Why Bundling Home and Auto Insurance Saves You Money

Bundling your home and auto insurance with the same provider is one of the smartest financial decisions you can make. While using the same insurance company for both policies may seem simple on the surface, the savings, benefits, and convenience extend much further than many realize.

In this article, we’ll explore the many reasons why bundling home and auto insurance typically saves 20% or more over keeping the policies separate. Beyond the discounts, you’ll also benefit from working with just one insurer, streamlined billing and claims, multi-policy rewards programs, and better protection overall. We’ll also look at common misconceptions about bundling. Read on to learn why combining home and auto under one insurer delivers significant savings and advantages you won’t find anywhere else.

Discount for Bundling

Bundling your home and auto insurance policies with the same provider is one of the easiest ways to save a considerable amount on your insurance costs. Most major insurance companies offer a multi-policy discount, usually around 5-15% off your total premium when you bundle. This means you can save hundreds of dollars per year simply by having your home and auto insurance with the same company.

The discount is given because insuring both policies with one company is more convenient for the insurer. It's more efficient for them to service multiple policies under one account, rather than having to administer separate accounts. There's also an assumption that bundling customers are lower risk, since they take the time to organize multiple policies. Whatever the reason, it pays to take advantage of this discount when available.

Bundling home and auto insurance should be a no-brainer if you want to maximize savings. Just make sure to compare bundled quotes from various providers, as the discount amount can vary. Going with the company offering the highest multi-policy discount will ensure you save the most money.

Convenience and Ease

Bundling home and auto insurance policies with one insurance company makes your life easier with one point of contact for both policies. You only need to make one payment to one insurer each month, instead of separate payments to multiple companies.

Having both bundled policies with the same insurance provider allows you to manage all your policies through one website or mobile app. You won't have to keep track of different logins, websites, apps, bills, payment dates, customer service numbers, etc. Managing everything through one platform is simpler and more convenient.

Filing claims is also smoother when you bundle home and auto. You only need to make one claim to your insurance company instead of reporting separate claims for your home and auto policies to multiple insurers. The insurance adjusters have visibility into all your policies with that provider, facilitating faster claims resolution.

The convenience of working with one insurance company for multiple policies is a major perk to bundling home and auto insurance. The streamlined experience saves you time and hassle.

Better Service

When you bundle home and auto insurance with the same provider, you get to work with one dedicated agent or team that handles both policies. This streamlines communication and coordination, so you don't have to repeat yourself to multiple companies or track down different agents to get answers.

Your bundled agent will get to know you, your specific needs and situation in depth. They can provide highly personalized service and advice tailored to you. Any time you have a question or issue, you have one point of contact who is familiar with all aspects of your policies.

Filing claims also becomes simpler with a bundled policy. There's no finger pointing between insurers over who should cover what. Your agent can walk you through the claims process for both home and auto seamlessly.

By bundling, you can enjoy a higher level of service and less hassle dealing with insurance providers. You don't have to manage multiple accounts, payments and renewal dates. Just work with your dedicated agent or account team for a smooth, unified experience.

Lower Premiums

Bundling home and auto insurance allows insurers to offer policyholders a discount that results in lower premiums. This is because when a customer bundles multiple policies with the same company, the insurer's risk is reduced.

The insurer has secured that customer's business across multiple policy types, reducing the risk of losing that customer's business altogether. If a customer has both home and auto with an insurer but decides to shop around just one of those policies, they are still less likely to leave the insurer completely compared to a customer with only one policy.

Additionally, bundled customers tend to be more loyal with fewer lapses in coverage. Since the insurer has to do less work to retain that customer's business across multiple policy renewals, they incur lower expenses. These savings get passed along to the customer in the form of a bundled policy discount.

So bundling home and auto insurance allows insurers to share their reduced risks and costs with customers, leading to lower premiums compared to separate home and auto policies. The customer benefits from the convenience and savings of bundling while the insurer benefits from customer loyalty and retention. It's a win-win situation for both parties.

