Auto and Home Insurance
Written by Michael Browne
One of the most common ways to reduce the cost of auto insurance is to bundle it - or combine it - with the insurance on your home. But why does this benefit you, and how much can you really save?
There are several reasons why it makes sense to have your car and homeowners policies with the same company. They include:
- Convenience: With a single policy, you only have one company to call if you have to make a claim, and often there is only one monthly payment to make, as well. Not only does this save time, but it means there's just one phone number to keep track of. In an emergency, the last thing any of us needs is to have to hunt down the right insurance agent.
- Coverage: Generally speaking, buying home and auto insurance together gets you more coverage on each part of the policy. This is partly because homeowners need to have added liability insurance to ensure that their homes are safe from lawsuits.
- Cash: The most compelling reason to combine auto insurance and home insurance is, of course, the financial savings. Not only do most people see their premiums drop from 15-20%, but in some cases, there is only one deductible to pay. As well, you can increase your savings by adding a second car, or adding a life insurance policy to the mix.
If you're a homeowner it just makes sense to at least ask your existing car and home insurance companies if bundling your coverage would save you money, but you don't have to have a home of your own to do this. Most companies will also offer a discount if you combine a condominium owners policy or renters insurance with your auto coverage, though it may not be quite as large.
Put briefly, bundling is better for the bottom line.