Should you bundle your auto insurance and home insurance? Six pros and cons
Bundling insurance involves getting more than one insurance policy from the same provider. Seeing as most people have both home insurance and auto insurance, combining those two policies is a popular choice, but you also have the option of bundling other insurance policies, such as life insurance.
There are advantages and disadvantages of bundling your auto and home insurance coverage, though, so you need to be aware of them before you determine what the right option is for you.
Two Cons of Bundling Auto and Home Insurance
Most people prefer the bad news first, so let us begin by looking at the cons of bundling your auto insurance and home insurance policies. There are two main disadvantages of bundling insurance.
You Could Get a Better Price Elsewhere
While one of the main advantages of bundling your insurance policies together is that you can often get a cheaper deal, that is not a given.
You will only know if you are getting the cheapest price if you compare prices between providers. That means looking at separate policies from insurers as well as prices for bundled insurance policies.
Getting a Great Deal on Your Insurance
If you fail to shop around, you could end up spending more than you have to on your auto and home insurance. Cheap car insurance can be found by using a reputable and reliable online comparison site like CheapInsurance.com.
You can compare quotes from hundreds of insurance companies to find the best coverage at the lowest cost. Furthermore, you can search for bundled policies for multi-car households. So, by using a comparison site, you could find cheaper auto insurance compared to the amount you would pay for auto insurance in a bundled policy.
You Could End Up with Two Insurers Anyway
The other main drawback of going with a bundled insurance policy is that many companies offering bundles actually act as affiliates for different insurers. So, even though you take out a bundled policy, you could still have your auto insurance with one insurer and your home insurance with another.
That means you could miss out on the ease of dealing with just one company and one account. Furthermore, if the affiliate relationship should come to an end, you could potentially face a sharp increase in cost and would therefore have to start shopping around again.
Four Pros of Bundling Auto and Home Insurance
Yes, you need to shop around to make sure you are getting the best deal for your auto and home insurance. But most of the time, you can save money by bundling your auto and home insurance policies together.
That is one major pro for why bundling is so popular. Here are some other advantages of bundling your insurance.
Bundling Policies Makes Your Life Easier
Things become much simpler and less time-consuming when you bundle your insurance policies. With just one insurance company to deal with, it will be much easier to keep track of your accounts and get answers to any questions you have quickly.
You Only Have to Pay One Deductible
The other great thing about bundling your policies is that you only have to pay a single deductible.
So, if a storm should damage both your house and your car, for instance, you would only have to meet one deductible before the insurer pays out. If your policies were with different insurance companies, you would have to pay two deductibles to two different insurers.
You Reduce Your Chances of Getting Dropped by Your Insurer
Some experts claim that having multiple policies makes it less likely for your insurer to cancel your coverage. Cancellation typically happens when you do something like move to live in a wildlife zone.
