Virtually every insurance carrier in the market provides a discount in the neighborhood of 5%-25% when bundling your auto and home insurance policies with them. Although auto and home insurance, and auto and renters insurance are by far the most advertised bundles, insurance carriers provide multi-policy discounts for virtually all types of insurance coverages. As long as you place your multiple insurance policies with the same carrier, you can expect to receive some level of discounts.
Should You Bundle Home And Auto Insurance?
Bundling multiple insurance policies with the same carrier is not as cut and dry as one would think. Of course everyone wants to save money, but bundling doesn’t always yield savings in the long run. Make sure to review the benefits and costs of bundling before you ultimately make the decision.
Benefits
  • Potential discount of 5%-25%.
  • Ease of use; having multiple insurance policies with one carrier centralizes all communication, which saves you a lot of time.
  • Potential for one deductible / claim.
  • Reduces the chances your insurer will drop you if you file claims.
Costs
  • Once the carrier has secured your business, they tend to gradually ‘creep’ rates up over the long term, with the understanding that there exist inherent switching costs that prevent customers from moving business. Thus, over the long term you could end up paying more for your insurance policies.
  • Some carriers do not underwrite multiple lines of insurance. As a result, they may farm out bundled policies to affiliates, essentially alleviating the convenience of communicating with one carrier for multiple insurance policies.
Bundling Recommendation
  • Check if the bundling comes from a third party carrier. Because even if you save money, you may still need to spend time managing separate policies.
  • Review your bundling policy periodically to ensure you always have the best price and coverage.
  • Utilize independent insurance agents and digital insurance comparison sites like EINSURANCE.com to compare quotes for bundled policies from several insurers.

How To Cancel Your Insurance And Bundle With Other Insurers?
Send your current insurance company a written cancellation letter to cancel their service, and make sure you are reimbursed whatever paid premium you have left regarding their policy. Check out our Sample Cancellation Letter to help you with this step. Also, remember to identify which insurance carrier you want to switch to before cancelling your current service, so you prevent an insurance coverage gap.
Things To Think About
Whether you choose to bundle your auto and homeowners insurance policies, or perhaps other insurance policies you carry, make sure you treat the decision process just as you did when you originally chose which insurance carrier to place business with. Not only should you compare pricing and coverages for bundled policies between carriers, but also make sure you compare them separately as well. Do not assume that simply because you are bundling insurance policies, you’ll automatically save in the long run.
Bundling may take a bit of upfront research and time, but trust us, it’ll be worth it in the long run. Good luck bundling, and make sure you compare rates and coverages here at EINSURANCE!