How to bundle your home and auto insurance

Bundling your home and auto insurance policies with the same company is one way to save on the costs of both policies. It can also make it easier to manage your two insurance policies since they are insured with the same insurer. While many companies only bundle home and auto insurance, some will allow you to bundle other types of policies, like boat, RV, and life insurance.

However, each insurance company offers different bundling savings, so you may need to do a little homework to find the best bundling options and discounts for you. To get the best home and auto insurance package, gather your information and get multiple quotes from different insurers. You can compare quotes to find the company with the best package savings and determine if the home and auto package is right for you.

How does a home and auto insurance package work?

A home and auto package works the same as buying the two policies separately, except that both policies are underwritten by the same insurance company. Insurance companies offer the bundled discount as an incentive to insure both policies with them rather than shopping for individual carriers. Even if you bundle the two policies together, they remain separate policies and operate independently to provide the coverage described in the policy.

For example, let’s say you go off the road and into someone’s house, damaging the exterior. Luckily no one is hurt, but you have to pay for the damage to the house. Although you have third party liability coverage under your bundled home policy, this coverage does not apply to damage you have caused with your car. Instead, your property damage liability coverage under your auto insurance policy would pay for the damage you caused.

Understanding home insurance

Although there is no legal requirement for home insurance, your lending company will usually require it to be approved for a mortgage. Even if your home is reimbursed, there are a wide range of coverages offered in a home insurance policy that can protect your home and be worth the cost. For a house with housing coverage of $250,000, the national average annual premium is $1,383, or about $115 per month.

What home insurance covers

Four basic coverages are offered on most home insurance policies:

  • structure of the house
  • Personal belongings
  • Public liability
  • Loss of use (additional living expenses)

There are additional coverages you can add if needed to supplement your home insurance policy or if you are looking for more coverage. The types of additional coverages and the limits offered vary by operator.

Factors That Affect Your Home Insurance Rates

When shopping for new insurance, several factors are used to determine your rates, including:

  • Your age
  • Location
  • Marital status
  • Age of house, roof, appliances and systems
  • Claims History
  • Credit history (in most states)
  • Selected covers
  • Franchises

When your home insurance policy is due for renewal, your claims history and coverage limits are the most important factors used to determine renewal rates.

Learn more: Average cost of home insurance

Information needed to take out home insurance

Be prepared to prove the following information when shopping for home insurance:

  • Full name
  • Date of Birth
  • Marital status
  • Social Security number
  • Previous policy information
  • Mortgage/Lender Information
  • Home information (age, style, age of roof and systems, square footage, any upgrades, security features, etc.)

Learn more: Affordable home insurance companies

Understanding auto insurance

In most states, you are required to have a minimum amount of liability coverage on your auto insurance. If you choose only minimum liability coverage, there is no physical damage coverage for your car, only coverage for the other driver if you cause an accident. You may also need to purchase other coverage, such as personal injury protection (PIP) or uninsured motorist coverage, depending on your state. Comprehensive insurance will help you cover physical damage to your car, no matter who is at fault.

Factors That Affect Car Insurance Rates

The average cost of comprehensive car insurance per year in the United States is $1,771, or about $148 per month. When you get a quote for auto insurance, you should be prepared to provide the following information to get your personalized rate:

  • Full name
  • Date of Birth
  • Marital status
  • Claims History
  • Vehicle Information
  • Coverage needs

You will need to provide personal information for all drivers in the household. All of these factors are included in determining your car insurance premium rates and whether or not the insurance company will offer you coverage.

How to bundle your auto and home insurance

  1. Gather all the information you need to get home and auto quotes. Having all the information ready will make the quote process easier and faster. Obtaining quotes before your renewal dates for your current policy may qualify you for an early quote discount.
  2. Get quotes online or work with an independent agent to get quotes from multiple carriers to compare. Independent agents work with multiple carriers, so they can do the shopping for you. If you prefer to get quotes yourself, be prepared to fill in your information each time to get quotes from each carrier.
  3. Compare quotes. The best way to compare home and auto bundles is to get the same coverages in each bundle. This way you can make a better comparison on the price. Pay attention to additional benefits, coverages and discounts offered by some carriers that others may not offer.
  4. Make a decision and finalize. After comparing quotes and asking questions, you should be able to make an informed decision about your home and auto package. Notify the agent or carrier so you can finalize requests, set up your payment, and switch carriers.

Can I bundle other fonts?

Yes, you can bundle other policies, although the types of policies that can be bundled vary by insurer. Some fonts you might be able to bundle for more savings are:

  • Vacation home
  • VR
  • Boat
  • MTB
  • Life insurance
  • Motorbike

Advantages and disadvantages of grouping

Significant savings potential Savings may not be worth switching
Get targeted customer service Cannot be combined with the same carrier
Less likely to be abandoned after multiple complaints Satisfaction of claims differs by policy type
Could unlock additional discounts

Advantages

  • Significant savings potential: Some carriers offer savings of up to 25% or more when they bundle home and auto. This could represent big savings on both policies.
  • Get targeted customer service: If you have multiple policies with the same insurer, it may be easier for the company to know your needs. In turn, your agent may be in a better position to ensure that there are no coverage gaps and that you are fully protected.
  • Less likely to be abandoned after multiple claims: Whether you have a bad luck streak or live in a high-risk area, if you file too many claims, you could be dropped. However, the more policies you have with a carrier, the less likely the company is to drop you for excessive claims.
  • Could give you access to additional discounts: When you bundle your home and auto insurance, you’re less likely to switch carriers, and staying with the same company can unlock additional loyalty and longevity discounts.

The inconvenients

  • Savings may not be worth switching: If you already have low rates, the savings on the home and auto package may not be worth the time and effort it takes to switch carriers.
  • Cannot be combined with the same carrier: Not all insurers offer both home and auto insurance. Instead, they work with affiliate companies to offer the bundled discount, but each policy is insured with a different company.
  • Satisfaction of claims differs by policy type: Some insurers may be good at handling car insurance claims, but lack customer satisfaction with owner claims, or vice versa. If the company has low satisfaction ratings in a line of insurance you need, you may want to rethink purchasing that type of policy from the company.

Frequently Asked Questions