Most people who have a home and a vehicle have insurance for both things. In many cases, auto insurance agents may urge their clients to take advantage of package deals for the two types of coverage. These deals, commonly called bundling, do have some advantages, but they may also have downside as well. Read on to answer the three most burning bundle questions.
Does Bundling Really Save Money?
In many cases, bundling your car insurance and home insurance together will save some money. The insurance company views bundling as a way to reward customers who buy all their insurance products from them, so they will often give a discount when you purchase a second insurance product.
For example, if you already have an auto insurance policy and you just bought a home, you will need to buy homeowner's insurance. Your insurance company will probably offer you a discount to buy that new policy from them, as well. That discount can be a significant one: Up to 30 percent with some insurance companies, although this varies by company.
Answer? In the vast majority of cases, yes.
Is Bundling the Best Deal Long Term?
Bundling your auto insurance and homeowner's insurance together is a money saver - but it may not be the very best deal for the long term. Insurance prices constantly move up and down, so buying in at a bundle price may keep you from finding even better deals later on.
However, finding better deals can take a lot of time and effort. It means that you'd have to constantly do insurance price comparisons to make sure you get the very best deals. Unless you have plenty of time to spend on these comparisons, you may just have to resign yourself to the fact that you're getting a good deal with bundling...even if it's not necessarily the very best deal at the moment.
Answer? Not necessarily, but it's probably worth doing anyway.
Will Bundling Make Your Life Easier?
For most people, bundling car insurance and homeowner's insurance helps them simplify their life. Instead of paying two different insurance bills every month, you only have to pay one. There is no need to keep up with two different due dates with a bundle, either. To make your life even easier, many insurance companies offer automatic bill pay for their bundling customers. This means that the insurance premium for both policies is removed from your bank account every month like clockwork - no need to put a bill in the mail or make payment over the phone.
Answer? Yes, bundling can make your life easier.
If you're still not certain if bundling your car insurance and homeowner's policy together will work for you, talk to your agent. Explain your concerns and see if they can create the perfect insurance solution for you. Visit http://www.unitedsecurityagency.com for more information.