Buying auto insurance and renters insurance together as a bundle 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 homeowners 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 policyholders an average of 5%. If you're in the quoting process for renters and car insurance, have the below information on hand.
Renters insurance covers your personal liability, personal property (including theft protection and vandalism), additional living expenses (also known as loss of use), and medical payments to others. Most renters insurance policies will carry coverage limitations for high-value personal belongings such as jewelry, musical instruments, fine art, and guns. These items are sometimes valuable enough to exceed personal property coverage limits. If you own a particularly valuable piece of art or jewelry, look into an add-on coverage option to insure it at its full replacement cost.
While you should be able to make changes to your policy at any time, you can get the most accurate quote possible upfront 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? Typically it amounts to less than a 10% discount if you bundle with renters. Homeowners, on the other hand, enjoy the most savings when they bundle with auto insurance.
The second cheapest was USAA, an insurance carrier reserved for military members and their families. If you're not eligible for either Erie or USAA, look into GEICO, which costs about $9 more per month than USAA.
|Company||6-Month 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.
Bundling is a convenient way to manage all of your policies with one company — whether that be a renters policy or home insurance. Another perk is the discount you receive — depending on the savings, you may be able to offset the renters insurance cost with the right deal. As illustrated above, some companies offer steeper bundling discounts than others. Here are our tips on when and when not to bundle your policies.
Looking for a competitive renters insurance quote? Feel free to call our in-house insurance agency at 855-493-9138 to get a rate for renters coverage.
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 — which are not required by law — are designed to cover damage to your vehicle. But if your car 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 accident 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 insurance 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. Find the best renters insurance companies by consulting reviews and use resources from A.M. Best and J.D. Power to gauge insurance providers' financial strength and customer satisfaction.
The Zebra partners with Lemonade to deliver affordable renters insurance. Curious about how much you could save with a Lemonade policy? Click the button below to get started on a quote.
If you’re looking for more information on renters insurance and car insurance, explore the resources below:
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.
The 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.
Data may vary slightly throughout report due to rounding.