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Can I Bundle Car Insurance and Home Insurance?

January 31, 2022 Auto Insurance

Not sure if you can bundle your car insurance and home insurance together? Are you unclear on what bundling these two policies means?

We’ll answer your most pressing questions here so that you can make the best decision for your situation.

What Is Bundling?

The concept of bundling spans across several industries, including banking, software, insurance and automotive services. The general idea is that you can save money by purchasing either related or unrelated products or services together in the same transaction. As a result of bundling, you can get a better price than if you had purchased the products or services individually.

In the case of car and home insurance, you can usually bundle the policies together and save money in the process. This process is often referred to as getting a “multi-policy discount.”

If an insurance company offers both car insurance and home insurance options, you will be able to bundle your policies together.

Benefits of Bundling

There are several reasons to consider bundling policies together, including:

  Save money. Discounts vary, but you may be able to save anywhere from 10% to 30% when you bundle your car insurance and home insurance policies together.

  Streamline your policies. It’s not always easy to stay organized and track a bunch of bills from several companies. When you bundle insurance policies together, you’ll have the added convenience of only having to pay one bill.

As a result, you could save money on stamps or find that it’s much easier to only have to log into one website to access policies, pay bills, contact customer service, and perform other insurance-related tasks.

  Develop a stronger relationship with your insurance company. Let’s say you have a particularly bad accident that causes your insurance company to consider dropping you as a client. If you have multiple policies with the same company, you may be more likely to keep your coverage intact.

When to Consider Bundling

You can change policies and switch auto insurance companies at any time.  Because of this flexibility, you can theoretically bundle at any time, though there are specific time periods when bundling makes the most sense.

  1. You recently learned that bundling is an option. Now that you’re reading this article, you are probably thinking of the different insurance policies you have and whether they’re all under one roof. You might have bought renter’s insurance when you signed a lease or homeowner’s insurance when you bought a house without even thinking about your car insurance policy. If you have policies with different companies, consider bundling.
  2. You are trying to save money. Whether you’re streamlining your budget for the new year or you’re looking to put more money in your pocket, ask your insurance agent about auto insurance bundling options. You could potentially save hundreds of dollars.
  3. You’re buying a home. You’ll need homeowner’s insurance when you buy a home, so it’s a good idea to look into bundling options at this time. You can check with your current insurance company or shop around with other providers.

Tips for Bundling Your Home and Auto Insurance

Whether you decide to bundle your policies or keep things separate, we recommend these two best practices:

  1. Shop around. You don’t have to feel obligated to go with the first company or quote you see. If the price of the policy seems high or coverage is lacking, ask your insurance agent if they can do better. You can also check with other companies to compare prices and options.
  2. Get quotes regularly. The insurance industry is constantly in flux. While you may see your policy rates go up and down with each renewal cycle, it’s a good idea to continue to seek out insurance quotes annually. The process only takes a few minutes, and it’s a good way to ensure you’re getting the best coverage for your money.

When You Should Avoid Bundling Car Insurance and Home Insurance

People tend to have mixed feelings about bundling. On the one hand, bundling different policies together often leads to cost savings. You’ve probably heard the commercials talking about how much you can save by bundling your cable, Internet, phone, and entertainment services together.

The reason people “hate” bundles is that they feel like it leads to them overpaying for a service they don’t need.

For example, if you have a cable bundle that includes a landline service that you never use, you might feel like you’re being overcharged. This conclusion is logical, but it overlooks the possibility that the other services became cheaper overall due to the bundle. Every bundling policy is different across companies and industries, so it’s worth evaluating your bundling options to see what makes the most financial sense.

In the case of bundling home insurance and auto insurance, there are a few things to consider before combining the two:

  Cost. Make sure you are really saving money. Though bundling typically results in cost savings, it’s not always the case.

  Flexibility. If you decide you want to “unbundle” in the future, what is the process like? What penalties are involved?

  Bundling options. What bundling options are available? There’s no one-size-fits-all model here, so make sure you get all the details you can before making a decision. You may even be able to add life insurance, boat insurance, RV insurance, and more to your policy for even better savings.

Receiving a discount for bundling is, of course, a distinct advantage, but make sure you are happy with your insurance provider before adding more policies. Consider how you’ve been treated in the past (for example, did you experience unexplained rate hikes?), the customer service team, agent accessibility, website performance, and other factors that contribute to your experience before doubling down.

With a team like Encore Insurance, we provide superior coverage with personalized service. We are based in Michigan, and we serve Michigan residents. Our smaller size combined with our depth of experience makes us a top choice for discerning people who want the best coverage at an affordable price.

Are You Thinking of Bundling Car Insurance and Home Insurance? Contact Us!

At Encore Insurance, we tailor insurance solutions for each customer so that you’ll have the most comprehensive coverage that suits your needs at a price you can afford. Call us at 248-466-0200 to chat with one of our friendly and knowledgeable insurance agents.