While homeowner and car insurance policies are both important, many people find it expensive to have both. Consequently, they look for homeowners and car insurance quote as a bundle to get a more affordable full protection. The question: is it true that a bundle policy saves you extra money? Will the protection level get compromised as a result?
What is Bundle Insurance?
Bundle insurance is not an uncommon option among insurance policy buyers. When you buy a bundle insurance, it means you purchase several different policies from one carrier. It is different from package policy, in which you purchase one policy that covers several things.
With bundling, you can get several different protections, with homeowner and vehicle as the most common policy pair. Many people look for homeowners and car insurance quote as a bundle because of the thought that the full protection will give better coverage.
Conventional cars and homes are not the only things you can protect with this popular bundle. Carriers in the United States, for example, offer bundles for RVs, boats, vacation homes, motorcycles, and ATVs. Make sure you pick the right protection based on your own property and vehicle.
Benefits of Paying for Bundle Insurance
When you start asking for homeowners and car insurance quotes, yet still hesitate, think about the benefits you could get from purchasing this type of bundle policy:
1. More Convenience in Procedures
When you sign up for a bundle policy, you save a lot of time in dealing with the administrative procedures. Since you buy the policy from one carrier, the process is shortened significantly. Imagine the lengthy process of dealing with different forms and documents from several insurance carriers!
2. Easier Claim for Damages on Both
Sometimes, there are risks of both your home and vehicle being damaged, such as a big fire that obliterated a house and a car. If you have a bundle policy, it will be easier to file a claim. You only need to deal with one, and the result is a claim for two. This means you need to buy a single deductible with a price of two.
3. Layered Discounts Across the Board
When two individual policies offer discounts on their own, the discounts become layered when you combine them into a bundle. For example, you can get multiple discounts as a car owner, such as continuous coverage, skilled driving, driving course certificate, and many more. When you put it in your bundle with home insurance, you can get all those discounts from individual policies.
4. Easier Policy Management
Policy management, like dealing with monthly payment, can be difficult if you get homeowners and car insurance quotes from different carriers. With bundle policy, you deal with just one policy for the worth of two. There is only one renewal date and one regular payment schedule, making this policy management more convenient.
Are There Cons in Bundling Policy?
Before asking for homeowners and car insurance quote, you must also consider the possible disadvantages in using it. Some of the cons in bundling two insurance policies are:
1. Difficult to Get Specific Coverage
Check the policy notes before you ask for the quote. While this is not the case in all carriers, bundling policy might mean you cannot ask for super specific coverage. For example, some carriers might remove you from their eligibility list if you change the policy and apply for a personal liability claim.
2. High Rates Are Not Guaranteed
You probably think that getting a bundle means higher rates. However, this is not always true. Some carriers might reduce the rates when clients want to purchase a bundle package. This means you do not always get the best rates that you want.
3. The “Bundle” Might Involve a Third Party
Some insurance companies partner with a third-party company to provide the complete coverage in the bundle. While it could be effective, this means you need to maintain your policies as separate entities.
Tips to Save Money for Bundling Insurance Package
Before asking for homeowners and car insurance quota, there are ways you can save more money through the bundling package. Here are some tips to do it:
1. Increase Deductibles
Increasing deductibles might soon be risky, but it can help you reduce the price. By increasing the deductibles, you can get a cheaper premium. However, please note that you’d have to pay a little more money than usual after a collision on the road, for example.
2. Earn the Loyalty Discounts
Comparing carriers when shopping for insurance bundles is important. Once you find the right one, you are more likely to use it for many years. This would earn you loyalty discounts and other benefits that save money.
3. Regularly Review the Policy
Every few years, make sure to review your policy. Consider various life events that have happened, or will happen, such as wedding, school admission or graduation, changing career, and such. Compare homeowners and car insurance quotes between carriers. Make sure that your bundle policy gives what you need, or change for the better one.
Compare Bundle Insurance Quotes between Carriers
Notable insurance companies offer bundling options with various benefits, boasting various levels of discounts in monthly insurance cost. The newest U.S News and World Report data for the best homeowners and car insurance quotes present several examples from popular carriers, such as USAA, State Farm, Allstate, Nationwide, and Travelers.
The discounts for bundling policy are different between carriers, not to mention their benefits. For example, USAA offers a 10 percent discount in bundling policy and uniform coverage. Meanwhile, State Farm offers discounts up to USD1,127 and many options for specific coverage.
Other carriers offer extra benefits with their discounts. Nationwide offers a 20 percent discount and extra protection from credit card theft, but it is still unavailable in all states. Meanwhile, Allstate tends to be a bit more expensive, but the bundling discount can reach up to 25 percent. Travelers only offer 12 percent of discounts, but you can get options to protect eco-friendly residences.
If you buy the right package, a bundle insurance policy can give a lot of benefits and save your money without sacrificing protection. Make sure to compare the homeowners and car insurance quotes before you decide on a bundle policy purchase!