We’ve all seen the ads. “Just bundle home and auto insurance to save money,” the announcer states with excitement. But does bundling coverages really save money? The answer is not always. 

The Benefits of Bundling Insurance

There are many reasons why bundling policies is a good idea. These include:

• Discounts on Premiums
• Combined (Lower) Deductible
• One Agent
• One App
• Less Likely to be Dropped from Coverage

Bundled coverage usually results in the best pricing if you have good value in your home but not a top-of-the-line car, because you will get a deeper discount on your homeowners insurance. If you have a luxury car, the benefits aren’t as good because the insurance on the vehicle is much higher than with a standard car. 

The Problems with Bundling Insurance

While bundling offers many conveniences, most people choose this option because of savings, but sometimes these benefits are short lived or non-existent. The most common problems are:

• Rate Creep. Just because your rate starts low, doesn’t mean that it will stay there. You need to periodically check, especially car insurance, to see if it’s reasonable compared to the market.
• Cost. Sometimes purchasing your insurance policies from different providers can save you money. Part of this equation is the value of your home and car. and the other is that so many providers sell only auto insurance so you can often get better rates through them. 
• Truly Bundled? Just because a policy says its bundled doesn’t mean that it is. For example, some auto insurance companies use an affiliated company for home insurance, locking you into a provider you didn’t choose and requiring that you pay two insurance bills instead of one.

Before You Bundle Your Insurance

Before you choose to bundle your home and auto insurance, you should:

• Compare quotes for bundled policies with an independent insurance company, such as Alliance, to get prices and options from multiple companies. If you work with agents who sell exclusively for one company, they can only offer discounts available with that insurer.
• Determine if an insurer uses a third-party insurance company for either policy. You may still save money but you lose the convenience because you will in fact be working with two insurance companies. This may be a good option, but it’s best to know upfront what you’re in for.
• Shop for insurance at least annually to assure that you have the right coverage for the best price. Ask for quotes, both bundled and separate, and compare them to what you are currently paying. 

Selecting the right home and auto policies can be a challenge, and researching and comparing bundled versus unbundled options makes this task even harder. The good news is that you don’t have to do this alone. Alliance is an independent insurance agency that represents the best insurance companies in Florida. We know insurance and we can present you with a variety of bundled and unbundled insurance options. With Alliance, you have a partner in selecting the right coverage today and evaluating new policies in the future.