What to Know Before Bundling Auto and Home Insurance

The short answer

Bundling means buying two or more insurance policies from the same company. It can save you money, but you should always compare the total costs and coverage to make sure it is the best deal for you.

Should I just look for a discount?

Do not just look at the discount percent. Compare the total cost, payment plan, and fees. Look closely at the coverage limits and deductibles for all policies. A deductible is the amount you pay out of pocket before the insurance company pays. If you choose lower limits or higher deductibles, you might pay less now. However, you will pay more if you have a claim.

How do I check my policies?

Check your auto policy for drivers, vehicles, and liability. Liability is the money the insurance pays if you hurt someone or damage their property. Check your home policy for the value of your house and your personal items. Ask about things that are not covered, like floods.

Are the policies one big contract?

A bundle makes billing easier, but your policies are still separate contracts. A claim on one policy does not mean the other policy pays for it. Each policy follows its own rules.

What happens if I change one policy?

Life changes can affect your bundle. Selling a car or moving to a new home might change your price. Ask your agent if removing one policy will change the price or discount on the other one.

What is umbrella coverage?

You might want an umbrella policy for extra liability protection. This covers costs above what your other policies pay. Ask a licensed representative about these options.

How do I get ready to compare?

Gather all your current paperwork before you start. This includes your declarations pages, which are the summary pages of your insurance. Bring details about your home, your car, and your drivers. Accurate info helps you get a better comparison. Bundling is not right for everyone. It depends on your personal needs and the total cost.

What to do next

Gather your current policy documents. Talk to a licensed representative to compare your options. This article is educational and does not change or guarantee insurance coverage.