While insurance providers provide what can be described as essential services, they are a business like any other with the goal of gaining a huge customer base. If there is one thing that businesses alike, it’s loyal customers.
Of course, the best businesses know that customer loyalty isn’t so easily earned. It takes dedication and quality service, but some incentives also help. Bundled insurance discounts are one of these bonuses.
The most common types of insurance that people often get from the same insurer are car and homeowners’ insurance. Your vehicle and your home are the most important parts of your life, after all.
The discount you’d receive on your rates may be worth it to take the deal, but having one insurer for multiple insurances offers more benefits than just the discount.
There is also a matter of deciding if it is right for you.
Why Bundling Car And Homeowners’ Insurance is Great
How much you will save exactly depends on the insurance company you bundle your home and auto coverage with.
There are reports of some policyholders saving up to 25% on insurance rates –that’s a whole quarter of what they pay on an annual basis.
A natural benefit to having bundled insurance with one provider is that they are easier to manage because you only have to report to one provider.
This also makes any claims easy to process and more secure while doing so.
When You Would Bundle Car And Homeowners’ Insurance
The discount itself is usually applied to your homeowners’ insurance rates because it costs more than car insurance.
For that reason, the bundle is best for those who pay much more for car insurance than they do for homeowners’ insurance. Finding cheap car insurance is actually not much of a challenge if you have a good driving record and claims history.
You shouldn’t really bundle homeowners’ and car insurance if your auto insurance is expensive. You should also be aware of how any given insurer prices their policies as you want the discount to be worth it. There are some reports of insurance companies cutting the bundling discount to auto insurance rather than homeowners’.
Again, compare and contrast all the insurance providers you are considering to see what kind of bundling bonuses they offer.
Renters’ Insurance Can be Bundled With Car Insurance Too
If you don’t own your living space but rather rent it, it can also be bundled with car insurance similar to homeowners’.
More good news is that the same type of discount still applies. There are even instances where policyholders bundle their life and car insurance for similar discounts.
When Bundling Car And Homeowners’ Insurance Isn’t Best
High-risk drivers with above-average rates shouldn’t invest the effort in trying to bundle insurance as the discount will not be worth it until they improve their premiums.
Companies that specialize in high-risk insurance shouldn’t be used to bundle coverages as you will have two above-average policies to pay for on a yearly basis.
A good rule of thumb is that if your homeowners’ insurance is more expensive than usual simply because of the house, you can reduce the cost by bundling it with car insurance.