Could you $ave by Bundling Policies?

Purchasing your home and auto insurance from
the same carrier can be a very lucrative decision.

It is not uncommon for insurers to offer multi-policy discounts, or the discounts offered to customers who bundle two or more types of coverage, of up to 25 percent. Such generous discounts can substantially reduce your overall insurance expenses. On the other hand, an auto and home insurance bundle is not always the right decisions. In certain circumstances, you might actually be better off keeping your policies with separate insurance carriers.

Benefits of the Auto Home Insurance Bundle

By far, the most compelling advantage to a car and home insurance package is the potential discount. The average multi-line, or multi-policy discount, is about 20 percent for most major carriers. Earning the discount also takes relatively little effort - all you have to do is either purchase home and car insurance at the same time or move a policy to another carrier.

Additionally, a home auto insurance bundle can make policy management and premium payment easier. Typically, insurers allow customers with multiple policies to make one simple monthly or annual payment and choose a common deductible. Keeping track of your premiums and coverage levels is much more convenient as a result.

Drawbacks of Home and Car Insurance Bundles

Certainly, bundling home and auto insurance is not without its disadvantages. For one, despite the generous multi-policy discount, you still might end up paying more for auto and home insurance if you bundle than if you keep your coverage separate. This may happen when your carrier's multi-policy discount is not large enough to outweigh the lower premiums you might enjoy with a separate carrier. So, it's important that you calculate your total annual home and car insurance expenses under all possible scenarios, bundle or no bundle.