We’ve all seen the commercials – bundle your home and auto insurance and save! – but is that always the best option to save on your insurance?
Are there advantages to bundling? Of course! Here a just a few:
Multi-policy discount – insurance companies offer discounts up to 25% for combining home and auto insurance.
Single deductible – some companies offer a single deductible option, so if your home and autos both suffer hail damage, you only pay the deductible on the home policy.
Underwriting flexibility – an insurance company may be less likely to cancel you for filing multiple claims on one policy knowing they may very well lose both policies if they do.
Convenience – having all your policies in one place, rather than your home with one company and your auto with another, especially if they are with different agents.
After reading those advantages, how could there possibly be a downside? Consider the following:
Aggregate cost – are you getting the best possible rate by bundling, or could it be less expensive having your auto with one company and your home with another?
Harder to switch – say the rate on one policy takes a big increase, and now if you want to change companies, you’ll have to shop both policies, since the rate on the other will increase once you lose the multi-policy discount.
Getting lazy – it’s easy to become complacent and continue renewing each year with the same company, assuming that their bundled rates are still competitive.
Knowing that there are pros and cons to bundling your home and auto insurance, make sure that you ask your agent what options are available to you so you can make an informed decision.
Want to compare 20+ carriers and see if bundling is right for you? Get a free quote here
