5 Perks of Bundling Your Home and Auto Insurance – Forbes Advisor – Technologist

Finding individual plans for your home and auto is challenging enough, and bundling them into one policy can seem nearly impossible. If you don’t secure policies from the same insurer, you might overpay and miss out on potential savings.

Bundling your home and auto insurance isn’t just about convenience—it can often save you money, time and energy. While bundled plans can often lower your insurance premiums, consider the type of coverage you need before making a decision. Here’s a closer look at five reasons why bundling your home and auto insurance might be a good move for you.

1. Savings

The savings are the first and most notable perk of bundling your home and auto insurance. Most insurers offer a multiple-policy discount when you sign up for at least two of their policies. For example, customers who switch to Liberty Mutual and bundle their home and auto insurance could save $950 annually—about $79 per month. By bundling, you often reduce your insurance costs while potentially freeing up cash flow for other priorities.

2. Streamlined Payments

Another perk of combining your home and auto insurance is streamlined payments. Most households already juggle a long list of service providers each month. Bundling your insurance policies can help you cut the number of providers by at least one. You can often make both payments through a single online account, over the phone, by mail or autopay. This perk can make managing your bills easier and less time-consuming.

3. Convenient Account Management

Working with a single insurance company can also simplify your account management, which involves updating your account or policy. With an online user account, you can easily make changes, such as updating your address or coverage, adjusting your deductibles and downloading insurance cards for both policies. Having both policies under one account can make it more convenient to manage your insurance needs.

4. Single Point of Contact

Bundling your policies also gives you a single point of contact for questions and issues. You can take care of both policies with one call. Plus, as a customer with multiple products, you might benefit from additional discounts. For example, drivers who switch to Liberty Mutual might be eligible for more savings, including discounts for safe driving.

5. Familiar Claims Process

Every insurer handles claims differently, and the process often comes with a learning curve for policyholders. However, with a bundled policy, you only need to learn one system. While there are differences between the claims for different policy types, the process is often similar. For example, with Liberty Mutual, you can easily file auto and home insurance claims online straight from your account portal.

Considerations Before Bundling Home and Auto Insurance

Bundling home and auto insurance often makes sense for policyholders, but there are a few things to consider. For example, if you’re unhappy with an insurance provider, you’ll have multiple accounts tied up with them. However, you can usually switch to another provider anytime without facing sizeable cancellation fees—if any.

You should also evaluate the overall value of a bundled policy. While there may be a discount, you should compare the details, costs and coverage of separate and bundled policies to determine which one offers the best deal for your needs.

How to Bundle Your Home and Auto Insurance Policies

If you’re interested in bundling your home and auto insurance policies, here are four steps to go about it.

1. Begin by Reviewing Your Current Policies and Needs

The first step is to take inventory of your current home and auto insurance policies. If you don’t have one or both policies yet, consider the types and amounts of coverage you’ll need, such as:

• Premium cost: This is the total policy premium and monthly cost for your auto and home insurance.
• Coverage types: For your auto, consider bodily injury liability, uninsured motorist and comprehensive and collision coverages, in addition to options like rental reimbursement, loan/lease payoff, and roadside assistance. For your home, consider dwelling, personal property and liability and structural coverage.
• Coverage limits: Assess the amount of coverage for each coverage type, including the per-person and per-accident limits for auto and the maximum amount the insurer will pay to repair or rebuild your home in the event of a loss.
• Deductibles: Consider the deductible amount between coverage types in the event you make a claim on your auto or home.

All of these factors can play a role in determining the cost and value of a bundled home and auto policy and help you make an informed decision.

2. Shop Around for Bundles

Once you understand your current coverage or the coverage you’ll need, you can start shopping around for the best deal. Make a shortlist of insurers that offer home and auto insurance bundles and seem like good fits.

It’s helpful to look for providers that offer online quotes. For example, Liberty Mutual has a quick six-step online quoting system. You can get an instant policy quote after providing basic information about yourself, your home and your vehicles.

3. Compare Home and Auto Insurance Quotes

Once you’ve gathered a few home and auto insurance quotes, compare them against each other and your current policies, if you have them. Along with considering the premium and deductible costs, look into the finer coverage details like limits, deductibles and extra coverages. An insurer may offer you the lowest monthly premium, but that doesn’t always mean it’ll provide the coverage you need. Review policies in full to find the best overall value.

You can also consider an insurance company like Liberty Mutual, which has earned an “A” rating, considered excellent, from AM Best—a reputable global credit agency for the insurance market—based on its ability to meet ongoing insurance obligations. These ratings gauge how likely an insurer is to pay out your claims as promised.

4. Finalize Your Bundle

Once you find the best auto and home bundle for your unique situation, let the insurer know you want to move forward. You can often do this online, through a link in the insurer’s follow-up email or over the phone. From there, you’ll need to verify your information, agree to the policy terms and make your first premium payment. Policies can often go into effect as soon as the same day.

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