Bundling multiple insurance policies together is known as one of the easiest ways to get a discount, especially when it comes to homeowners insurance and auto insurance. Many insurers have robust savings plans in place designed to get you a better deal when you bundle home and auto insurance. But is bundling always better? If you’re not sure whether you should purchase your plans separately or look for a bulk deal, find the right option by exploring this guide.
Exploring the Appeal of Maximizing Savings Through Bundling
Many insurers advertise policy bundles as a great way to save money. Because so many people need both homeowners and car policies, insurers often have special deals for this unique combination. The exact discount can vary depending on your carrier, the plans you choose, and other factors, but you can typically save a significant percentage of both your home and your auto plan.
The idea is that carriers want your business for all of your insurance needs, so if you purchase multiple plans together, they can reward you with lower premiums. Think of it like buying in bulk — the more you purchase, the more you can save. If you’re looking to save money on car insurance, getting a bundle deal is an appealing option. Even if you have other ways to save, the extra percent off your premium can make a big difference.
The Financial Perks of Bundling Home and Auto Policies
Does bundling home and car insurance save you money? The answer is usually yes! Not all carriers provide multi-policy discounts for all situations, but they are extremely common. If you choose an insurer that offers a deal when you bundle homeowners and car insurance, you’ll be able to get a percentage off your total premium costs. There are several ways that your package deal can make things a bit easier on your wallet.
The Initial Bundle Discount
When you combine policies, you’ll get a lower price for both your home and your auto coverage. The specific percentage depends on the carrier you choose, but many insurers will offer you 5% to 10% off.
For example, imagine that an insurer charges $150 per month for your car plan and $200 for your homeowners plan when purchased separately. If you decide to buy both plans through a bundle with 10% off, you could get $15 per month off your auto policy and $20 off your homeowners policy each month. Instead of paying $350 toward your coverage each month, you’d only pay $325. Over the six-month term of your policy, you’d save an impressive $210.
That 10% decrease can be even more significant if you have higher coverage costs. Bundling can be helpful for anyone, but if you have higher-than-average premiums due to your driving history, the value of your home, or other risk factors, you can rack up serious savings.
Multi-Vehicle Deals
When you think of a home and auto combo, you probably imagine a package that includes one homeowners and one automotive policy. However, if you have multiple vehicles — or multiple houses — you’ll be able to apply your discount to each of them. For example, if your carrier offers 10% off, that price will usually apply to any cars you add to your plan. So, if you have multiple vehicles, you’ll be able to get a better deal on all the coverage you need.
This can also apply to family plans, so your whole family can benefit from lower prices.
Long-Term Savings
In most cases, bundle discounts don’t expire. That means you’ll be able to keep saving as long as you maintain your coverage with the same insurer. Over time, you could save thousands of dollars by bundling your plans together. Bundle discounts have been a longstanding aspect of the insurance industry, and they’re one of the most reliable ways to save money on your coverage. If you buy a new vehicle or move into a new house, you’ll likely be able to get similar savings for your new situation.
The Convenience Factor Behind Multi-Policy Coverage
Along with the financial perks, multi-policy discounts come with another major benefit — convenience. When you get both your homeowners and car coverage through the same carrier, you can manage your policies in one convenient place. You’ll be able to consolidate and streamline your payments with ease. If you ever move or have a life change that impacts your coverage, you’ll be able to handle the updates in one fell swoop instead of calling multiple companies.
How To Assess Whether Bundling Is Right for You
Bundling insurance saves money in most situations, but there are rare situations where it might be better to purchase your policies separately. If you’re wondering, “Should I bundle home and auto insurance?” it’s important to carefully research policy prices and discount options for your unique situation. To determine if bundling will save you money, consider your needs and do some basic research.
Consider Your Insurance Needs
First, determine which type of policies you need. People love bundles because it saves them money on the plans they already use. You’ll want to explore bundle programs that apply to your unique situation. For example, there might be different discounts for combining your car policy with a renters plan compared to a homeowners plan. Once you have a good idea of what coverage fits your lifestyle, you can start comparing individual policies and bundle packages.
If you need specialty coverage, such as an SR-22 policy, you might want to get your plan from a specific insurer that focuses on those types of plans. In that case, they might not offer homeowners policies, which means you wouldn’t be able to combine your coverages.
Review Policy Details
Sometimes, there are restrictions on what kinds of policies you can combine in a bundle. If you need a specialty plan or a certain type of extended coverage, bundling might not make sense. Ask your insurer if there’s any difference between your package deal coverage and individual plans, then decide based on their answer.
Explore Other Discounts
In most situations, bundle discounts will actually stack with other auto insurance discounts. If you qualify for other types of car insurance discounts, such as a senior or student discount, you’ll likely be able to get extra savings on top of your lower bundled rate. However, not all carriers will allow you to use multiple discounts. Ask and see if you can save more through other programs or if bundling is your best bet.
Compare Carriers
In rare cases, you might find lower premiums with separate carriers who don’t offer bundle deals. It’s important to regularly shop around to find the most affordable option for you. Compare individual and package policies with your current insurer and other providers to ensure you’re getting the lowest possible monthly premiums.
Are There Any Disadvantages to Bundling Home and Auto Insurance?
Typically, there aren’t any downsides to getting a package deal on your insurance, as long as your insurer offers the coverages you need for both home and auto. Sometimes, however, having multiple policies with the same carrier might discourage you from shopping around in the future. Although switching carriers can be tedious when you have several policies set up, remember that regularly comparing prices is critical for keeping costs low.
Start Saving with a Multi-Policy from Freeway Insurance
For most people, bundling homeowners and car insurance is a no-brainer. Bundles will save you money and time while also getting you the protection you need for your most valuable assets. When exploring coverage, you can confirm that a bundle deal is right for you by reviewing prices and discount programs for both individual and multi-policy options.
At Freeway, you can find impressive bundle discounts to keep your premiums low for both your auto and homeowners policies. You can trust Freeway to protect every aspect of your life at the lowest price possible. To set up your bundle, call (800) 777-5620, visit a Freeway office near you, or get a free quote online.
