Is bundling home and auto the best option? Find the best policy for you.
Outside of your own health insurance, most people have two insurable interests: your vehicle and your residence. Regardless if you own or rent these interests, you're more than likely to insure them — potentially through the same company. While there are a lot of reasons to bundle your insurance policies, there are also some scenarios in which it’s not a good idea. Let’s explore the do’s and don’ts of bundling homeowners and car insurance policies.
|Company||Average Annual Car Insurance Premium with Renters Insurance||% Savings|
If you're looking for a cheap car insurance quote as a renter, consider Nationwide, offering an average six-month premium of $608. Find out more about how to save on car insurance as a renter.
|Company||Condo owner||% Savings|
Nationwide is the cheapest company for auto insurance with a condo owners policy attached to it. On average, you'd pay $631 per a typical six-month policy.
Homeowners tend to pay the least for car insurance for a couple of reasons. Firstly, homeowners are seen as more financially responsible and file less claims than renters. Thus, they're cheaper clients. If you're a homeowner looking to bundle car insurance policies, you should consider Nationwide. Learn more about car insurance for homeowners.
Please note: because of the complicated nature of homeowner’s, condo, and renter insurance, we were only able to quote for auto insurance with a "yes" or "no" bundled option. Meaning, the car insurance quotes only factor the fact they had a premium to bundle and thus these rates are only for car insurance policies.
As you can see, with a bundled policy, Nationwide is the cheapest company to get car insurance from with our user profile. However, Nationwide doesn’t offer the greatest discount. In fact, they’re pretty middle of the pack in terms of bundling discounts. Companies like Farmers and Allstate, while not the cheapest overall premium, offer a higher percentage of savings for bundling your homeowner’s insurance policy.
While the appeal of a discount is ever-present, under some circumstances, you shouldn't bundle your insurance policies.
Because homeowners and car insurance companies are backed by different risk analyzers, they view risks differently. For example, some home insurance companies will either charge you more — or flat out deny coverage — based on your dog’s breed. While your dog’s breed has absolutely nothing to do with your car insurance, your dog is covered under your homeowners (or renters or condo owners) insurance via your liability policy.
If you switch your homeowners policy from a company that doesn’t exclude or limit your liability coverage simply because you have a German Shepherd, to one that does, you may be hurting yourself in the long run for a 5-10% discount.
This isn’t limited to dogs. If you have a trampoline, pool, or other potentially risky belonging, you should ask potential insurers to learn about potential limitations on your liability coverage (or any other type of coverage) before bundling.
If the value of premium you save by bundling isn't greater than what another company would offer without a discount, it’s not worth it. Some insurance agents will quote you a bundling discount if you’re trying to leave their company, but often times there’s still a cheaper insurance policy elsewhere. Even with a 5 to 10% discount, certain insurers' rates are still more expensive than other companies' standard premiums.
While Allstate and Farmers offer large discounts for bundling, their average premiums still exceed that of Nationwide — with or without a renter’s discount — for our user profile. So, even if you're set to save a couple bucks by bundling, you might want to compare other car insurance companies' offerings.
Despite these negatives, there are some reasons to bundle your homeowner’s and car insurance.
Outside of the financial incentive of bundling homeowners and car insurance policies, there are some additional benefits of keeping it in the family. Let’s explore.
What’s worse than dealing with an insurance company? Dealing with two insurance companies. By bundling, you reduce the number of insurance companies with which you need to deal. While your billing calendars may not align, you'll limit your exposure to multiple agents, customer service reps, and other common insurance-related hassles.
If you’re in the market for homeowners and car insurance together, keep these tips in mind:
Between September and December 2017, The Zebra conducted comprehensive auto insurance pricing analysis using its proprietary quote engine, comprising data from insurance rating platforms and public rate filings. The Zebra examined nearly 53 million rates to explore trends for specific auto insurance rating factors across all United States zip codes, averaged by state, including Washington, DC.
Analysis used a consistent base profile for the insured driver: a 30-year-old single male driving a 2013 Honda Accord EX with a good driving history and coverage limits of $50,000 bodily injury liability per person/$100,000 bodily injury liability per accident/$50,000 property damage liability per accident with a $500 deductible for comprehensive and collision. For coverage level data, optional coverage (that must be rejected in writing) is included where applicable, including uninsured motorist coverage and personal injury protection.
National property and casualty losses information is from the Insurance Information Institute and the NOAA National Centers for Environmental Information U.S. Billion-Dollar Weather and Climate Disasters report.
For vehicle make and model data, analysis referenced the most popular vehicles in the U.S. by 2016 year-end sales according to Goodcarbadcar.net’s automakers’ data.
Finally, some rate data may vary slightly throughout report based on rounding.
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