How To Bundle Renters and Auto Insurance
Insurance bundling, also known as a multi-policy discount, is a common way to save on insurance policies. This guide reviews insurance bundling to help you understand how it works and how to bundle your policies.
Key Takeaways
- Bundling your renters insurance policy can help you save money on your premium.
- Compare insurance bundle quotes from several companies to find the best price and coverage.
- Insurance bundling could make it more difficult to compare policies or switch companies later on.
When you buy multiple insurance policies from an insurance company, you are engaging in insurance bundling. Also known as a multi-policy discount, insurance bundling can help you save on your premiums, and it allows you to manage your insurance policies in one convenient location.
Insurance bundling can benefit both you and the insurance company, as it helps you save money and keeps your insurance policies with one insurer. Before bundling your insurance, be sure to shop around and compare policies to ensure you’re getting the best premium and coverage.
Here are a few steps you can take to bundle your policies:
- Obtain quotes: Get multiple quotes from different insurers to find the best premium. Start by speaking with your current auto insurer to see if they offer insurance bundling discounts. Additionally, consider working with an independent insurance agent, as they can help you compare various quotes and coverage options.
- Weigh your options: Compare coverage and prices to determine whether it is worth it to bundle. Will you actually be saving money with the bundling discount? Additionally, verify whether both policies are underwritten by the same insurer. If your insurer sells either policy through a third-party insurer, then you may not get the convenience of working with one company.
- Sign up: After determining which insurer you want to work with, based on pricing, coverages, and convenience, speak with your agent to finalize your policy details. You’ll then pay your first premium to begin coverage.
Bundling insurance policies can save you money compared to purchasing two separate policies from the same insurer. However, the best way to determine your savings is to get quotes from multiple insurers and review the details of each policy.
“You should review the price of each policy before deciding to bundle. However, the most important factor is the total cost of ownership or TCO, which is the final, combined price of the policies,” said Marty Ellingsworth, President of Salt Creek Analytics.
“Shop around with brands you trust and compare the total costs with and without bundling. Ultimately, only a comparison of the final dollar amount (TCO) will tell you if the bundle offers the best value. These days, getting on and off board with the admin overhead is much easier, so the convenience of a single company shouldn’t prevent you from seeking the lowest overall price,” said Ellingsworth.
Bundling renters insurance with another policy can be worth it if it lowers your premiums. But shop around to ensure you’re getting the best deal.
Bundling your insurance policies can also provide convenience by consolidating your bills, allowing you to pay both premiums at the same time. You can access both policies in one place, and you may qualify for a combined deductible. For example, if an incident occurs that requires you to file a claim on both your renters and car insurance policies, you may only have to pay the higher of the two deductibles rather than both.
All of the insurers in our study of the best renters insurance companies offer insurance bundling, which includes the following companies: