Home and auto insurance bundles can get you a decent multi-policy discount with most insurance companies. If you have both a home and car to insure, one way to potentially save time and money is by purchasing both your home and auto insurance with the same company.<\/p>
In fact, shoppers can get a discount of 18%, on average, when bundling their home and auto policies, according to an analysis from NerdWallet on rates from four of the largest insurers.<\/p>
Buying your home and auto insurance from the same company is known as “bundling,” and it usually gives you a discount. Think of it as an easy and popular way to cut costs without cutting coverage.<\/p>
The good news is that bundling is pretty common. Many insurers offer the option to bundle multiple products together. Depending on your insurer, you may see bundling referred to as a multipolicy, multiline or multiproduct discount.<\/p>
If you bundle car and homeowners insurance, you may get benefits like:<\/p>
How much you can save when you bundle auto and home insurance depends on where you live and the company that insures you. However, not all companies or discounts may be available in your state, so check to see which option is best for you.<\/p>
USAA earns the highest financial strength rating available for insurance companies: an A++ from AM Best. While available nationwide, USAA\u2019s auto and homeowners insurance policies are only available to its members. <\/p>
Membership to USAA is reserved for qualified members of the military and their families. The insurer offers all of the standard coverages for its auto insurance policy, as well as common discounts such as for maintaining a clean driving record. The same goes for its homeowners’ insurance policies. Identity theft protection is also included, unlike some competitors.<\/p>
USAA’s standard homeowners insurance policy includes uniform coverage for active-duty and deployed service members. It also includes replacement cost coverage for personal belongings and the overall discounts offered aren’t as high compared to other competitors in our rating. <\/p>
That being said, USAA does offer a discount for military members, something not all insurers offer.<\/p>
Information on Amica\u2019s website states that policyholders can save up to 30% if they bundle their home and auto insurance. In addition to a generous discount, the company has an array of coverage options. Amica also receives fewer complaints from state regulators than expected for a company of its size.<\/p>
Homeowners who want additional coverage on top of Amica\u2019s standard home policy can buy the Platinum Choice package, which includes extended dwelling coverage and increased liability limits. Meanwhile, drivers can purchase extras like full glass coverage or prestige rental coverage, which covers up to $5,000 for a comparable rental car if your vehicle is in an accident.<\/p>
Bundling isn\u2019t the only discount Amica offers. Depending on your state, you could also save money by:<\/p>
Allstate offers standard coverage that\u2019s similar to what competitors offer for their auto and homeowners insurance policies. Some optional add-on coverage for auto insurance includes classic car insurance, roadside coverage, and rideshare insurance. Allstate’s homeowners’ insurance policy has several optional coverages, including identity protection plans, insurance against water backups, and coverage in case the homeowner needs to make additional repairs to meet building codes.<\/p>
One interesting coverage option for homeowners is Allstate\u2019s HostAdvantage home-sharing insurance. Policyholders will be protected if their belongings are stolen or damaged while there are renters in the home.<\/p>
While policyholders can file a claim and manage policies online through Allstate\u2019s app, applicants will need to call the insurer or work with an agent to purchase a policy. Plus, policies may cost more compared to other competitors, although Allstate does provide some discount opportunities, including bundling, that could lower premiums.<\/p>
With an A++ insurance rating from AM Best, State Farm offers many coverage options for both car and homeowners insurance policies. For instance, homeowners can purchase additional coverage for home businesses, sewer or drain backup, identity restoration protection, and increased limits for ordinance or law coverage.<\/p>
Applicants can qualify for a reduction on their premium when bundling home and auto, plus a whole slew of other discounts are available. These include savings for installing home-security devices, going claims-free for a set period of time, and being a loyal customer.<\/p>
Policyholders can take advantage of several other features including filing claims online, and a mobile app to view, modify and pay for their premiums. You can begin the quote process online, but applicants will need to work with a State Farm agent to purchase coverage.<\/p>
American Family says policyholders can save up to 23% when they bundle home and car insurance. The company offers strong customer service too, drawing fewer consumer complaints to state regulators than expected for an insurer of its size.<\/p>
In addition to standard car insurance coverage, you can also add Diminishing Deductibles to your policy. With this feature, American Family will reduce your deductible \u2014 the amount of a claim you\u2019re responsible for \u2014 by $100 for each year you drive safely.<\/p>
Diminishing Deductibles are also available for homeowners insurance, along with a variety of other add-ons. For example, you can buy coverage for water damage from backed-up sewers and drains, or for major appliances that break down.<\/p>
Aside from a bundling discount, you may be eligible for savings if you:<\/p>
Country Financial is another great option for bundling. The company has strong customer satisfaction, with far fewer complaints to state regulators than expected for a company of its size. It offers a wide range of home insurance coverage options depending on the policy you choose. <\/p>
Some policies cover issues like countertop burns or a power surge that damages electronics. And, in most states, the company offers guaranteed replacement cost coverage, which has no limits on how much it will pay for new construction materials and labor to rebuild your home.<\/p>
Auto insurance coverage options include new car replacement, which can pay for a new vehicle after an accident even if yours is a couple of years old. You can also add vehicle rental and trip interruption, which reimburses up to $800 for a rental car if you\u2019re in an accident while away from home. It also covers some transportation, lodging and meal expenses if you\u2019re in an accident more than 100 miles away from home.<\/p>
The company offers a variety of discounts. Depending on your state, savings may be available for things like:<\/p>
Bundling home and auto insurance policies with one company has advantages, but it isn\u2019t always the best path to take. Here are factors to consider.<\/p>
Bundling home and car insurance together may save you money, but not in all cases. To decide if bundling makes sense for you, compare the quotes for separate home and auto policies to quotes for bundled policies. If separate policies are cheaper than a bundled rate, there\u2019s no reason to buy them together.<\/p>
Bundling will probably save you the most money if your home insurance is more expensive than your auto insurance. In most cases, pricier policies get steeper discounts. And because home insurance policies typically cost more than car insurance, discounts on homeowners insurance tend to be higher.<\/p>
But if you have violations on your driving record, poor credit, or live in a state with high car insurance rates, your auto insurance could easily be the more expensive policy. In this case, the savings from choosing cheap auto insurance could dwarf a 20% discount on a bundled home policy. <\/p>
It all just comes down to your unique situation.<\/p>
If you feel that bundling home and auto insurance is the perfect option for you, take these steps to maximize savings:<\/p>