4 times when it’s right to bundle your home & car insurance

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Most carriers don’t sell strictly homeowners, or strictly auto insurance, and nothing else. So if you go to a company for a car insurance policy, there’s a good chance they’ll have an option to bundle it with a homeowners or renters insurance policy. And what better way to save money than by doing something that makes your life easier? While this all sounds idealistic, it still warrants comparison shopping to make sure you’re getting the best deal for your situation.

With that in mind, here are four reasons bundling your home and car insurance policies is a good option for you.

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1. Bundling saves money

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Combining your home and auto insurance under one carrier may lead to some serious discounts. Also referred to as a multi-policy discount and a companion discount, it saved consumers in the U.S. an average of 20% in 2017, according to Insurance.com. While the amount you save varies from state to state, in certain states, like Georgia, folks saved as much as 22% by combining auto and home policies, and 11 other states also averaged discounts greater than 20% if you stuck with the same company.

Bundling may also be the way to go if you’re looking for strategic savings. This strategy isn’t noticeable right off the bat, but it pays off during a specific event or extenuating circumstance, like a tree falling through your garage and crushing your car. Without bundling, you’d have to file separate claims for the same event, with separate insurers, and pay separate deductibles. By bundling those policies under one carrier, you may have to file just one claim for the same event and pay just a single deductible.

You can check out this guide to find out how much car insurance is required in your state.

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2. Bundling is convenient

Bundling makes managing policies easier, cuts down on paperwork, cuts down on the amount of time you’ll spend trying to remember login information and passwords, and reduces the inconvenience of having to communicate with multiple carriers about multiple policies.

It also reduces the time you’ll spend talking to an agent about changing or adding to existing homeowners or car insurance policies. If the agent already knows who you are and is aware of your assets and family situation, it’s going to be far more painless when you need to add additional coverage, apply discounts or add riders to a homeowners or car insurance policy.

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3. Unique product tiers

Carriers also offer unique product tiers, or more complex bundles, if you decide to combine all of your policies. If you have a car, home, rental property, boat and RV, its common for insurers to offer one policy package, because most auto and home insurers also specialize in other types of personal property. Unique product tiers can be advantageous as they cut out paperwork, limit you to one bill and you may only have to pay a single deductible for all of that coverage.

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4. You live in a high-risk home

As a general rule of thumb, carriers are less likely to drop you if you have multiple policies with them. So if you live in a “high-risk” home — near an extreme weather prone area, on a fault-line, crime-heavy areas, etc — it’s far easier to find coverage (and stay covered) with a company that offers bundles rather than a company that specializes in one type of insurance. Why are they willing to cover you, despite the risks? Because you’re a loyal customer. In their minds, refusing your home coverage may cause you to drop your existing auto policy and go with a different carrier altogether.

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How to bundle your auto & homeowners insurance policies

The option to bundle your auto and homeowners insurance policies is often available at the end of your insurance application. Your insurer will typically ask you if you’d like to add on to your existing policy with an auto or homeowners policy.

If you already have an auto or homeowners policy with a different company but want to switch to a single company to complete a bundle, be sure you’re following the proper procedure to ensure that you won’t have to pay cancellation fees or have lapses in coverage.

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It’s still important to compare your options

Bundling your insurance policies doesn’t necessarily mean saving on them, so compare what you’re currently paying for coverage versus what you might pay after combining plans.

At the end of the day, trust your instincts. Does it feel like the right move at this time, discounts notwithstanding? Knowing your limits, exploring your options and working with the right insurer are key to deciding if bundling insurance is the right move for you.

This article originally appeared on Policygenius and was syndicated by MediaFeed.org.

Image Credit: DepositPhotos.com.

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