Auto Insurance And Homeowner's Insurance - Important Considerations

auto insurance homeowners policy bundle policies coverage

Home insurance is not compulsory like auto insurance, but it is smart to have one. Homeowners in the US typically purchase home insurance and car insurance separately, due to the diverging timeline of the two investments. It is often a financial burden for them to pay for various coverage plans from different insurers. 

The easiest way to manage finances without compromising on your home or auto coverage is by bundling the two types of insurance policies together. Bundling multiple policies from the same insurer can give you access to incredible offers and discounts.

Why Should Insurers Bundle Policies? 

Here are some of the reasons most insurance holders like to bundle their policies – 

1. The discount after bundling can range from 5% to 25% respectively for each plan. 

2. The insurance agent, who looks after your car insurance can also take charge of your home insurance. 

3. People can manage two or more policies on the same web portal. 

4. Auto insurance can be costly for individuals with multiple traffic tickets and DUIs. Coupling more than one insurance can lower the chances of high premium. 

Before you bundle the policies together, compare the quotes from different companies for their separate policies and bundled policies. 

How To Bundle Several Policies Together Successfully? 

Here are a few ways to bundle the policies efficiently – 

1. Instead of going door-to-door, you can find an efficient independent agent, who can give you quotes from best homeowners insurance companies and car insurers. Compare the car insurance and home insurance quotes you receive individually, then compare them against the bundled policy. Independent agents typically work with multiple companies, and they can provide you with the latest quotes from more than one insurer. 

2. Always inquire if the insurer you have chosen uses third-party services for any of its policies. Whether it’s the car insurance or auto insurance, you can miss out on the convenience and the discount since you will end up dealing with multiple companies every month. 

3. Shop for quotes regularly if you are working alone. Compare them at the end of each collection with the price of the bundled policies you may have right now or wish to buy in the future. 

When Is Bundling A Great Idea? 

Homes in areas with extreme weather conditions, on fault lines or in flood-prone areas typically have high insurance rates. Similarly, owning an automobile in these areas can be costly due to the cost of comprehensive coverage. In such regions, finding cheap auto insurance and home insurance is easier from insurers that offer bundled policies. 

When Should You Not Bundle The Policies? 

Bundling is not an option if you own a high-value or limited production or customized vehicle. The premium for the insurance of such vehicles typically outweigh the benefits one can enjoy from bundling multiple policies. In such cases, it is wise to approach insurers, who specialize in the insurance of high-end automobiles. 

While Switching Insurers 

When you already have a homeowners insurance or auto insurance with a company, but you want to change to one company, you need to handle the procedure with caution. Ensure that they are not charging you cancellation fee or coverage modification fee. Cancellation fees can be significantly high for individual insurers, and it can override the savings from bundled policies.

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