If you’re like most of us, you’ve been looking for innovative ways to reduce your expenses. Usually, this means making sacrifices, but not always. With one simple trick, Americans save an average of 16.1% every month.
What is the trick?
They bundle home and car insurance with the same company to get a better deal. Learning to do so yourself could potentially save you thousands of dollars over your lifetime. If you’re living paycheck to paycheck, that can make a significant difference.
Would you like to know how to apply this trick in your life?
If yes, then read on. In this post, we’ll look at how to save by bundling auto and home insurance.
Bundling is simply taking various insurance products from one company. Instead of insuring your home through one business and your car through another, you put them under one firm.
How does bundling insurance save money?
Bundling car and home insurance usually comes with a discount on one or both policies. Insurers put a bundling discount in place to reward clients for having all their products with one firm.
Bundles may extend to other products within the same firm, such as:
The company can offer a better deal because each policy locks you in a little. You might be willing to change your auto insurance quickly, but it’s inconvenient to look for two or three new policies.
How much does bundling insurance save you? The answer is more complex than you might think. The multi-policy savings depend on the company, your credit record, and how well you drive.
Someone with a stellar credit history and a spotless driving record can gain the most. Those on the opposite end of the spectrum might find that bundling increases their premiums.
Before you decide to bundle home and car insurance, let’s look at the pros and cons.
Where will you find the best homeowners and car insurance bundle? That depends on what you’re looking for in your plan. We scoured home and auto insurance bundle reviews to identify the top companies offering this product.
We obtained homeowners and auto insurance bundle quotes to see which provides the best deal. We took quotes for a person with a reasonably good credit rating and clean driving history to obtain our estimates. The results are in the table below.
|Company||Average Home Insurance Cost Per Month||Average Auto Insurance Cost Per Month||Discounts for Bundling||Average Premium for Both with Separate Policies||Average Premium When You Combine Policies||Amount You Can Save per Month|
|Allstate||$140||$198||Up to 25% of home and 10% off auto||$338||$283||$55|
|American Family||$100||$115||Up to 20% off home and 29% off auto||$215||$161.65||$53.35|
|State Farm||$133||$124||Up to 17% overall||$257||$213.30||$43.69|
|Progressive||$150||$130||Up to 12% overall||$280||$246.40||$33.60|
The average American paid $1,430 in auto insurance in 2018. Had they taken advantage of the savings we’ve detailed above, they could have saved between $171 and $414.70 for the year.
Many companies are willing to provide multi-policy discounts to retain your business. The more business you conduct with the firm, and the more coverage you have, the more valuable you are to the firm.
Products like renters insurance, which are already inexpensive to begin with, won’t benefit much from these deals. Bundling auto and home insurance here won’t reduce your home premium significantly. Your auto insurance, however, should drop nicely.
Nine times out of ten, it will be. If you’re paying a lot for your home insurance and less for your vehicle, you’ll benefit the most.
There are cases when auto coverage becomes the more expensive policy, for instance, if you have accidents or tickets, poor credit, or live in a state with high car insurance rates. In this case, the savings from choosing the cheapest car insurance company could dwarf a 20% discount on a bundled home policy.
Combining your policies is convenient and may save you money. It’s worth investigating your options. You should bundle when you have a reasonably good credit history and a decent driving record. Get quotes from several companies and see whether it’s worth switching your insurance.
You shouldn’t combine your coverage if:
If you have bad credit, traffic violations, or reside in a state where insurance rates are high, it may work out better to have separate policies. To be sure, shop around – ask for bundled rates and standalone policies.
Yes, you can bundle the two. Whether it’s a wise idea depends on your credit rating and driving record.
The average person saves 16.1% overall. That equates to $16 per $100 premium that you pay. It doesn’t sound like much in one month, but it adds up. Over a 10-year term, you’ll save $1,920 without reducing your coverage.
American Family provides outstanding value for money along with a sizeable discount of up to 29%. As always, it pays to do a little more research on your own before settling for one plan or the other.
Policy Advice is a website devoted to helping everyday people make, save, and grow money. While our team is comprised of personal finance pros with various areas of expertise, nothing can replace professional financial, tax, or legal advice.
Policy Advice is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.Policy Advice is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com
Stay In Touch
© Copyright 2022 PolicyAdvice.net. All rights reserved.