Does Bundling You Car and Home Insurance Really Save You Money

While insurance is considered a necessary evil by most people, it is nevertheless a critical component to protecting you as well as your home and auto. While it is something that is only used now and then, most people are glad to have it when it is needed most, such as after a car accident, fire, or natural disaster that damages one’s home. In recent years, more and more insurance companies have started tempting customers with the offer to bundle their home and auto insurance into one package. While this can be convenient, it may also offer you the chance to save substantially on how much you pay annually. If you are considering this option but still have questions as to whether or not this actually saves you money, here are some important tips you will want to remember.

Shop Around

First and foremost, always shop around for insurance prior to deciding you will bundle your car and home insurance. By doing so, you can compare rates and various offers from a multitude of insurance companies. Whether you do this online or by visiting a local independent insurance agent in your town or city, you will be able to get a much better idea of what may be available to you. Once you decide on a company, always check to see if they will offer additional discounts to get you as a new customer. If they want you badly enough, chances are this will happen.

Be Careful of Overpaying

While you may think bundling auto and home insurance always results in large savings, that may not always be the case. Sometimes, a company will bundle auto and home insurance in an effort to discourage customers from price shopping with other companies. Once they have customers convinced they are saving substantially on their premiums, they may begin gradually adding increases on a regular basis. If the customer is not paying attention and fails to notice the changes, they can unwittingly find themselves actually paying more for their insurance over the long-term. Therefore, even if you do bundle your auto and home insurance, always make it a practice to regularly check your premiums for any increases, and don’t be afraid to speak with your insurer. Once you do, they may be willing to do away with the increases.

Circumstances May Negate Savings

While insurance rates for home insurance usually do not vary widely, the same cannot be said for auto insurance. Often far more expensive than home insurance, it is possible various circumstances you may have will negate any savings you think you are getting through bundling your insurance. For example, if you have had auto accidents or traffic tickets for various offenses, even the cheapest auto insurance policy may not offset the savings you will receive on your home insurance. Also, if you have bad credit or live in a state where car insurance rates are quite high, you may not save as much money as you originally thought.

Beware of Third-Party Insurance Companies

In some situations, your insurance company will use the services of a third-party insurance company when offering you either auto or home insurance. While this may or may not save you money, one thing it will do is eliminate the convenience of working with only one insurer. In addition, you may lose a level of control over your policy and how much you will be paying. Thus, prior to agreeing to a bundle package of your insurance, always make sure the policies being offered to you are done so with your primary insurance company.

Since you naturally want to save as much money as possible on your insurance premiums, make sure you take the time needed to thoroughly research your options. By doing so, you will be able to make an informed decision that works best for you, rather than making a costly mistake along the way.

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