Bundling car insurance with home insurance under one provider is pretty standard for many who look to make their policies easier to handle and maybe save them a dollar or two in the process. Most every insurance company offers a discount for multi-policies as an incentive for customers to consolidate their coverage-a pretty attractive option if attempting to cut corners financially. But while bundling can save you real money, there are a few trade-offs to consider. Here's a rundown of the pros of bundling your car and home insurance. We're going to discuss whether or not it's right for you.
Immediate Discount
The most immediate and obvious financial benefit that comes with bundling is perhaps the discounts many insurers give for holding multiple policies with them. Discounts can range anywhere from 5% up to 25%, depending on the provider and the policies involved. For many consumers, this will equate to sizable annual savings, particularly when insuring both home and auto-two very key and often expensive types of coverages. These discounts, on their part, when added up over time, result in serious savings; hence, bundling could be an extremely valid option for people who just want to try and lower their insurance expenses.
Simplified Management
Bundling your home and car insurance could make managing your policies infinitely easier. All you have is one provider to deal with, meaning there is only one point of contact, one renewal date, and a single payment to consider. This may save you time and alleviate much of the stress of juggling multiple policies, payments, and providers. If customer service is important to you, a bundling may offer peace of mind in knowing that you will have only one company to deal with for all of your major insurance needs.
Better Bargaining Power
When you bundle your policies, you are often in a better bargaining position when it comes to negotiating with your insurer over your rates or your coverages. Providers like multi-policy customers, and in some cases, may have more incentive to take care of you with additional discounts or perks to keep your business. Sometimes, too, the bundle can make it easier to tailor your coverage; because the insurer has you wrapped up, they may be more willing to work with you to build a policy that suits your needs.
Potential Loyalty Benefits
Most of the insurance companies offer additional discounts or loyalty benefits for long-time customers. The combination of car and home insurance gives you a closer connection with your insurance company, and this relationship may result in more favorable treatment and more favorable conditions in the future. These benefits may include faster settlement of claims, premiums at better rates if there were no accidents, and lower deductibles.
Conclusion
For most consumers, bundling car and home insurance just makes a lot of sense: saving money, making policy management easier, and enjoying other perks provided by insurers. Still, it is not all in one bag. While the multi-policy discounts that are being made available are really enticing, their pros and cons have to be weighed in view of individual needs, coverage quality, and rates provided by both specialized and bundled policies. Compare providers before bundling, then consider your coverage needs and make sure the savings is in your better interest than any of the disadvantages. At the end of the day, it's a decision for bundling, but there is much thought involved considering financial goals and insurance needs.
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