Great question! If you’re paying for home insurance and car insurance, why not put both policies with one company and get a nice discount, right? Well, it's not always that simple. The answer depends on your individual situation. Ask yourself a few questions to see if bundling home and car insurance is the right move for you.
Have you looked at the bottom line?
The potential benefit of bundling your policies is price savings. Most carriers offer 25% discounts when you bundle your home and auto insurance with them. But that doesn’t mean you’ll end up paying less if their rates aren’t competitive to start with. That’s why it’s best to have an independent agent shop for you. They will make price comparisons that include base rates and discounts to see your bottom-line price for all your coverages.
Have you looked at the big picture?
Finding the right coverage for all your assets can be time-consuming. Here again, an independent insurance agent can do the heavy lifting for you. They can look at the coverages for all your property -- home, cars, valuable jewelry, boats, motorcycles. If you can do it all with one insurance carrier, great! But an independent agent will help you find the right insurance products and bundling discounts when it makes sense. Find a local agent and let them personally shop for you with all your insurance needs laying out in front of them. They can compare rates from different carriers with and without bundling and find you the best fit.
Are you sure you have enough coverage?
The whole point of insurance is to make sure you’re protected against a large loss. Always start the shopping process by making sure you know how much coverage you truly need. While bundling might save you money on your premium payments, you can pay much more if you’re not adequately covered and have a significant claim. You can save money in other ways, such as discounts and raising your deductibles. But generally speaking, if you have to compromise on better home protection, bundling might not make sense for you. Discuss this with your local agent to make the best decision for your situation and needs. Remember, the cheapest rates are not always the best way to save money on insurance.
How important is convenience to you?
You may really love the different aspects of a carrier's car insurance. For example, because we're a Virginia-only insurer, we know it's important for our members to have no-fault claims on deer collisions. Some car insurance carriers don't offer home or property insurance and vice versa. In that case, you'll have to find coverage for those needs elsewhere.
Keeping two separate insurance policies with different carriers may be tedious when it comes to account management. Think about the extra logins, passwords, billing, claims, and general communication. Managing your home insurance and car insurance in one place can save you time and makes things more convenient.
Getting the right fit, bundle or not
The best way to save money and have the best coverage for your insurance portfolio is to review your insurance policies every year or two. Have an independent agent assess your current coverage and shop around for you, especially if your rates have gone up more than 10%. And remember, if you’re shopping online, be sure you’re getting quotes for the same level of coverage or intentionally more or less if your needs have changed.