Should you bundle auto and home insurance? | Global News Avenue

Auto and homeowners insurance rates have soared this year. In terms of motor vehicle insurance alone, we have seen Average premium increased by 12.7% According to the November Consumer Price Index released by the U.S. Bureau of Labor Statistics, 2023-2024. Many companies recommend bundling — meaning you buy your home and auto policies together from one provider — to save money.

While the promise of discounts through bundling may sound appealing, this route isn’t always worth it. We talked to insurance professionals to help you determine when bundling makes sense. They share insights on discounts, coverage options, and what to consider before bundling your policies.

Find out how affordable the right insurance policy can be here.

Should you bundle your car and home insurance together?

Experts agree that bundling home and car insurance together able Provide valuable benefits.

“Discounts vary from company to company, but you can easily see savings of 10 percent or more per policy,” said Mike Barrett, co-principal of Barrett Insurance Agency. In addition to saving money , bundling also simplifies your insurance management by having one point of contact for all your needs.

Rajni Kapur, CEO of All Solutions Insurance, pointed out that insurance companies generally consider bundling customers to be less risky. This may result in attractive interest rates and terms. However, Michael Orefice, senior vice president of operations at SmartFinancial, reminds us that “in some cases, you may save more by choosing a different insurance company.”

Below, we’ll explore what bundling means and whether it’s a smart choice for your situation.

Learn more about the best coverage options available to you.

What insurance bundling really means

Insurance bundling means combining multiple policies (usually home and car insurance) with the same provider. Most insurance companies offer Discounts range from 10% to 25% When you bundle, it depends on your state and the type of coverage you choose. Kapur noted that bundle discounts have remained stable even as base premiums for homes and cars have increased.

When you bundle, you will need to keep track of one bill and have one insurance company handle your coverage needs.

“Having a committed customer service representative means you don’t have to call a 1-800 number to get quality service,” Orefice said. Your agent will be your ally in conducting annual reviews and making sure you have solid coverage.

But remember, bundling also means both policies are tied to one company. If you are not satisfied with the service or find a better price elsewhere, you will need to replace Both policies to make changes.

When does it make sense to bundle car and home insurance?

Bundling coverage makes the most sense when you want simple, comprehensive coverage. If a storm damages your home and Cars, you only need to work with one agent and file a claim. This streamlined process can save you time and stress in an already difficult situation.

Many insurance companies treat bundled customers as priority customers.

“(You can) enjoy loyalty benefits such as reduced costs and (enhanced coverage options),” Kapur said.

Ultimately, placing all of your policies with one provider means building a long-term partnership with an agent who understands your unique needs. If they find a gap in your coverage, they can recommend additional protection, such as an umbrella policy. This personalized attention helps ensure you get the right coverage at the best price.

When bundling car and home insurance may not make sense

Sometimes it makes more financial sense to separate your policies.

“If you have any marks on your driving record or a DUI, you can save money by purchasing car insurance from a specialist provider (which offers reasonable rates for high-risk drivers),” Orefice said.

Additionally, certain homes and vehicles require specialized coverage that bundled policies cannot provide.

“If (you) own a high-value home or a home located in a high-risk area, such as a flood or wildfire area, (you may need) specialized (homeowner) insurance (with a carrier with competitive auto rates) Not available everywhere),” Kapoor said. This also applies to luxury, antique and collector cars.

Kapur stressed that even with a good driving record and standard insurance coverage, a separate policy Can Provide greater value. For example, she recently helped a family in a wildfire-prone area find more affordable coverage by splitting their policy. They purchased specialized home insurance for their location and also obtained a separate auto policy that offered better rates and accident forgiveness for their teen driver.

bottom line

Deciding whether to bundle insurance requires careful research. Barrett recommends casting a wide net. Start by comparing car quotes from several suppliers and ask about each supplier’s bundled discounts. Then do the same thing with your home insurance company. While this process takes time, it can save you hundreds of dollars each year.

After purchasing insurance, don’t forget it. Orefice recommends reviewing your coverage at least once a year. “If you see an increase in your insurance rates, it’s time to look around (and) see what others are offering,” he stressed.