Renters insurance helps you protect precious belongings and treasured keepsakes from any hazard.
But here’s something you might not know: if you also own a vehicle, you can purchase auto and renters insurance from the same provider—scoring serious discounts on your premiums!
When you’re getting two different insurance policies from the same carrier, it’s even more important to choose the right provider.
Insurify lets you compare auto insurance quotes from leading insurance companies nationwide. With Insurify, you can save time, save money, and feel confident that you’re getting the steepest deal.
Table of Contents
- What is renters insurance?
- What does renters insurance cover?
- Who offers car and renters insurance bundles?
- Saving the most on your car and renters insurance bundle
- Other car and renters insurance discounts
- How to get a quote for both car and renters insurance
- Car and Renters Bundling: Pros and Cons
- The best way to save on car insurance costs
What is renters insurance?
Most Americans are familiar with car insurance policies. Policyholders pay a monthly premium so that medical expenses, legal fees, and property replacement costs are paid for by their insurer in the event of an accident or other mishap.
With rental insurance, those renting a home, apartment, or condominium pay a monthly premium to their insurer for a combination of personal property coverage, personal liability coverage, and coverage for additional living expenses.
Let’s break that down in the table below.
|Coverage Type||What It (Usually!) Covers||What’s (Usually!) Not Covered|
|Liability||May cover medical payments or property bills if you accidentally damage someone else’s property or a guest hurts themselves in your residence||Any liability costs that exceed your coverage limit, damage to your personal property, additional living expenses|
|Personal Property||The cost to repair or replace your personal belongings should they be damaged or stolen||Damage to personal property over your coverage limit, liability damages, or additional living expenses|
|Additional Living Expenses||Additional coverage that pays for hotel bills or other living expenses if your current residence is damaged or otherwise not habitable||The cost of repairing damage to your rented residence (your landlord’s insurance policy may cover that)|
Keep in mind that this table is only an introduction to the wonderful world of renters insurance––renters insurance companies often offer many other optional add-ons and coverage types.
What does renters insurance cover?
While homeowners insurance policies cover both the structure of your house and your personal property, renters insurance only covers personal property damage. That’s because if you’re renting, fixing up the building itself after something goes wrong is the responsibility of your landlord.
However, landlords aren’t required to replace or repair your personal belongings if fire, vandalism, water damage, or another disaster damages both your home or your possessions. That’s why having renters coverage can give you peace of mind.
You might be surprised by how affordable renters insurance is. Since they don’t cover damage to the building itself, renters policies cost much less than a full home insurance policy. According to the Insurance Information Institute, the average cost of renters insurance in the U.S. was $180 annually, compared to $1,211 for homeowners insurance.
But that doesn’t mean renters insurance can’t present a high cost for you and your family. Take a look at the average price of renters insurance in 2017 in five different states: California, Florida, Illinois, New York, and Texas.
No matter how you look at it, $200 is a hefty chunk of change. That’s why it’s so important to use a leading online quote comparison site like Insurify, and to keep an eye out for potential discounts from your local agent or insurance agency.
Who offers car and renters insurance bundles?
Auto insurance is available from all the major insurers and any number of smaller carriers. Renters insurance is a less common product but is available from most carriers who also offer homeowners insurance.
Here’s a sampling of insurance companies that offer both auto insurance and renters insurance quotes, along with discounts for bundling the two policies.
GEICO is one of the largest insurers in the U.S. and offers both renters insurance and auto insurance. What’s more, buying both policies from GEICO can make you eligible for their multi-policy discount. You can get additional discounts on your renters policy if you have security features like a burglar alarm, a smoke alarm, or fire extinguishers.
Allstate Insurance was #3 on Insurify’s Best Homeowners Insurance Companies of 2020 and offers the option to bundle your auto insurance and renters insurance policies for a substantial discount. You can get a renters insurance policy through Allstate for as little as $4 per month. Other deals include the “55 and retired discount” for retirees, a claim-free discount that saves you money for every year you don’t make a claim on your renters insurance, and an auto-pay discount.
State Farm says that you can save up to $854 by bundling your auto insurance and renters insurance with the carrier. The company’s premiums for renters insurance are competitive. According to the State Farm website, in 2018, the average State Farm premium for $35,000 of renters insurance coverage was $15 per month. You can keep your premiums low by qualifying for other discounts, such as the home alert protection discount (for owning a security system for your home). All these perks help explain how State Farm made it to the #10 spot on Insurify’s Best Homeowners Insurance Companies of 2020. State Farm also offers life insurance and homeowners insurance policies.
Progressive offers an average discount of 12 percent for bundling your renters and auto insurance policies through them. However, be aware that Progressive’s renters insurance is actually offered through a third-party insurer. (Progressive does directly provide car insurance coverage.)
