The Benefits of Bundling Insurance Policies
Bundling insurance can help you save money on coverage for everything from cars to boats to your home.
Adobe Stock
QuickTakes:
From coverage for your car to your home, insurance premiums can start to add up when you look at the full picture of all of your policies. To find opportunities for cost savings, it's possible to reduce your premium while maintaining protection by bundling insurance policies under a single provider.
Although the insurance bundles you qualify for will depend on your insurance carrier and applicable policies, combining the coverage of other assets with your car insurance will likely benefit your budget.
The Basics of Bundling Insurance
Bundling insurance refers to when you hold multiple types of vehicle and property insurance coverage under the same provider. While these policies are all still technically separate as they cover different assets, insurance providers will often offer multi-policy discounts for an insurance bundle. These discounts vary based on provider and bundled policies, but you could potentially save 5% a year.
Although you could increase your savings as you add more policies to your bundle, some insurance providers will only offer discounts on certain bundles. Be sure to check with an agent before making any changes to your policies that may not end up providing any additional benefit.
Insurance bundles can also make billing easier if you're currently paying multiple insurance providers for different policies. Bundling insurance simplifies billing by streamlining payments and allowing you to see a full picture of your overall coverage.
Bundling Your Other Vehicles Policies
If you're insuring a wide variety of vehicles, insurance bundles often extend to motorcycles and other modes of transport. Car and motorcycle insurance bundles could help you save up to 10% or more on your premium, depending on your carrier, while providing coverage from a single source. Other common bundles include an RV and car insurance bundle or even a boat and car insurance bundle, some of which providers could allow you to stack for additional savings.
Home and Car Insurance Bundles
Many insurance companies place an emphasis on their home and car insurance bundles because they cover what are likely two of your largest assets: your home and vehicle. These insurance bundles lead to hundreds of dollars in savings per year.
A few examples of potential savings from a home and auto bundle include:
- Progressive: Average of 5% savings on all bundles
- Nationwide: Up to 20% savings on home and auto bundles
- Allstate: Up to 25% savings on home and auto bundles
- Travelers: Up to 10% off car insurance when you bundle home insurance
Car and Renters Insurance Bundle
Even if you don't own a home, most insurance companies offer bundles for car and renters insurance. Since renters insurance is already relatively inexpensive compared to homeowners insurance, this bundle could be more of a benefit toward lowering your auto insurance premium.
What to Keep in Mind When Bundling
Although bundling your current car insurance with other policies may offer a number of cost-savings benefits, you could potentially get a better quote from another provider.
Other providers might also offer better multi-policy discounts than your current insurer, so it may be beneficial to shop around before committing to one carrier.
Some insurers also offer policy bundles through affiliated separate-but-connected insurance policies. This means that while your provider may offer you a bundle for your car and motorcycle insurance, you could end up dealing with multiple payments and companies.
