Understanding Insurance Terminology

Understanding Insurance Terminology

Should You Bundle Home And Auto Insurance? How To Decide

by Vilma Maki

Are you considering bundling your home and auto insurance into one package from the same insurer? This can be a great financial advantage as well as making things simpler. But it might not always be the best choice. To help you get the best deal possible without sacrificing quality, here are a few steps to take.

1. Shop Around.

A discount for bundling insurance policies under one roof is understandably attractive. But don't assume it's automatically the best price you can get. After finding out what the bundled price will be, take the time to shop around to see how it compares to individual policies from other reputable carriers. 

2. Check the Carriers.

Sometimes, a bundle might only be a bundle on the surface. Some of the simplicity of the bundled package is lost if you end up with multiple billings and different insurers to deal with whenever you have a concern. While this may not be a game-changer if you're just looking for a good price, you should know in advance if you're working with a single company or multiples. 

3. Ask About Deductibles.

One of the relatively unknown perks of bundled policies is that you may also have a bundled deductible. If you insure three family cars under one policy, for instance, and a hailstorm hits them all in your driveway, you might pay three separate deductibles or you might only pay one. If the deductible comes as one package deal, the savings could potentially be even more than just lower premiums. 

4. Consider Your Experience.

Insuring your home and vehicles shouldn't be solely about money savings. Do you have strong feelings about the service, reliability, or claim operations of any particular insurer? If so, don't be afraid to factor this into your decision. You want peace of mind, after all, if you have to deal with an emergency. Strong feelings about an insurer can either rule out some carriers or override the desire to switch for money savings.  

5. Look for Other Discounts.

Whether or not you opt to bundle policies, don't forget to look for other sources of discounts. This could include senior discounts, low mileage policies, veterans discounts, rates with going to a driving school, or benefits from the installation of safety equipment. You can often stack discounts, leading to the real best deal. 

By examining the issue from these various angles, you can find the best route to good insurance at a price you can afford. Want to learn more about any factors you might use to decide? Start by meeting with an experienced insurance agent in your area today.  


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.