Many companies encourage you to bundle insurance policies like home and auto together for a discount. But is that always the best option? While bundling can save money and simplify your coverage, it’s not a one-size-fits-all solution. In this post, we’ll explore the pros and cons to help you decide.
What Does It Mean to Bundle Insurance?
Bundling insurance means purchasing two or more policies—commonly home and auto insurance—from the same carrier. In return, most insurers offer a multi-policy discount, which can range from 10% to 25%.
Why Bundling Insurance Can Be a Smart Move
1. You Get a Discount
Multi-policy discounts can lead to significant savings, especially when bundling high-premium policies.
2. Everything’s in One Place
Bundling means fewer companies to deal with, one bill to track, and a single renewal date.
3. Claims May Be Easier
In cases where both your auto and home are affected (think storm damage), a single insurer may simplify the claims process.
4. You Might Only Pay One Deductible
Some carriers offer a single-deductible benefit—if the same event damages both your home and car (like a tree falling during a storm), you may only have to pay one deductible instead of two.
Why It’s Not Always Best to Bundle Insurance
1. You Might Overpay
Even with discounts, a bundled quote might still be more expensive than shopping policies individually.
2. Coverage May Not Be Equal
One insurer may offer great auto insurance but weak homeowners coverage—or vice versa.
3. Less Flexibility
If you want to change one policy, you may lose your discount or face fees.
When Should You Shop Separately?
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Your home or auto has unique risks (prior claims, custom modifications, etc.)
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You qualify for a specialty program (e.g., military, low-mileage, or high-net-worth coverage)
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You’re looking for better coverage options, like extended replacement cost or accident forgiveness, only offered by a niche carrier
The Best Strategy: Compare Both
Bundling isn’t automatically the best or worst decision—it depends on your unique needs. The smartest move is to compare bundled vs. unbundled quotes, and look at both price and coverage.
An independent insurance agent can do that for you—saving you time while finding the best value.
Final Thoughts: Should You Bundle?
Bundling can simplify your insurance and save money—but don’t assume it’s always the best choice. Compare your options, consider your needs, and talk to a trusted advisor who can help you get it right.