You could get a big discount on your rates if you bundle your insurance policies. Bundling means buying home, auto, or other types of insurance from the same provider. Insurers make it easy to bundle your policies because they offer various types of coverage.
This article will tell you about the best ways to bundle your insurance policies so you can maximize your savings. This includes:
- Defining bundling
- The benefits of bundling
- What types of insurance you can bundle
- How to do it
- Whether you should bundle or not
- Answering common questions
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What Is Insurance Bundling?
Insurance bundling is when you combine other types of coverage under the same company. For example, bundling home and auto under one policy. Doing so can lower your insurance rates. It can also be more convenient to keep all of your coverage under the same carrier.
The Benefits of Insurance Bundling
Bundling your insurance policy has many advantages. The benefits can vary with each company. Some offerings are more generous than others. But every bundling discount share one thing, they all save you money. Here are the main reasons to bundle insurance:
You’ll Save Money by Bundling Insurance
Bundling your auto insurance policy with other types of coverage is one of the best ways to lower your rates. For example, American Family says that customers will save up to 23% if they bundle home and auto with them. These are huge savings that you can’t look past.
Companies also love to reward their customers for their loyalty. Sticking with the same provider for all of your needs can pay dividends. You also get a discount on your premiums if you stick with the same company for a long time. Insurers will see you as a loyal customer and reflect it in your rates.
It’s Convenient to Bundle Insurance Policies
This one’s basic but important. Bundling insurance under the same provider can save you from wasting extra time and stress. You won’t have to keep track of a bunch of different companies and their various prices or renewals. This makes it so you have less paperwork to sort through when managing your finances. Bundling makes it easy to pay for all of your policies with just one payment. Everything will be under one roof. It’s also a comforting fact that you will likely save more money in the long run.
Bundling Can Allow for More Flexibility
Keeping all of your insurance under one provider can provide you with more flexibility. Most carriers are willing to work with you if you need to change or add more coverage. For example, you might want to shift from renters to homeowners if you just bought a new house. You can always add a new product to your policy with no hassle. Insurers and your agent can help you easily add or switch policies while still keeping everything in a bundle.
How Do I Bundle My Insurance?
Insurers make it very easy to bundle your policies together. This is because they offer several packages that you can select, and which fit your needs. To bundle your insurance, you’ll need to contact your desired carrier and get the ball rolling with the policies you desire. Keep in mind that only certain kinds of insurance can be bundled, so you’ll want to know if the insurer you want to work with offers what you need.
Types of Insurance You Can Bundle
Insurers offer multiple products that you can combine together. Here are the most common types of insurance you can bundle:
- Boat and watercraft
These are only some of the coverages you’re able to package together. Be sure to check with your agent to find out what exactly qualifies.
Also, note that not all companies offer the same bundles. You may need to do some research to find what carrier is best for your needs. RateSonic has already done the hard research for you to find the best car and home insurance bundle. All you’ll need to do is compare each company and find the best one based on your needs.
What You Can’t Bundle
While you can bundle many forms of insurance, here are some that you can’t:
- Any type of coverage that your provider doesn’t offer
Bundles only work if the company offers both coverages. For example, if an insurer doesn’t have renters or motorcycle coverage you can’t bundle them with auto. Make sure to check with your agent or insurer to find out if they offer the coverages you want to bundle.
You don’t just have to bundle two coverages together. There’s also the option of having an all-in-one type of policy. This means buying all of your coverage with the same provider for what would likely be a big discount.
How Much Do You Save When You Bundle?
It’s no secret that bundling your policies can save you money. But the savings aren’t the same across the board. You should expect to save anywhere from 4 to 25% by bundling your policies. Progressive claims that their customers save an average of 4% if they bundle.
Here’s a table to help you compare auto and home insurance bundling discounts between the top companies:
|State Farm||Up to $1,127|
|Progressive||4% on average|
|Allstate||Up to 25%|
|American Family||Up to 23%|
|GEICO||Can vary based on rate factors|
|Liberty Mutual||Up to $947|
|Nationwide||Up to 20%|
|USAA||Up to 10%|
|Farmers||Up to 20%|
|Travelers||Up to 13%|
|Erie||Varies by State|
|Farm Bureau||Varies by State|
|Shelter||Varies by Coverage|
|COUNTRY Financial||Up to 25%|
|Mercury||Up to 15%|
|Amica||Up to 30%|
|NJM||Varies by Coverage|
Keep in mind that the discount you get will also depend on different factors, such as:
- Age (under or over the age of 25)
- Where you live
- Driving record
- Car mileage
- Driving experience
These are also rates factors that affect your premium. Insurers use these to calculate your premiums and it’ll be unique for every customer.
What Are the Best Companies for Bundling Home and Auto?
There are several options out there for bundling your home and auto insurance. This is one of the most common bundles that insurers offer their customers. Each company offers its own discount. Keep in mind that how much you save can also depend on rate factors unique to you, such as your age, credit rating, and driving record. These are our top picks for the best home and auto insurance bundles:
- State Farm
- American Family
Should You Always Bundle Insurance Policies?
Bundling policies has great benefits for those who want to do it. But not everyone should. In some cases, it might be cheaper to use different companies for each policy.
Bundling your policies doesn’t always guarantee that you will save money. Rate factors such as your age, credit history, and driving record can affect what type of savings you’ll receive. Providers may also not carry the coverage that you want to bundle, or it may not be for the right price. To make sure that you get the best rates, it’s a smart practice to compare quotes from top companies.
Here’s why bundling might not be worth it:
- After comparing, it’s clear that you will save more by using separate companies.
- Another company has a really good deal on homeowners or other products, but you still want to keep your current provider for auto.
- Rate factors such as your driving record, credit history, and age affect your ability to get a discount.
Bundling your policies can be a great way to save extra on your rates. But be sure that you are maximizing your savings, either through bundling or by using separate companies for each policy.
Frequently Asked Questions
Q: Can you bundle health insurance with auto?
A: No, you can’t bundle health with auto. This is a common misconception about bundling policies. Pet and health usually can’t be bundled with other policies. Typically, you’re allowed to bundle auto with:
Remember that companies don’t always offer the same coverage types. Or they do offer them, but not as a package deal. Be sure to check with your insurer about what specific bundles they offer.
Q: Is it always cheaper to bundle car and homeowners?
A: No, it’s not always cheaper to bundle auto and homeowners. What you should do here really depends on how much you can save. Companies don’t always offer the same discount. American Family can save their customers up to 23%, while Progressive averages savings of around 5%. You’ll want to check your rates for each company to find out what you’ll need to pay. This is the surefire solution to know if bundling is right for you.
Q: Can I buy auto insurance and then bundle it with home later?
A: You can always add on a new product later. If you just bought a house and need to cover it with homeowners, you might want to add it with the same company that carries your auto policy. Insurers make it easy to do so.