You may have heard of the benefits that come with bundling home and auto insurance and thought to yourself – is it really that good? The answer is yes and no.
There are both pros and cons to bundling your insurance policies under the same company, and ultimately, it depends on your unique insurance needs.
Here are some important things to consider when shopping for a home and auto bundle insurance policy:
Here are some of the pros to bundling your insurance:
- Multi-policy discount: This is probably the biggest reason people are interested in bundling their home and auto policies. Insurers offer discounts anywhere from 10% to 25% for customers who decide to bundle. This percentage provides bigger savings on more expensive policies, which means bundling is best for people who have expensive home insurance and cheap car insurance.
- Simplicity: Having a single company manage your policies means less hassle for you. There will be only one agent you need to contact, only one app you need to download, and only one website password you need to remember.
- Potential of a single deductible: Should something bad happen to both your car and home at the same time, such as a natural disaster, it is possible you will only need to pay one deductible for both claims. Be sure to speak with your agent to see if your insurer has this policy before you make a final decision.
- Being more valuable to your insurance company: Using the same company for both home and auto insurance makes you a more valuable customer to them. This means they will provide improved service and potentially lower rates to keep your business. It may also offer insurance security, meaning your insurer is less likely to drop you if you have too many claims.
Bundling your home and auto policies isn’t always the best option, however. Here are some cons to making this choice:
- May not actually be cheaper: It is important to shop around and compare quotes from different insurers before letting the multi-policy discount charm you into bundling. You may find separate policies which are actually cheaper in total than a bundle. This is especially true for people with many tickets or poor credit, as they may have car insurance policies that are actually more expensive than their home insurance.
- May not actually be simpler: Another thing to look out for is the possibility of a third-party insurance company known as an affiliate. The company will still offer you a discount, but you will have to work through a different company for one of your policies, the same as if you hadn’t bundled at all. Ask the insurer if either policy goes through an affiliate company.
- Harder to leave: Bundling your home and auto insurance in one company is a little like putting all your eggs in one basket. If you find yourself unsatisfied with the service or price increases of one policy, you may feel trapped by the amount of work it would take to find both new home and auto policies.
Bundling your home and auto insurance is one of the quickest and easiest ways to save money on both policies.
But it is important to consider the hidden downsides which may negate the savings you are looking for. It is a good idea to compare quotes, both bundled and separate, before making a decision.
Asking your insurer about third-party affiliates or single deductible bundles can also save you time and money.
Home & Auto Insurance in MD, WV, PA & VA
At Antietam Insurance, our team of experienced professionals works hard to get you the best price on your home and auto insurance, regardless of whether or not you bundle. Contact us today for a quote!