What is insurance bundling?
Combining your home and auto insurance policies, or even your condo insurance, renters insurance, and even your life insurance policies can save you big on insurance. Companies appreciate loyalty and will reward you for sticking with them by discounting your policies if you choose to bundle them.
Home and auto insurance packages are becoming increasingly common offerings for the homeowner-driver hybrid.
According to the U.S. Census Bureau, homeownership rates topped 64 percent during the first months of 2019. Since most American adults are also licensed drivers, that means most people need both homeowners insurance and auto insurance. So why not bundle the two policies and reap the benefits?
Bundling your homeowners and auto insurance policies simply means that you’re getting both policies from the same insurance company. Bundling is particularly convenient if you can find an affordable package that includes sufficient coverage for your car insurance and home insurance policies. But not all car insurance companies offer home insurance, and vice versa. So how do you get the best car and home insurance bundle?
As you’ll see, when you compare home insurance on Insurify, many insurance providers offer significant discounts and other benefits if you purchase both homeowners insurance coverage and auto insurance from that insurance company. And in this article, we’ll outline the best companies based on customer satisfaction and financial security.
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Home Insurance Bundle Comparison
Joint home-auto policies are quite standard among the major insurance companies. Insurance companies that offer home and auto insurance bundles include:
- Allstate: Allstate offers an “Auto and home” multi-policy bundling discount that can allow drivers to save up to 10 percent on auto insurance and 25 percent off home insurance.
- GEICO: GEICO claims that combining home and auto insurance policies can lead to “real savings” through their Multi-Policy Discount. (GEICO also offers this discount when bundling car and renters insurance.)
- Liberty Mutual: Liberty Mutual offers Auto + Home bundle quotes and advertises their Multi-Policy Discount option to their “already competitive rates.” Registering for a Liberty Mutual account with eService can let customers pay bills and manage their insurance claims all in one place.
- Nationwide: Multi-policy bundling discounts abound for Nationwide customers, who can save on insurance by bundling some combinations of the following: homeowners insurance, renters insurance, auto insurance, life insurance, motorcycle insurance, and boat insurance.
- Progressive: Progressive claims it can save new customers an average of $1,029 when they bundle home and auto insurance. Other coverage options include auto and renters insurance, “any two or more products,” and personal insurance.
- State Farm: State Farm contends that policyholders can save up to $854 when they bring their auto and dwelling insurance together.
Nearly every insurance company that offers both homeowners and car insurance policies will give you some kind of perk for bundling these policies. The trick is to compare bundling packages between insurers to be sure that you’re getting the best possible deal. Find the best home insurance companies here.
Saving on Your Home and Car Insurance Bundle
Most insurance companies that sell more than one type of coverage will give you a multi-policy insurance discount. Bundling your homeowners and auto insurance policies makes you automatically eligible for this discount. Always compare quotes from the best home insurance comparison sites before signing on the dotted line. Combining separate policies into bundled policies can get you the best price on all your insurance needs.
A few insurance companies also offer more specialized discounts that you can claim by bundling policies. For example, some insurance companies will give you a discount for being a homeowner regardless of whether you buy homeowners insurance from them. If you pick up both a homeowners and auto insurance policy from such a company, you can get both the multi-policy discount and the homeowner discount.
Some home and auto insurance companies offer an additional benefit: single deductibles. That means that you just pay one deductible a year, whether you use it on your home, car, or both. This is especially helpful for weather-related property damage when both your home and car need repairs.
First-time homebuyers may be eligible for exclusive perks or discounts from their homeowners insurance company. For example, Allstate has a first-time homebuyer resource center with articles and calculators to help out when buying and insuring your first home.
When you buy a house, the lender providing your mortgage will insist that you have a homeowners policy in place before closing, which may put you under considerable time pressure. However, even if you’re in a hurry, it’s essential to compare home insurance quotes so that you can be sure you’re not paying too much for your home policy.
When comparing policies, don’t forget to match up coverage levels across companies. Insurance companies tend to set different “default” coverage levels on their policies, so if you don’t double-check the numbers, you may end up getting quotes for vastly different insurance products. Use a home insurance premium calculator to better understand how to budget for your monthly costs.
Home and Auto: Bundling Insurance Pros & Cons
If you bundle home and auto insurance, you’ll have to deal with both benefits and drawbacks. Consider some of the most common pros and cons of bundling home and auto policies.
Pro: You’ll likely save money and find the cheapest home insurance by bundling your policies instead of having them with different insurance providers.
Con: You could be missing out on some savings on your auto and/or homeowners insurance premium. Depending on your specific situation, you might find that one company gives you the lowest rate on auto insurance while a different company gives you a significantly cheaper homeowners insurance premium.
Pro: You’ll never wonder which company to call for a claim, question, or concern. If you bundle home and auto insurance, 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.
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 homeowners and auto insurance policies are with that provider, you’re twice as likely to have to deal with the hassle!
Pro: If you live in a high-risk home, such as one located in an area rich in natural disasters, you may find it challenging to get a homeowners policy. However, if you are willing to buy multiple insurance policies from a company, that company may be more willing to cover your home as part of the package.
Con: Your insurance company may later cancel your homeowners 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 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 homeowners and auto insurance policies to a new provider at the same time—which can further complicate an already complex process.
Home and Auto FAQs
Will my home insurance policy always include auto insurance? After all, I garage my car at home.
Standard homeowners policies don’t extend coverage to your vehicle, even if you do store the car at home. If a tree falls on your garage, your homeowners policy will likely cover the cost of fixing the garage but will not cover the cost of repairing your vehicle if it was inside. What’s more, most states have specific minimum auto insurance requirements—your standalone homeowners policy won’t include those types of coverage.
How do I bundle policies if my home and auto insurance renew at different times?
Start by deciding which insurance company you want to provide both your home and auto 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.
Are there any car and renters insurance packages out there?
If you rent rather than own your home, you’ll likely be able to get a multi-policy discount by purchasing your renters and auto insurance policy from the same insurance provider. Most of the providers that offer homeowners insurance bundles will also provide renters insurance bundles—ask your carrier for details.
What about car and condo insurance?
Condo insurance is a specialized type of homeowners insurance, and bundling with your condo insurance and auto insurance policies usually works the same way as bundling your homeowners and auto insurance policies.
What about car, home, AND life insurance?
If you want to bundle your auto insurance policy, homeowners policy, and life insurance policy…well, there’s certainly no 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 if they’ll extend you an extra-large multi-policy discount in exchange.
Compare cheap car insurance rates and homeowners insurance quotes from the best companies with Insurify. We make it easy to reduce insurance costs and find which companies offer the best bundle discounts. Need to discuss your options before you buy? Speak to one of our helpful insurance agents. Try it today!
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