How Does Homeowners Insurance Bundling Work 2023
If you bundle your homeowners insurance with insurance for your car, boat, or something else, you could save hundreds of dollars a year compared to buying each policy separately. In our study, most insurance companies said that customers who bought more than one type of policy could save between 10% and 25%.
If you have more than one car or combine insurance policies for your RV, boat, or life, you could save even more. The more policies you bundle together, the more money you could save.
Another benefit of bundling is that sticking with one company can make it easier to pay bills and keep track of information. This is because you only have to deal with one insurer and one agent. You could save even more if a storm or other event damages both your home and your boat, which are covered by different policies. In this case, some companies might only charge you one deductible, which would let you get more of your money back.
But bundling insurance doesn’t mean you’ll save money every time. The only way to know if your insurance costs will go down is to get quotes from several different companies. There are many things that affect your rates, such as where you live, how often you file claims, how good your credit is, and more. Not everyone who bundles their policies will save money.
Amy Bach of the consumer advocacy group United Policyholders says that insurance companies that only sell auto insurance may have lower rates than companies that sell many different types of policies. Bach says that a company that only sells auto insurance may offer perks that you can’t get from a bundle from another insurer, such as not paying for tickets or getting a discount for not making claims.
“Even if a company says it will give you a discount if you buy home and car insurance from them together, you might still be able to get cheaper car insurance if you don’t bundle,” says Bach. “But you’ll have to do a little shopping around.”
Use the estimate tools on most insurance company websites to see if you could save money by combining your home insurance with auto insurance or another policy. You can get a quick cost estimate by giving some basic information about yourself, your car, your home, and anything else you might want to bundle. Try this on a few different sites to see how the prices compare.
If the results look good, talk to an agent or someone from the company to find out more. On the websites of most insurance companies, you can set up a call with an agent. Take your time, think carefully about the choices you have, and don’t be afraid to ask questions that go into more depth.
Also, keep in mind that price shouldn’t be the only thing you think about. Choose a company and an agent you feel comfortable with: one with a good reputation for quality and service and the coverage you need.
Is there anything bad about getting homeowners insurance all at once?
Even though bundling your homeowners insurance with your auto insurance or another policy will probably save you money compared to buying different coverage from different companies, it is not a guarantee that you will save money. Bundling may not be the best choice for you, depending on where you live, how many claims you’ve made in the past, and other things like your credit history and the type of coverage you have.
If you only need auto insurance, you might get better rates from an insurance company that only sells auto insurance than from one that also sells homeowners insurance. A separate auto policy might also include benefits like accident or ticket forgiveness that you can’t get with a package policy.
It’s important to carefully consider your options and look at the details of any bundle you’re thinking about buying. Make sure you know what you’ll be getting and how much it will cost before you choose a policy. An independent insurance agent can help you understand the small print in policies and compare different companies.
There’s a lot more to learn about homeowners insurance, like how it works, what it covers, how to file a claim, and how to bundle it with auto insurance to save money on both. See the guides below for more information on these topics.
Then, we evaluate homeowners insurance products without bias. Our goal is to give people the knowledge and tools they need to make smart choices.
What does insurance for a home cover?
Homeowners insurance protects your property in case something bad happens that you can’t plan for. A homeowners policy will pay to fix or rebuild your home or outbuildings, like a garage, if something bad or even catastrophic happens to them, like theft, vandalism, storm damage, water damage, or fire. Your policy will also cover things like clothes and furniture that you keep in your home or on your property.