How Bundling Auto and Homeowners Insurance Saves You Money
Save a bundle… by bundling!
You really can save significantly when you negotiate an affordable auto insurance and home insurance bundle.
But what does that actually mean? What does “bundling insurance” get you? How does it reduce the cost of coverage, and how do you get these savings? Keep reading to find out.
The Basics of Insurance Bundling
By now, it probably comes as no surprise to you that the more you buy from a single source, the less you’ll pay per unit. You’ll likely pay less for each when you buy 10 of a particular item than another shopper who only buys one.
It works the same way with your coverage. If you’re looking for homeowners insurance, the first place you might consider shopping is with the provider who already holds your auto policy, and vice versa. They’re already quite happy with you as a customer and would love to do more business with you. Best of all, they’re willing to pay for the privilege.
That’s what bundling is all about. You might earn rate discounts on one form of coverage from the insurer who already provides you with another form because they want to keep and expand your business.
Why Home and Auto? The Perfect Pair for Smart Savings
Depending on your lifestyle and needs, you might carry several kinds of coverage. You should insure your boat, motorcycle, business, life, or apartment — the list is almost endless.
And yes, you might be able to bundle two or more forms of additional coverage from the same insurer. The reason many policyholders consider an auto and home or renters insurance bundle is that they should carry both forms of coverage. Home insurance and auto coverage are the ones that likely cost the most and come closest to stretching the family budget.
That means rate discounts are more meaningful for those two policies than they might be for coverage that costs less in the first place.
Regardless, it pays to discuss all the policies you own and your full coverage needs with your insurer. A savvy agent might be able to find bundling discounts you never even knew existed.
Breaking Down the Benefits: What These Bundles Offer
Whether bought separately or together, good auto and homeowners policies offer peace of mind. It’s that simple.
Full coverage auto insurance includes comprehensive and collision benefits. Together, they’ll offer financial protection in almost every situation. That’s in addition to injury and property damage benefits if you’re at fault for an accident and others require medical attention or coverage for their own claims. A good auto policy will also offer legal protection if you’re sued for at-fault damages.
Your homeowners policy protects what is most likely your single largest investment. If you have a mortgage it is likely required, but even if you own your home outright, learning what exactly homeowners insurance is and how it works is critical for your financial protection. It covers your home for damages due to fire, smoke, natural catastrophe, burglary, and other calamities. Even injuries and legal claims from someone who is hurt while at your property are usually valid homeowner’s claims.
When you buy one policy from an insurer with which you’ve trusted another line of coverage, you’re assured of ultimate financial protection at the most affordable rates.
Crunching the Numbers: How Bundling Cuts Costs
Will your bundling strategy always save you money? How much?
The answers start with individual carriers. Some insurers are more motivated than others to extend deep discount offers in order to expand the business relationship with policyholders. But which are the most motivated to work with you? Which companies offer the best home and auto insurance bundles?
A knowledgeable independent agent will be able to answer all your questions and steer you toward the best deals on auto and home insurance bundles. Independent agents don’t work for just one insurer, so you won’t get caught in a situation where your agent happens to work for a carrier that doesn’t offer the best bundling rates.
Your independent agent represents multiple insurers. Share the coverage you already have, and your independent agent can approach that carrier for bundled rates on additional coverage or recommend a competitor who will be happy to bundle your home and auto and let you enjoy generous savings.
But how much savings?
Compare and Contrast: Bundling vs. Separate Policies
Once you’ve found an insurer that offers the best bundling benefits for auto and home, let the numbers crunching begin.
Again, your rates will vary depending on how motivated your insurer is to, in effect, double your policy involvement with their company. There is no set discount rate for auto and home bundling, but careful shopping by your independent insurance agent might well yield rate discounts in the area of 25% to 30% off each policy.
That, along with other strategies shared by your agent to help you lower your car insurance rates, can be a significant savings and one that’s surely worth exploring.
Unlocking More Value: Additional Perks of Bundling
What you’ll most notice in terms of the advantages of bundling auto and home is the bottom line benefit — the cost savings. But there’s more.
Loyalty Rewards: Beyond the Initial Discount
Sure, your insurer wants to expand the services they offer you. But that’s not the only way they encourage you to stay with their company. Yet another strategy is to offer loyalty rewards.
Loyalty rewards are rate discounts designed to keep customers loyal and to nurture long-term relationships. Your insurer is particularly motivated to extend these incentives to you if you’re bundling your auto and homeowners coverage with them. This results in yet additional rate cuts over time.
Simplified Policy Management and Other Time-Saving Benefits
This is one area of incentives to bundle your coverage that doesn’t involve your pocketbook, but it’s yet another reason to consider checking out this strategy.
There are significant advantages to having a single independent agent who is familiar with both policies and knows the details of your coverage. Pick up the phone and talk to one representative when you have any questions regarding either one of your auto and home policies.
It’s the same situation when you need to file a claim. One agent can help you get a check regardless of which policy is involved. This will save you time and hassles when you must deal quickly and efficiently with either policy.
Choosing the Right Bundle for You
Select an independent insurance agent and let them do the rest. Show them the policies you already have — if any — and make sure they know what you need in the way of coverage and what you’d like to pay.
Your independent agent can get your common questions about auto insurance answered, shop for coverage, and help you compare and contrast plans.
Pay careful attention to a good agent because you’re likely to also learn additional strategies for saving money on car insurance, such as helping your new teen driver find discounts like one for being a good student.
Get Started by Bundling Home and Auto Insurance
Should you bundle your home and auto insurance coverage? Is that the right approach for you and your family to take? Just ask an independent agent from Acceptance Insurance for answers. Your agent will get you auto and home insurance quotes, crunch the numbers, and offer you a range of options that might well include bundling your auto and home coverage if it makes good financial sense.
Call Acceptance Insurance at (877) 405-7102 or get a quick online quote for auto insurance and homeowners coverage. Bundling with Acceptance is easy: Simply tell your agent you want to check how much you can save by combining your policies together. You can also find an office near you to book an appointment with one of our helpful, knowledgeable independent agents.