Fewer Lapses

Bundling home and auto insurance can lead to fewer lapses in coverage. When policies are bundled, there is only one renewal date to remember instead of separate dates for home and auto. This makes it much less likely that a customer will forget to renew one of their policies on time.

With separate home and auto policies, it's easy to accidentally let one lapse when juggling multiple renewal dates. But when they are bundled, there is just one date to keep track of. Customers enjoy the convenience of renewing all their coverage in one step.

Lapsed insurance can lead to gaps in coverage or higher rates. But bundling home and auto makes it effortless to renew on time. The simplified renewal process leads to fewer lapsed payments and fewer gaps in protection. Customers can rest assured knowing their home and car are covered without having to stress about tracking multiple policy expiration dates.

Bundling brings peace of mind by reducing the chance of an accidental lapse. With less to keep track of, customers can renew their bundled policy promptly and avoid coverage gaps. The ease and convenience of bundled renewal is a key benefit for many policyholders.

More Coverage

When you bundle your home and auto insurance with the same provider, you can often maximize your coverage needs more easily. With a single insurance company handling both policies, they can streamline your total insurance protection and fill any gaps that may exist when you have two separate providers.

For example, certain damage from an auto accident may not be fully covered by just your car insurance if it also impacts your home. Having bundled insurance makes it simpler to sort out these grey areas and achieve full coverage through enhanced coordination between your home and auto policies. Essentially, bundling acts as a protection net to ensure no losses slip through the cracks.

Bundling also provides an opportunity to re-evaluate your coverage needs as a whole. Rather than determining home and auto coverage separately, you can take a big picture view with your insurer and optimize protection for your overall assets and risks. This prevents overlap in some areas and shortfalls in others. The result is a customized suite of insurance that provides you with the right amount of coverage.

Loyalty Savings

Insurance companies reward long-term customers who bundle home and auto policies. Customers who stay with the same insurance company for 3-5 years or longer qualify for loyalty discounts. These discounts start around 5-10% and increase the longer you retain your policies.

Bundling home and auto is an easy way to hit the tenure requirements for the biggest loyalty savings. With both policies on one account, you naturally keep them together year after year. This allows you to unlock the maximum discounts over time.

Loyalty programs vary by insurance company, but most offer savings for multi-year customers. The longer you maintain your bundled account, the higher your discount grows. This gives you a financial incentive to renew your policies every year rather than shop around. Renewal discounts apply automatically, so you save money without lifting a finger.

Staying with the same insurance company has advantages beyond monetary savings. Long-term customers get priority service and the benefit of familiarity with their agent. Switching insurance constantly means starting over with a new company each time. Bundle your home and auto for loyalty perks and to establish a lasting relationship.

Simpler Claims

When you bundle home and auto insurance with the same provider, you only need to file claims with one insurer instead of two separate ones. This makes the claims process much simpler.

You don't have to worry about contacting different insurance companies, managing multiple adjusters, or coordinating between policies. Everything goes through your one insurance provider. They have all your policy information in one place and can handle the claim from start to finish.

Filing claims with a single company is more efficient for you and the insurer. The insurance company doesn't have to communicate with another provider to sort out the details. And you don't have to act as the go-between. The bundled insurer coordinates everything behind the scenes and provides a seamless experience.

The convenience of dealing with only one insurance company allows you to focus on recovery rather than paperwork. Bundling alleviates the headache of filing multiple claims and streamlines the process.

Conclusion

Bundling home and auto insurance policies together offers customers many potential benefits that add up to significant savings over time. By combining coverage with one insurer, the overall premiums are lowered due to multi-policy discounts and the convenience of managing everything in one place. Policyholders can enjoy simpler claims and servicing as well as loyalty rewards for remaining with the same provider for an extended time. But most importantly, bundling allows most customers to obtain more complete protection for their valuables while spending less out of pocket in the long run. Though the discount amount varies, the overall value proposition of consolidated policies remains clear. For comprehensive coverage at an affordable rate, bundling home and auto is an advantageous option for many households.