If you have both auto insurance and home insurance, your insurance agents may frequently extol the virtues of bundling both types of insurance into one package. Sure, it is the best way to go according to your agent, but do they really have your specific situation in mind when they tell you that? Below, you can read about both the advantages and disadvantages of bundling your home and auto insurance so that you can make your own informed decision.
Advantage: Save Money
Bundling your policies together will save you money. Bundling discounts are designed to encourage consumers to buy extra insurance products through the insurance company that they already have an established relationship with.
For example, maybe you already have vehicle insurance, but you are in the market for homeowner's coverage. In many cases, your insurance company will give you a discount on the existing vehicle policy if you are willing to buy the homeowner's policy from them as well. This is often cheaper than maintaining policies with two different companies.
Disadvantage: Potential Missed Deals
While your bundled insurance policy is usually a good financial deal at the time you get it, that could change at any time. Insurance prices vacillate often, just as any other prices do, and this means that you could potentially miss out on a great deal because you're locked in with a bundled policy.
If getting the very best deal on your insurance every month is important to you, you might want to avoid bundling your home and auto insurance. You may be able to do some careful comparisons that would yield an even better deal if insurance industry prices start to drop. Keep in mind that this type of price matching does take time and effort, even though it might save you money.
Advantage: Easy Payments
One of the big advantages of bundling is that it makes paying your premiums easier. By bundling, you will be paying one premium rather than two each month, and you won't have to deal with multiple insurance companies.
Your single payment to the insurance company each month will cover all the policies that you maintain with them. Many insurance providers offer automatic bank drafting to make it even easier to pay your premium directly from your bank account each month.
Disadvantage: Lack of Updates
Your insurance policy needs to change with you. When you make life changes like moving to a new home or changing your driving patterns, your insurance provider needs to be informed promptly. Dramatic changes like these can have an impact on your coverage, and a lack of updates could potentially lead to a lack of coverage.
Unfortunately, having a bundled home and auto insurance policy could potentially mean that you get into a routine of making automatic payments while forgetting to update the policy. Some people also imagine that it will be too much trouble to make changes to a bundled policy, and therefore neglect to do so.
If you are still not sure whether bundling your home and auto insurance is best for you, talk to your insurance agent. Ask for a recommendation based upon your personal needs and current insurance products to get the final answer on whether bundling is best! To learn more, contact a company like Keyes Insurance Services Inc. with any questions you have.Share