Like other major carriers, Nationwide will give you a discount for bundling your auto insurance and renters insurance. Nationwide’s lowest-cost renters insurance coverage is $20 a month—significantly more than some other carriers. However, renters who need extensive coverage might still get a great deal through Nationwide. In addition to discounts for protective devices like burglar alarms, Nationwide provides a free annual On Your Side Review. During the review, an agent will ask questions to confirm whether you have the right coverage and to see if you qualify for any additional discounts.
Saving the most on your car and renters insurance bundle
- Before you start comparing quotes for renters insurance, do a quick inventory of your belongings and valuables. This will give you a good idea of how much property coverage you will need to buy for your renters insurance policy.
- Set your deductibles as high as you can manage. Ideally, your deductible for both renters and auto insurance will be low enough that you can afford to cover said deductible in an emergency but high enough that you will only want to put in a claim if there’s significant damage.
- Make sure to shop around for policies every time your renters or auto insurance policy is up for renewal. The company that was the best choice last year may no longer be a great deal for you this year, so comparing prices through a comprehensive site like Insurify can score you substantial savings in minutes.
- Read each policy carefully for potential exclusions and loopholes. Buying a car or renters insurance policy does not guarantee you a fully covered loss, and every contract has exceptions. Make sure you carefully understand the terms of your policy before you sign.
Other car and renters insurance discounts
- Many insurers offer discounts based on safety features and security systems for both car and renters insurance policies. For renters insurance, this usually translates to protective devices like smoke alarms, fire extinguishers, and home security systems. For auto insurance, discounts are often available for airbags, anti-theft systems, and blind-spot detection.
- Belonging to certain organizations or professions may get you discounts on your insurance premiums. For example, AAA membership often makes you eligible for discounts, and many insurers offer military discounts for both active military personnel and veterans.
- Choosing to make annual payments on your policy instead of monthly payments can get you a small discount on your premiums. Some insurers will also offer a discount for receiving your bills electronically instead of getting paper bills in the mail.
How to get a quote for both car and renters insurance
When you’re shopping for insurance, let your insurance agent know that you’re interested in getting both an auto insurance and renters insurance policy from them. That way, you can be sure that you’ll get the appropriate multi-policy discount.
Many major insurers also offer online quoting tools that you can use to calculate potential discounts from bundling home and renters insurance.
Car and Renters Bundling: Pros and Cons
Bundling home and auto insurance comes with both benefits and drawbacks. Learn more in our table below.
Car and Renters Insurance Bundles: Pros and Cons
|Savings. Bundling your car and renters policies often means lower total premiums than purchasing each separately.||If you’re eligible for specialized discounts or coverage options, buying a bundle from a single provider can still be more expensive than two separate policies.|
|Convenience. When you buy both policies from a single provider, you’ll have one simple point of contact for all your insurance needs.||Buying separate policies from separate providers means the headache of managing two separate insurance agent relationships.|
|Simplified payments. Bundling your auto and renters insurance means paying just one single monthly premium. That’s awfully convenient!||If you own two or more separate insurance policies, you’ll need to remember to pay separate monthly premiums.|
The best way to save on car insurance costs
Getting a car and renters insurance bundle can save you tons of money. But to choose the best insurance company for your car and renters insurance, you still need to compare quotes from eligible providers.
Luckily, Insurify makes it easy to quickly compare car insurance quotes online. With an average user rating of 4.8/5 from 2,900+ reviews, Insurify is the #1 highest-ranked insurance comparison platform in America. Give it a try today!
Car and Renters Insurance FAQ
How do I bundle policies if my renters and auto insurance renew at different times?
Start by deciding which insurance company you want to provide both your auto and renters insurance policies. First, move over whichever policy renews first; when the second policy is due for renewal, contact the insurance provider and tell them you want to bundle the new policy with the old one. You should then be eligible for the multi-policy discount and any other bundling benefits.
What’s the best insurance company for getting both car and renters insurance?
There is no one best insurance company for everyone because different carriers look at different factors to calculate insurance rates, and they often weigh those factors differently. The insurance company that provides cheap auto insurance for your neighbor may not be the most affordable option for you. The only way to find the best insurance company for you is to compare quotes from multiple providers (made easy with a href="https://insurify.com/blog/car-insurance/the-best-and-worst-sites-to-compare-car-insurance-quotes/">quote comparison sites like Insurify).
What's the best insurance company for auto, renters, AND life insurance?
If you want to bundle your auto insurance policy, renters insurance policy, and life insurance policy there’s certainly nothing stopping you. The more policies you have with a particular insurance company, the happier they’ll be—and they may be willing to extend a substantial discount or other benefits to you for giving them such a large portion of your business. If you’re eager to bundle three or more types of insurance policies at a single company, ask whether they’ll extend you an extra-large multi-policy discount in exchange.