Most people by now have heard of “bundling,” which simply means combining more than one product or service together for a lower rate on everything. It’s common in the cable, Internet and phone industries, and is becoming increasingly popular for insurance. But is bundling auto and home insurance a good idea?
PRO: Easier Billing
One of the main benefits of bundling auto and home insurance is that it puts both types of coverage under one policy. You have fewer bills to juggle and are therefore more likely to pay on time. If you sign up for automatic billing so that your premium is automatically deducted from your checking account or credit card, it becomes even easier.
CON: Difficult to Choose
If you already have auto and home insurance with different companies, you’ll have to drop one for bundling to work. This is a difficult decision and requires serious research if you want the lowest possible rate. Your best bet is to research several different companies to find out which has the best deal.
PRO: Lower Rates
Bundling auto and home insurance usually results in a discount. When I bundled insurance for my car and home, I wound up saving about 14 percent, though your savings might be larger or smaller. It depends on the level of coverage you purchase, the deductibles you choose and the provider you insure with.
Package insurance is still in its infancy and not all insurance companies offer it. If you are bundling auto and home insurance, you might have to switch providers entirely, which can be a bit of a hassle. However, when you consider how much you can save over the coming years it becomes less frustrating.
PRO: Relationship with Your Agent
When bundling home and auto insurance, you get to work with one agent for all your insurance needs. This means that you know him or her better, and he or she knows your property better. This is infinitely valuable when it comes to filing a claim or making adjustments to your policy.
CON: Other Discounts
You might not be able to take advantage of other discounts when bundling your auto and home insurance. This is not the case for every company, but you’ll need to find out if you can still benefit from your updated appliances or good driving record.
You might have to shop around when bundling auto and home insurance, but it shouldn’t take more than a couple of days to find an appropriate provider and set up your policies. If you decide that it isn’t worth the hassle, or that it won’t constitute sufficient savings, you can take advantage of other discounts on home and auto insurance.