Buying car insurance and renters insurance together is a great way to save. Let's explore this popular option.
If you’ve ever gone through the car insurance quote process, you’ve probably been asked if you have renters or home insurance policy. Insurance companies ask this because they often offer discounted renters-and-car insurance bundles. Let’s dive into some of the best discounts for renters' and auto insurance bundling.
Bundling car insurance and renters insurance with the same company saves an average of 6%. If you're in the quoting process for renters and car insurance, have the below information on hand.
Most renters insurance policies will carry coverage limitations for high-value items such as jewelry, fine art, and guns. These items are sometimes valuable enough to exceed renters insurance limits. If you own a particularly valuable piece of art or jewelry, open an additional line of coverage to insure it.
While you should be able to make changes to your policy at any time, you can get the most accurate quote possible up front if you have this information from the start. Your multi-policy discount will be applied to your renters and car insurance policies as long as you maintain both with the same company. Below is a look at the average cost of a renters and car insurance bundle.
|Without Multi-Policy Discount||With Multi-Policy Discount||$ Savings|
Just how much can you expect to save via a multi-policy discount? According to our survey of rates from top insurance companies, Nationwide offers the cheapest car insurance discount when bundled with renters insurance.
|Company||Rate with Renters Insurance||% Savings|
These estimates are based on a general profile. This isn’t a renters-and-car insurance quote — the prices and discounts above apply only to auto insurance.
Now that we’ve outlined how to get car insurance as a renter, let’s go over some simple ways how to save.
It’s important to gauge your coverage needs. If you drive an older, paid-off vehicle worth less than $4,000, you probably don't need comprehensive or collision coverage. These policies — not required by law — are designed to cover damage to your vehicle. But if your vehicle isn’t worth much to begin with, you might end up paying for coverage you don't need.
You can determine the value of your vehicle through online resources such as Kelley Blue Book and NADA. If you need liability coverage but want to cut costs, consider raising your collision and comprehensive deductibles. By raising your deductible, you take on a greater amount of financial responsibility in the event of a claim and lower the premium on your personal auto policy.
While auto insurance is designed to protect your vehicle, you should only file a claim in a couple of scenarios:
The last one can be a little tricky to determine. Unless you have accident forgiveness built into your policy, every insurance company will raise your rates after an at-fault accident or collision claim. Because insurance companies believe you’re more likely to get into an accident in the future if you’ve had one previously, they will increase your rates to offset anticipated claims payouts.
If you’ve been in an at-fault and are unsure of whether to pay for the damage yourself, consider these steps.
A major benefit of maintaining renters and auto insurance policies with the same company is the discount. Here are some other standard discounts about which you should inquire.
While a multi-policy discount for your renters and car insurance is great, it’s only one of the ways you can cut car insurance costs. The easiest way to make sure you’re getting the best rate is to assess offerings from as many companies as possible. Because renters insurance tends to be priced consistently across companies, focus saving on your auto insurance policy first and foremost. Enter your zip code below to get started.
If you’re looking for more information on renters insurance and car insurance, explore the resources below:
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 sale metrics, according to Goodcarbadcar.net’s automakers’ data.
Data may vary slightly throughout report due to rounding.