Should You Bundle Your Auto and Home Insurance? 6 Pros and Cons

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Combining insurance policies together is often touted as a way to save money, and bundles which include both car cover and home insurance are increasingly common.

Before you take the plunge, it’s worth weighing up whether or not this is actually a wise move. Let’s look at how such a combination is achievable, and the positive and negative aspects it involves.

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Getting quotes for bundled car and home insurance online

A good starting point is to visit a site like Cheapinsurance.com where you can quickly receive quotes for individual policies as well as bundled cover.

This is sensible because it lets you see how prices compare, and also helps you identify the insurers that actually offer these deals.

Discounts are available

The first benefit of bundled insurance offers is that they can be less expensive than splashing out on separate policies for your car and your home.

The size of the discount depends on many factors, but it could be anything from five to 25 percent. Just be warned that it may only apply for a fixed period, after which an increase is inevitable.

Price changes can come unexpectedly

If you are someone who buys insurance with a single provider and sticks with it because the thought of making a change is unbearable, then a combined policy might not be right for you.

This is because price increases will eventually occur, as they do with all insurance, and in this context they could be far greater than you’d find with distinct policies for vehicles and properties.

Insurers will alert you to impending increases, of course, but unless you take action, automatic renewals could kick in and leave you out of pocket.

Convenience is assured

The daunting prospect of dealing with insurance-related administration duties can actually be minimized if you put all of your eggs in one basket.

Bundle deals are handled by just one company, so when you need to make a claim after an accident, you’ll be dealing with the same people whether it is for a car-related issue or a domestic dilemma.

Likewise as the premium price will cover every aspect of the package, it is easier to track your spending and keep tabs on your budget each month.

Inclusions can get confusing

The bigger and more all-encompassing an insurance policy becomes, the harder it is for customers to know exactly what is covered and what is not.

This goes double in the case of auto and home insurance bundles, and it is therefore much more likely that you will be confused by the specific details of your package, which could lead to issues if you need to make a claim.

For some, it will be simpler to understand if these two policies are kept separate. There are some insurers who do a good job of being transparent about inclusions and exclusions, but this is by no means universal.

Competition is fierce

In spite of the pricing issues mentioned earlier, there is plenty of competition in this segment of the insurance market, which means that providers are incentivized to offer good deals to snare new customers, and also to keep existing customers onboard with perks and discounts.

Comparison is even more important in this context, as sifting through the plethora of prospective offers is not easy if you do it manually.

Research is essential

Lastly, the need for research is part and parcel of getting the best bundle deal on auto and home insurance, and even if you do leverage comparison tools, this takes time to achieve successfully.

Even so, it is very much worth spending an hour each year looking for the best priced insurance, whether you choose separate policies or get combined cover.

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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Simi
4 months ago

Home insurance is super important, a lot of people overlook it and try to skimp on it. But I guess bundling auto insurance and home insurance is one good way to get some modest to drastic savings – thanks for the info!

Surajit
3 months ago

If you tell me to choose anyone from both insurance, I choose first home insurance because home to most important factor of a human life, and it prevents all damages from various unexpected moments, but I can’t ignore the auto insurance, because you have a vehicle then you must purchase an auto insurance policy for safety purpose. So, last thing I want to say that your blog is really informative.

Last edited 3 months ago by Surajit
Denial
Denial
3 months ago

Thanks for the great tips. I recently had a lot of questions about insurance, and began to explore different options. https://justaskans.com/ was a great source to answer my questions