![Budgets](/getmedia/77a50b65-d716-46c4-b502-ec60cdb749ec/Bundling.jpg)
For the majority of American citizens with insurance, home and auto policies are an unavoidable part of their annual budget. These two types of coverages are essential, but that doesn't mean they have to break your bank account every month. One smart way you can cut down on premiums is by bundling both home and auto coverage through a brokerage like Goosehead that offers several mix and match options. It's a simple approach, yet highly effective in reducing costs.
Bundling is recommended by most insurance professionals because doing so will typically result in significant savings on one or both of the policies. A Bundling Discount, sometimes called a Companion Policy Discount, can easily qualify you for savings of up to 20% on your home and auto insurance. Additional benefits to bunding are:
- Simplicity - Having all of your insurance policies in one brokerage is a surefire way to make buying and managing your insurance policies a lot simpler. Think about the number of conversations and touchpoints that are required to maintain insurance. You have to speak to an agent to purchase the policy or make changes, you have to make payments each month or year depending on your plan, and at some point, you are bound to have questions that you may have to call in to have answered. Having one central point of contact that can access both your home and auto insurance can cut the time you spend on these tasks in half since all the info lies in one place.
- Expanded Coverage Options - Some companies will offer perks to clients who bundle their home and auto insurance. This can include things like a single deductible for claims that involve both the home and auto policy, or even options to choose lower deductibles for folks who bundle. Overall, insurance companies prefer to have your home and auto insurance together, so they will usually try to make it worth your while.
- Full Disclosure For Your Insurance Agent - Your insurance agent can do the best job at protecting you and your family if they know the full scope of your insurance needs. Having your agent in the loop on the coverages, premiums, benefits, etc. of both policies will make it less likely that you are left with gaps in your coverage.
- Independent Agents - Independent Insurance Agents are agents who do not represent a single insurance company. This means that they can shop around for you to find the best option. These agents will be able to shop with your best interest in mind and focus on finding policies that work well together. They may find home and auto insurance policies with the same company, or they may be able to mix and match by finding policies with companies that play well together and offer inclusive bundling discounts.
- Focus on Total Cost - Don’t fall for the trap of simply choosing the best-priced company for your auto insurance and the best-priced company for your home insurance. This may seem like a good idea, but over time, you may end up paying more in total. Look at the overall price you will be paying annually for home and auto insurance and choose the best bundle price.
- Always Shop the Bundle - Insurance premiums typically change each renewal, and this triggers a lot of people to search for a different insurance company. If you experience a surge in premium, it makes sense to shop around, but be sure to shop for a new bundle as opposed to shopping for a single line. So if you decide to switch your auto insurance to a different company, know that if you have a bundle discount on the home, that will drop off since it is no longer bundled. If your auto insurance premium increases by $400 per year, reach out to your agent to try and find a new home and auto bundle that will give you a lower total cost.
Finding an insurance bundle doesn't always mean using the same insurance carrier for both home and auto. Our agents at Goosehead can find you the best policy combination for your needs.
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The contents of this article are for informational purposes only. You should not act or refrain from acting based on this information without first consulting a Goosehead licensed agent at service@goosehead.com. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided "as is." Goosehead makes no representation that this content is error-free.