Daily living expenses are increasing, and finding savings on your recurring expenses like home and auto insurance helps your bottom line. Even without feeling inflation’s pinch, it’s never a bad idea to look for discounts.
Insurers offer many types of discounts with their policies — particularly home and car insurance.
While specific discounts vary by insurer, most carriers offer a discount when you bundle your auto and home insurance. The principles addressed below will help you as you consider bundling car and renters insurance and compare rates.
Bundling & Premiums
When you acquire insurance coverage, you pay a monthly or semi-annual fee referred to as a premium.
When you bundle your home and auto coverage together from the same insurer, you’ll often benefit from a discount on the premiums. The savings rate on monthly premiums typically ranges between 10% and 25% depending on the insurer.
As you consider these savings, be sure to compare the actual bundled rate across a few insurers. The saving rate may be different, and you’ll also want to consider the actual cost of the policy and the coverage offered.
Many factors go into setting an insurance rate: driving history, claims history, age, gender, etc. So, you’ll want to compare specific quotes to identify which company offers the coverage you need at the best rate.
Bundling & Claims
In addition to savings on the premium, you may benefit from a single deductible. For example, if the same event damages both your home and car, your insurer may only ask you to pay one of your deductibles instead of both.
You’ll still need to file a claim on each policy, and it’ll be with the same company, which is another perk.
It’s easy to focus on the price, but you also need to be sure that you’re buying the coverage you need.
As you compare pricing, look at the insurer’s financial strength and track record with claims.
You want to choose an insurer with a high financial strength rating. This rating indicates an insurer’s financial stability and ability to make claims payments. Many insurers are rated by A.M. Best, thought there are other ratings agencies. Most competitive insurers are highly rated and advertise their ratings on their websites.
It can be trickier to understand an insurer’s track record with claims. First, understand how their claims process works. This information can usually be found on the insurer’s website.
Next, it’s worth seeing what customers have to say about their experience with the company and with claims. Asking friends and reading customer reviews can help you understand the insurer’s customer service.
Beyond choosing a reliable insurer, you’ll want to make sure that the home and auto policies will meet your needs. In many cases, you’ll find comparable coverage options and customizations. However, there are some distinctions across policies. You’ll want to note any coverage differences as you’re comparing bundling pricing to ensure an apples-to-apples comparison.
Comparing bundled rates across insurers, even if you’ve already bundled your current policy, will help you save money and ensure that your home and car insurance coverage meets your needs.