Can You Bundle Home and Car Insurance?
Are you thinking of bundling car and home insurance for discount perks?
This might sound like a good idea. After all, it’s like a one-stop-shop with less hustle on paper works and deductibles.
According to HomeownersInsuranceCover, the decision of whether or not to bundle your car and home insurance together shouldn’t be taken lightly. Before anything else, you have to weigh the benefits and risks first considering that bundling your insurance under one company may not work best for you.
That said, it’s bundling them both is indeed possible. However, why does bundling your car and home insurance a good idea?
There are Discounts
Of course, this is one main reason why many consider bundling their home and car insurance policies under one company. Insurance companies usually offer discounted perks on their premium policies up to as much as 30% depending on the state you live in. It could be the best discounted price consumers have.
You Get Increased Chances of Approval
Insurance companies are likely to reject your application if you have too many claims on your insurance policy. For example, if you live in an at-risk property or if you own a high-end automobile, this will make your assets harder to insure. However, they are likely to approve you if you avail both of their policies.
Bundling will not only save you money, but it will also save extra time and energy. Bundling your home and car insurance policies mean reduction in time discussing with two agents from two different insurance companies.
Say, one stormy night, a tree falls right on your garage with your car inside. This means that you’ll pay for both policies separately before you’ll get your insurance claims. Bundling the two together, however, will lower this deductible.
However, you might want to ask yourself if bundling is really the best option for you at this time. That said, here are some of its downsides:
If discount and convenience are your primary reasons for bundling your insurance policies, you may be missing out other available policies that could be way better than the one you have at hand. You’ll never know, other insurance companies may have less costly premium insurance for separate car or home policies than have them bundled together.
Subtle Premium Cost Increase
Basically, you will save a certain amount if you bundle your car and home insurance together – at least at the start. There is a chance, however, that your insurer can subtly increase your premium rate. Hence, if you are not keen enough to do the math before deciding, you might be losing more than saving.
Possibility of Reduced Coverage
That is why it is important to read the terms and conditions of the bundling policy properly before finally deciding. Bundling may save you a certain amount, although it might only be in the short term. Unknowingly, you may be availing of bundled yet lesser-covered car and home insurance policies which will cost you more in the long term.
Before finally coming up with a decision, just a little reminder so you won’t feel defeated at the end:
- Do your research. It won’t cost you much to do price shopping of premium rates for car and home insurance.
- Compare what you will pay for the bundled coverage and what you will pay for separate policies. Sometimes, bundling car and home insurance policies together will cost you more than having them separately.
- Evaluate your resources and needs. Explore your available options. Make informed decisions. These are all keys to decide if bundling your insurance policies is worth your time and finances.