Should You Bundle Your Home and Auto Insurance?

Bundling your homeowners and auto insurance can be a smart move if it saves you money and provides the coverage you need. It also simplifies managing your insurance payments.

While home and auto insurance offer peace of mind, high premiums can be financially stressful. Bundling these insurances can help you save money and make managing your policies easier.

What is Bundling?

Bundling means purchasing multiple insurance policies from the same company. Home and auto insurance are often bundled because this typically leads to significant savings. You can also bundle other types of insurance, like renters, condo, motorcycle, and boat insurance, to save more money.

Benefits of Bundling Your Home and Auto Insurance

May Lower Your Premiums – Most insurance companies offer discounts for multiple policies, known as multi-policy or multi-line discounts. For example, Progressive reports that new customers can save over 20% on average by bundling home and auto insurance. These savings can be redirected towards financial goals like building an emergency fund, saving for retirement, or planning a vacation.

Simplifies Account Management – Missing a payment can cause your coverage to lapse, leaving your home or car unprotected. Bundling your home and auto insurance with one company streamlines account management, reducing the likelihood of missed payments. You can manage everything through one account, one app, and set up automatic payments, which might earn you additional discounts. If you need to file a claim involving both your home and car, dealing with one insurer simplifies the process.

You Could Save on Deductibles – If an event damages both your home and car, like a tree branch falling on both, some insurance companies only charge one deductible if you have bundled policies. With separate insurers, you’d have to pay two deductibles.

Disadvantages of Bundling Your Home and Auto Insurance

You May Not Find the Plan You Need – If you have specialized insurance needs, one insurer may not offer the combination of home and auto coverage you want. For example, high-risk drivers or homeowners in wildfire zones might need specialized insurers that don’t offer bundled options.

Separate Policies Might Be Cheaper – While bundling typically reduces premiums, it doesn’t always offer the best savings. Discounts vary by location, carrier, and other factors. For instance, Allstate reports average savings of 25% for bundling, but customers in California save just 2% on average. Other discounts might be available for individual policies, like good grades for car insurance or installing security devices for home insurance. Switching providers could cost you existing loyalty discounts, so it’s essential to compare the total costs.

It May Keep You From Shopping Around – It’s wise to shop around for insurance annually to find better rates. However, having multiple policies with one insurer can make switching seem like a hassle, discouraging you from comparing prices. Without regular comparisons, you might not notice gradual premium increases, costing you more in the long run.

Is it a Good Idea to Bundle Home and Auto Insurance?

Bundling can be beneficial if it reduces your premiums while providing adequate coverage. Before deciding, compare bundled and individual policies to see how much you can save.

Tips for Bundling Your Insurance Policies

If you’re considering bundling, start with your Triton Insurance Group agent. They can help you understand how bundling affects your premiums and identify other discounts or policy adjustments that could save you money. Ensure you compare the same coverage types, amounts, and deductibles across insurers.

How to Bundle Home and Auto Insurance

  1. Submit an application – Your application for home or auto insurance may be approved immediately online or take a few days with an agent.
  2. Pay your premium – Once approved, pay the premiums to activate coverage. Discounts may be available for paying in full, receiving digital statements, or setting up autopay. Monthly payments are usually an option.
  3. Cancel your existing insurance – Ensure your new coverage is active before canceling your old policy. Avoid any gap in coverage by securing written confirmation of the cancellation.
  4. Receive any refund due to you – Canceling your policy usually entitles you to a prorated refund of your premiums. Some insurers may charge a fee for early cancellation.

The Bottom Line

Bundling home and auto insurance can lower your premiums, but consider all options before deciding. Improving your credit score can also help reduce insurance costs, as most states allow insurers to check your credit-based insurance score. While this differs from FICO® Scores, it’s based on similar factors. Checking your credit score can indicate if improving your credit could lower your insurance costs.

For more information on how bundling can save you money, contact a Triton Insurance Group agent today.

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Triton Agency works with hundreds of carriers so we can provide unbiased advice based upon what is best for our clients in both policy features and pricing. Whatever your Insurance needs (Home, Auto, Umbrella, Business, Liability or Workers' Compensation), we welcome you to experience the Triton difference.