usually a great way to find cheaper insurance, but that's not always the case. Depending on the company, type of policy, and other discounts offered, you may pay less by choosing the policies a la carte from one or multiple insurers. In this scenario, you may want to sacrifice the simplicity of a one-stop insurance program in favor of a lower rate.
It's also not uncommon for insurers to raise rates over time. For this reason, bundling your insurance does not mean you should "set it and forget it." If you do, you may end up paying more, effectively negating the discount you earned by bundling. So before you set your bundled policies to auto-renew, consider the downside of renewing a contract you haven't read. By the same token, some companies charge a fee to cancel bundled policies, so if you think there's a chance you may have to cancel, be sure to know what it will cost.
How To Bundle Your Insurance Policies
You can learn how to bundle insurance policies in the time it takes to sip a pumpkin spice latte. It starts with doing your homework. Bundling is a relatively complex process that you can simplify by asking the following questions:
- Who? Which insurance carriers have proven track records, financial stability, and the best discounts for the policies you need?
- What? Which insurance policies do you actually need? A discount for bundling motorcycle insurance may look great, but only if you ride a bike.
- When? When was the last time you re-evaluated how much you're paying for home or auto insurance, and how much have prices changed since then?
- Where? Do car insurance rates tend to be higher or lower where you live? Is the insurance carrier licensed to operate in your state?
- Why? Ask yourself why you want to bundle in the first place. Are you looking for lower costs versus simplified policy management or vice versa? Knowing what you want will help you find the coverage you need.
Once you've done your homework, it's time to request quotes from as many insurance companies as you can. The more quotes you have, the better your chances of finding the best price for bundling your home and auto insurance.
When you have the quotes in hand, you're ready to analyze the data you've gathered. Make a chart or table so you can visualize your results more easily. As you pore over the information, remember to reflect back on your needs and priorities to guide your evaluation. A huge discount on a policy you don't need doesn't actually save you money.
Bundling Up
When the days grow shorter and the cold is coming, it's time to bundle up. Similarly, as the temps drop and the leaves fall, you should consider whether bundling your home and auto insurance is a good move for you to prepare before winter comes. When you bundle your insurance policies, you get a discount for making things easier on yourself. You could save money even as you simplify both your payment process and your insurance policy management. Just remember to do your due diligence. Research the company and know your own needs so you find the best fit at the right price.