If you rent rather than own your home, renters insurance is a great way to protect your precious belongings. Better yet, if you also own a vehicle, you can get your auto and renters insurance from the same provider—which can result in substantial savings 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 car insurance quotes from top companies, so you can feel confident that you’re making the right selection.
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 bit less common but is available for most carriers who also offer homeowners insurance. (Insurers typically class renters insurance as a specialized version of homeowners insurance.) Here’s a sampling of insurance companies that offer both auto insurance and renters insurance, along with some benefit for bundling these 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. Available discounts 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). Not incidentally, State Farm made it to the #10 spot on Insurify’s Best Homeowners Insurance Companies of 2020 list.
Progressive offers an average discount of 12 percent for bundling your renters and auto insurance policies through them. However, be aware that its renters insurance coverage is actually offered by a third-party insurer; Progressive will directly provide the car insurance coverage. It’s a good idea to find out from Progressive just who will be providing the renters insurance coverage and then do a bit of research on that carrier to make sure it’s someone you want to work with.
Like the other major carriers, Nationwide will give you a discount for bundling your auto insurance and renters insurance. It might not be the best choice for renters who don’t need much coverage, however, since Nationwide’s lowest-cost renters insurance coverage is $20 a month—significantly more than some other carriers. However, renters who need lots of coverage might still get a great deal through Nationwide. In addition to discounts like the protective device discount (for burglar alarms, smoke detectors, and the like) and a claim-free discount, 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.
What does renters insurance cover?
Renters insurance is a sort of “homeowners insurance lite” policy. While homeowners insurance policies cover both the structure of the building 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 there is a fire, vandalism, water damage, or another disaster that affects both your home and your possessions. That’s why having renters coverage can give you peace of mind. Since it doesn’t cover the building itself, renters insurance costs much less than a full homeowners insurance policy. Plus, like home insurance, renters insurance typically includes liability coverage.
Saving on both car and renters insurance
Making the right choices when you purchase your auto and renters insurance policies can save you a lot of money.
Getting the most from your car and renters insurance bundle
- Before you start collecting quotes for renters insurance, do a quick inventory of your belongings—particularly the more valuable ones. This will give you a good idea of how much property coverage you will need to buy, which is crucial when purchasing a 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. A high deductible makes your insurance premiums much lower, and it discourages petty claims—an important factor since having a lot of claims on your record can raise your insurance premiums and even inspire your carriers to cancel your policy.
- 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 can really pay off.
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 smoke alarms, fire extinguishers, home security systems, and the like. For auto insurance, discounts are often available for airbags, anti-theft systems, blind-spot detection, and so on.
- 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 have 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, so be sure to ask your agent or customer service representative whether such a discount is available. Some insurers will also offer a discount for receiving your bills electronically instead of getting paper bills in the mail. These are small discounts, but they can add up to real savings over time.
How to get a quote for both car and renters insurance
When you’re shopping for insurance, let the 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, including some of the ones listed in this article, have online quoting tools that you can use to get both quotes in one sitting.
Car and Renters Insurance: The pros and cons of bundling
If you bundle home and auto insurance, you’ll have to deal with benefits and drawbacks. Consider some of the most common pros and cons of bundling your policies.
Pro: You’ll likely pay less on your total premiums for car and renters insurance by bundling your policies instead of having them with different insurance providers.
Con: You could be missing out on some specialized discounts or coverage options on your auto policy or renters insurance premiums. In some cases, one company might offer you the lowest rate on auto insurance while a different company gives you a significantly more affordable renters insurance premium.
Pro: If you have a car and renters insurance bundle, then both policies will be with the same provider, and you may well have a single point of contact to call when something goes wrong. If disaster strikes, you’ll only have one phone number to remember.
Con: If your insurance provider has poor customer service, you’ll have to work much harder to get questions answered and claims filed. If both your renters and car insurance policies are with that provider, you’re twice as likely to have a major hassle when filing claims.
Pro: If you live in a high-risk home, such as one located in an area with many natural disasters, you may find it challenging to get a renters insurance policy. However, if you are willing to buy multiple insurance policies from a company, that insurer may be more willing to extend coverage to your relatively risky home.
Con: Your insurance company may later cancel your renters insurance policy if the risks prove excessive. In that case, you could potentially lose your auto insurance coverage as well—and a lapse in car insurance can have legal consequences.
Pro: Having both auto and renters insurance policies in one place means you may be able to send a single payment for both policies, which is quite convenient. Even if you can’t bundle your payments, you can at least send them to the same place.
Con: If you decide to cancel your policies, you’ll need to move both your renters and auto insurance policies to a new provider at the same time, which can further complicate an already complex process.
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 as well. Thus, 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.
What about auto, renters, AND life insurance?
If you want to bundle your auto insurance policy, renters insurance policy, and life insurance policy…well, 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.
The best way to save on car insurance costs
Getting a car and renters insurance bundle can save you tons of money, thanks to multi-policy and other discounts. But in order 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. Give it a try today!