Bundling Home and Auto Insurance

It is always worth discussing bundling your home and auto insurance with your agent. One of the benefits of bundling (also known as packaging or Package Policy) is the discounts you may receive on your home and auto premiums. Depending on the insurance company, the discounts could be substantial. Another benefit to bundling is the leverage it can provide. Your insurance company will typically give more underwriting consideration to clients that have bundled with them for a few years versus those that only have one policy with them. For example, you could be offered a renewal even if you had a claim or two versus not being renewed. And finally, another benefit is the combined billing it affords you. Some clients like the convenience of having one bill for the two policies.

Are there any downsides to bundling home and auto insurance?

I would not use the term “downside” as bundling is always the preferred first option to consider when looking to find the most comprehensive auto and home coverages for the best price. However, there are challenging situations that make bundling simply not an option. Those situations involve market or risk conditions. Some examples are: * You may live near the ocean, which can make you ineligible for a homeowners policy with the same company that writes your auto coverage. * You may have auto claims or tickets on your license that prohibit you from being eligible to bundle with the same company that writes your homeowners. * You may already have a bundle, and your insurance company decides that your home or auto is no longer a class of business they want to underwrite and issues a non-renewal for your entire package. In these examples, it will alleviate your stress and save valuable time if you are working with an independent insurance agent as they represent more than one insurance company and can offer you options quickly.