A common method to obtain cheaper insurance is to bundle your car and homeowners insurance together.
Your insurance company may offer a “bundling” discount if you have more than one type of insurance with them.
When deciding whether to bundle, it pays to do some research. Bundling may save you money in some cases, but in others it may not.
Some companies say their customers can save up to 30 percent when bundling their home and car insurance. Adding another policy such as motorcycle coverage can push savings to 35 percent.
In addition to reducing your premium, many insurers offer savings on deductibles.
For example, there are programs which let consumers pay only the highest deductible on their bundled policies if multiple assets are damaged. For instance, if a tornado damages your house, car and boat, you will pay one deductible (the highest one). The others are waived.
Convenience is another advantage to bundling. It reduces the amount of paperwork and simplifies policy management. You don’t have to deal with multiple insurance companies and there is only one renewal date to remember. If you have a claim, you need to call only one company.
In addition, when insurers have access to all of the consumer’s policy information, the insurance adviser can identify coverage gaps and can readily make the necessary coverage recommendations.
Nonetheless, comparison shop for both bundled and unbundled rates if you’re looking for the best deal.
Today you can compare quotes on all types of policies online.
But be cautious. Some companies are better at insuring cars than homes, so examine the protection level on the home insurance policy before bundling.
Before bundling, ask for ALL the available discounts. Just remember that if you bundle your car and home insurance policies together you may save a decent amount of money every month as you fork over the money for the premiums.