Auto and Home Insurance Bundle: Save on Your Policies

Auto-home insurance bundling refer to purchasing car and home insurance from the same company in the US. Most major insurers like State Farm, Allstate and GEICO have bundle deals that tend to reduce your monthly bills.

Bundling can make bill paying and claims easier, as all of your accounts stay in one place. Certain plans come with bonuses or additional coverage.

To consider whether bundling is right for you, find out what each company in your area offers and compare the savings.

What is Insurance Bundling?

If you buy more than one type of insurance from the same company, it’s called bundling. The most typical example is purchasing auto and home insurance from a single provider. That way, you keep your coverage in one place, and can make life a little bit easier.

In America, this method is fairly common, particularly in LA, where a lot of people have cars and homes. Local insurers like to promote bundle deals to capture customers who want to keep it simple.

When you bundle, you typically receive a discount. Most companies offer some discount if you carry both auto and home policies with them. Savings range from 5% to 20% off your premiums, depending on the company and your risk profile.

For instance, if your annual auto policy is $1,000 and your home policy is $1,200, then a 10% bundle discount could save you $220 annually. For a lot of us, that adds up — particularly with all the crazy expenses of life in a major metropolitan area.

It’s easier to manage your policies as well. Instead of working with separate companies and piles of paperwork, you’ve got one agent or customer service line for inquiries or claims. This can really be a difference maker if you ever have to file a claim, since you only need to deal with one company.

If a fire damages your house and car, you may even pay only one deductible instead of two, depending on your provider’s policies. That can be peace of mind and a money saver when the wheels come off.

Bundling makes billing easier. You receive one bill a month for all your bundled policies, so you avoid the risk of missing a payment or forgetting a renewal date. This arrangement can be a blessing for active individuals who don’t wish to follow multiple due dates.

Still, bundling isn’t always the most inexpensive choice. At times, you can actually save more by shopping each policy separately. One company is better rate-wise for cars, another for homes.

Bundling can tie you into a bargain on paper that isn’t really the best option if you shop around. It’s wise to shop around with a couple of companies before you make a decision.

The Real Benefits of Bundling

Bundling auto and home insurance provides a smart way to save money, eliminate hassle and extract more from your insurer. Although some of these advantages are obvious, others fly under the radar but nevertheless create a world of difference for many American policyholders.

1. Direct Savings

A lot of folks notice savings immediately upon bundling. Insurers in the U.S. Have been offering discounts of 10% to 25% for bundling auto and home policies. For instance, some national providers, such as State Farm and Allstate, promote savings up to 17-20% for bundles.

These savings can amount to hundreds of dollars annually, particularly for those with more valuable items. Not all discounts, however, are created equal. The ultimate rate depends on factors such as your location, driving history, and property value.

Bundling can translate into lower premiums than if you were to purchase separate policies. Carriers view bundled customers as less risk, so they reward loyalty with better rates or added benefits, such as accident forgiveness or complimentary roadside assistance.

All the same, it’s wise to shop bundled rates against standalone offers to confirm the savings are genuine.

2. Simplified Life

Handling insurance is far simpler with a single provider. Instead of managing contacts from two or more companies, you have a single point of contact—one agent who understands your requirements.

Paperwork drops as well, since renewals, claims and policy changes all flow through a single conduit. That’s less time spent tracking bills or digging up documents.

When it’s time to update your policy or file a claim, you have one place to go — one set of forms, one customer service team. All together in one convenient location. Your car, home and sometimes even renters or umbrella insurance, all sit on the same account, making it easier to keep track and stay organized.

3. Stronger Relationship

Deep, long-term relationships with a single insurer can establish trust and personalize service. Agents get to know your home, car, and life changes, and can provide personalized advice.

In the long run, loyalty can get you better service, speedier assistance and occasionally additional discounts. Others provide benefits to loyal bundle customers, such as rate locks or additional coverage for valuables.

If your needs shift — say you purchase a second home, or add a teen driver — your agent can assist in fine-tuning your coverage more seamlessly.

4. Coverage Security

Bundling can provide more peace of mind. One provider establishes coverage limits and terms, so there’s less room for gaps or overlap.

Reviewing all your policies once a year, together, ensures home, auto and extras, like liability, work as a team. If a storm hits both your house and car, for example, filing a claim is often quicker because you’re only dealing with one company.

Gap-free coverage = less surprises should you ever need to file.

5. Single Deductible

Other insurers provide a single deductible for bundle customers. That is, if something happens–a fire or storm–to both your car and home, you pay one out-of-pocket cost, not two.

This can save a ton in emergency, especially when deductibles for home and auto are both $500–$1,000. Not all companies have this, so it’s clever to inquire before you join.

