What Discount Should I Look For When Buying Auto and Homeowners Insurance?

Mar 25, 2020 | Business Insurance, Personal Insurance

Having a house and a car to pay for needs a huge amount of money. And aside from paying for mortgage, there are also fees for the maintenance and of course insurance. A homeowners insurance and renters insurance ( in case if you are renting)  is required by most homeowners associations. The same goes for car insurance. Car insurance is required by almost every State in the US. However, the coverages depend on each State. Therefore, more often than not you already have a home and car insurance for quite some time before you even think of bundling. And you surely thought of this option because you want to save money.  Well, who doesn’t want to save right? That’s why we will check everything that we can do to save a penny. Good thing is, we have the option for that. Having your home and auto insurance in a bundle can save you up to 25% on their annual insurance premiums depending on the state you reside in. That is the best discount you can have in bundling your home and auto insurance under one company. But of course, this option only works with people who need it.  It means that before you bundle your home and auto insurance you must know first if you can benefit from it. Try to calculate how much you are paying for your car auto and home insurance with a separate company. Review your policies and discounts. Then talk to a trusted insurance agent and ask for a quotation if you want to bundle with them. If you find that bundling will work for you, then you might want to consider that option. 

Combining your auto and home insurance under one insurer gets you a solid discount called Multi-policy or Companion Discount. One of the best examples of how convenient it is to have both of your car and home insurance under one roof is this. Let’s say one of your light posts outside your house accidentally fell on your car. Instead of you filling a claim separately in your homeowners insurance and car insurance. You just need to make a single filing for both if they are bundled. You may just need to pay for a single deductible as well.  Imagine what less of a hassle that could be. Instead of processing two claims with two different companies, and talking to different people you just have to deal with one insurer. 

Having your auto and home insurance in one insurance company when your house is considered as High-Risk-Home is a smart move. A high-risk-home is when you live in an area where

  • There are high records of theft or break-ins especially in urban areas
  • If you live in the Midwest which is a tornado-prone area
  • Western California which is earthquake and wildfire-prone area
  • Hurricanes prone area in Florida 
  • Flood prone area like the Gulf Coast

There are 14 records of natural disasters that took place last year. That costs $91 billion according to the National Oceanic and Atmospheric Administration. Thousands of properties have been destroyed. Since natural disaster is inevitable, having an insurance provider is a must.  Most insurance companies have a tendency to not approve any renewal of service if the customer lives in a high-risk prone area. This is not a surprising fact. Business is all about money and if you are not going to contribute to their sales why have you in the first place. This is where having both of your house and car insurance in one company can be profitable for them.  It’s a win-win situation. 

Also, even when you live in an old house that already filed a number of claims in the past. You might not be the one who filed that claim. It may be the old owner of the house.  But the thing is, insurance companies have a database where they can find all the filed claims in the past. It is called the CLUE database. If happens that your house has a list of claims by you or the previous owners. It will be considered a high-risk-home. That alone can be a big challenge for you to find a homeowners insurance company that is willing to accept you. But if you are about to bundle your car and home insurance with one insurer, you might get a bigger chance to get an insurance company.

Here are the other pros in bundling your auto and homeowners insurance.

  • Insurance agents can easily review your home and auto coverage in one sitting. And if you want to make changes, you can manage them in the exact same portal. 
  • You just need to find one efficient insurance agent to handle your home and auto insurance. Let’s be realistic. It’s not that easy to find someone who you can fully trust and rely on. That’s why having just one agent to work with about your insurance is not just a time saver but saves you from unnecessary headaches. 
  • If in any case that you need to file claims in your auto or home insurance, having your policies in one company has a higher chance that your Insurance company will keep you. Insurance companies are less likely to cancel your insurance if you have your home and auto insurance with them.  If you live in an area that is prone to different perils like bush fires, tornado, hail storms, and even crime. Some insurance companies might cancel their service. But if a customer has bundled insurance with them they will likely keep them because they will surely don’t want to lose two insurances all at once.  
  • If you bundle home and auto insurance policies you can get up to 10% discount on your car insurance.
  • Bundling can save you more money if your home insurance is expensive and your car insurance is cheap. 
  • Bundling can save you time and effort as well.  Filing a claim can be a hassle, especially for busy parents. But if you have your insurance under one roof,  filing for a claim is way easier.
  • Having single deductibles for both. Most insurance companies offer this.  If you have your home and auto insurance bundled, you will have one deductible that applies to both insurances. 

Moreover, bundled discounts may vary by state and company. But wherever you live having your auto and home insurance in a bundle can save you money. The record shows that customers who bundled their insurance are more likely to renew and file fewer claims. And again depending on the insurance company, you may be able to align the effective dates and renewal of the policies and even combine your billing statements. That alone is already a time saver. 

Do you have any questions regarding Auto Insurance and Homeowners’ Insurance? Contact us and we’ll get back to you right away!