When to Bundle Insurance

I mean, who doesn’t love a simpler life and a little saved cash? Bundling your auto and home insurance can do just that! It works by bundling both policies with one insurer, giving you one account and occasionally only one deductible if something happens to both your home and your car.

This can reduce hassle when handling claims, payments or adjustments to your policies. Just one login, or one agent to call, keeps things simple.

Key life moments that might prompt a review or bundling include:

• Buying a new home or car
• Getting married or moving in with a partner
• Starting a family
• Downsizing or relocating to a new city
• Retiring or shifting to a different lifestyle
• Paying off a mortgage or car loan

Buying a house or new car is a great time to check out bundling. Because they’re both big investments, you want to guard them as much as possible. Insurers like to provide discounts if you bring multiple policies under their umbrella.

Say you purchase a new home in Los Angeles and already insure a car, your provider may present a bundle that reduces your total premium by 10% or greater. Some firms simplify matters by charging just one deductible when, for example, a tree falls down during a storm and damages both your garage and your parked vehicle.

Bundling can help if you’re looking to clean up your finances. Instead of multiple bills and due dates, you can have one account, one app, or automatic payments. It keeps you on top of things and prevents late fees or missed payments.

With one insurer, you have one voice to call with questions and claims, which is a huge time-saver and prevents confusion.

Even if you already bundle, it justifies reviewing your insurance annually. Get quotes from other companies so you know if you’re still getting a good deal. Insurers adjust their rates or introduce new discounts all the time, and loyalty doesn’t necessarily equal the biggest savings.

Some firms require all your policies to start on the same day, while others allow you to add one at a time. Understanding your insurer’s processes helps you schedule your switch effectively.

Keep in mind that with all policies under one roof, it’s more difficult to switch down the road. If you want to switch only your auto or home insurance, you may have to bust the bundle, which could involve losing discounts or additional paperwork.

How to Bundle Policies

If you bundle auto and home insurance, this means you’re buying both of them from the same company. It’s a smart way to save on premiums and keep it simple. Virtually all the major providers in the U.S.—think State Farm, Allstate, Farmers—give you discounts when you bundle.

It can be simple, but a couple of steps will provide you the maximum benefit.

1. Take a look at your coverage. Begin by identifying what you’d like to insure. For instance, if you have a car and a home in LA, you’d want auto and homeowners insurance. Some tack on renters or condo insurance. Look at your risks and what counts — perhaps you want more liability or coverage for valuables.

2. Shop quotes around. Collect quotes from multiple providers. Request a bundled rate from each company, not just individual auto and home rates. This lets you view the actual savings. Others provide as much as 20% off, but discounts can vary by state, coverage or your claims history.

For example, a Californian with a million-dollar home and two vehicles could experience greater savings than someone with a cheap rental and a low-end car.

3. Speak with an Agent. Talk to an agent — on the phone, in person, or online. Be honest about your needs and ask direct questions regarding coverage. An agent can inform you of what’s covered, what is additional and whether you receive benefits such as roadside assistance or additional liability coverage.

They can describe whether you have to bundle to obtain the best price. Others won’t discount unless you bundle, so inquire.

4. Read the Fine Print. Check the details of your bundled policy. Review the deductibles, limits and exclusions. Occasionally, the bundled policy may have holes or a higher deductible.

Find out if your insurer applies one deductible across both policies in the event of a claim – or if you’re paying two. Check to see if the bundled one is better than two individual policies – because it’s not always cheapest or best suit for everybody.

5. Handle Your Policies 🙂 Bundling usually means you get one bill and can log into one online account. This simplifies following payments, updating info, or submitting claims.

If you have to file for your car and home after a storm, one insurer can take care of it all. They do have perks such as accident forgiveness or loyalty benefits for bundlers.

Potential Downsides

Bundling auto and home insurance is frequently touted as a savvy method to save money and reduce paperwork. It’s not necessarily the right fit for all. Others may feel that the negatives override the benefits. Here are some real downsides to keep in mind:

• Less flexibility in selecting individual coverage or features for each policy
• More difficult to shop around for better deals as everything’s with one company.
• Potential loss of discounts if you cancel one piece of the bundle.
• May not receive specialty coverage you need for either car or home.
• All deductibles and claims with a single insurer, which can be restrictive.
• Switching providers later can feel like a chore
• Lower price competition between insurance companies
• May miss out on superior offers as your needs evolve

If you bundle, you typically have to select coverage from a single insurance company’s menu. Which can translate into less choices. For instance, maybe you want a certain add-on for your auto policy but your provider won’t offer it if you bundle.

Or perhaps you require a special home insurance rider, such as coverage for a home office, that’s not included in the bundle. A lot of the specialty coverages are just sold as stand-alone plans. This is an actual obstacle if you have demands beyond the basics.

Bundling can also reduce the incentive to shop around. When you have your home and car insurance with the same company, it’s harder to not just renew every year, even if rates increase. That implies you could overlook better prices or more coverage from other firms.

Switching can feel like a hassle if you’re moving multiple policies. This can trap you for more time than intended.

There’s the danger of forfeiting discounts. If you drop one piece of your bundle — say you sell your car and drop your auto policy — your home discount might vanish as well. That might cause you to be charged more than you anticipated.

Something else to watch—if you make a claim, you might be stuck with filing all of your claims and deductibles with the same provider. Though this streamlines in many senses, it can be restrictive. If you didn’t bundle you’d be dealing with two companies, each with their own deductible. Sometimes that’s best for YOU.

Finally, bundling can translate into less competition. Businesses might not work as hard to earn your business on price if they know you’re wrapped up. You might lose out on new offers or lower prices that arise elsewhere.

The Loyalty Trap

Bundling your auto and home insurance with one company can appear to be a smart move. It’s easy to deal with, and the allure of a bargain is difficult to resist. Quite a few insurance companies in the U.S. Do their best to make it as easy as possible to bundle policies, banking on your loyalty.

Here’s the catch. The ‘loyalty trap’ is when ease and benefits hold you captive to a single provider, even though superior offers may exist. Loyalty, it turns out, can be the enemy. Clinging to the same insurer year after year may provide a sense of security, but it both encourages resistance to change and limits your choices.

Certain businesses have nice introductory promotions for new customers that longtime patrons simply don’t receive. In the long run, you could end up spending more than necessary. The hassle of switching—filling out new forms, moving automatic payments, or losing a familiar agent—makes staying put feel like the right move, even if it’s not the best for your wallet.

Examples of how loyalty limits savings:

• Insurers typically increase rates post-year one, assuming customers won’t comparison shop.
• Bundled discounts occasionally wither, or new offers arise just for new registrations.
• A few companies even have better perks for split policies, like accident forgiveness on auto or special add-ons for home, but only if you inquire or shop around.
• Hanging on with the same provider for the hell of it could mean you’re missing some cool new product or innovation that other companies are first to introduce.

Bundled customers are low-risk. That could translate to reduced premiums, or additional benefits such as a dedicated point of contact or simplified claims. That isn’t always sufficient to compensate for higher rates. For some, unbundling—having your auto and home policies with different companies—can save even more, especially if your home or car situation shifts.

For instance, if you purchase a new car or change ZIP codes, another insurer may provide you a more favorable offer. Checking your options every year or two is prudent. The insurance market evolves rapidly. New offers and perks and discounts come up all the time.

Comparing quotes from three or more companies — including ones you’ve never even tried — can help you identify huge savings. Don’t let fear of paperwork or losing a tiny loyalty perk trap you.

It’s hard to believe, but loyalty doesn’t always pay. Every circumstance is unique. Your requirements, your house, your vehicle and your risk profile might all vary. Consider carefully the benefits and disadvantages of remaining bundled or unbundling your policies.

The secret is to be educated and not just settle for the same old offer.

Conclusion

Bundling your auto and home insurance together keeps it simple and can save real money for Americans. Most folks like one bill and one agent and discounts can add up. Not all bundles are created equal, so it pays to shop and read the fine print. Some people get better deals, others discover a single policy suits them best. Local agents in LA or Dallas know what deals work for your area. To suss out what’s best, ask questions and get quotes from some companies. Lock in perks that fit your life, not just what’s available. Ready to take a peek at your bundle! Begin with what you need and find what fits your home and your wheels.

Frequently Asked Questions

What does it mean to bundle auto and home insurance?

Bundling refers to purchasing auto and home insurance from the same carrier. You control both policies within a single account – often saving money and easing the billing process.

How much can I save by bundling auto and home insurance?

Most insurance companies in the U.S. Will give you a 10% to 25% discount when you bundle your auto and home policies.

Is bundling always the cheapest option?

Not necessarily. Occasionally, individual policies from different companies will be more inexpensive. It’s savvy to shop quotes first.

Can I bundle renters and auto insurance instead of home and auto?

Yes. Most insurers allow you to bundle renters and auto insurance, and you can still get similar discounts.

What should I watch out for when bundling insurance?

Watch out for coverage gaps, or escalating premiums as you age, or losing discounts if you file a claim or relocate. As always, check your policy.

Will bundling my insurance make it easier to file a claim?

Yes. If you have both policies with one insurer, it tends to simplify claims and service.

Can I switch insurance companies if I’ve bundled my policies?

Yep, you can change companies. Simply ensure your new provider has the coverage and discounts you require before you ditch your old plans.