If you have any concern for you own wellbeing, then it’s generally good advice to have both automotive and renters insurance. In most states it is mandatory to carry car insurance for the safety of both yourself and other drivers. Insurance for your rental property however is not. Though, it is generally considered a good idea to make sure you’re covered in the event of something unfortunate. These can both be on the pricey side, but the good news is that you can save money with a car and renters insurance bundle. Almost all of the major insurance providers offer this service, and along with it comes a three to ten percent discount for bundling your policies.
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How to Set Up a Car and Renters Insurance Bundle
This is actually quite easy to do. In fact, it’s standard practice when insurance companies sign you up for one to offer their bundle deal. This is because it increases the value of the customer to them, which means they can offer a good deal of money off the price.
If you already have one or the other, simply give your insurance agency a call and ask if they offer a car and renters insurance bundle. They’ll be more than happy to assist you. If on the other hand you have neither car or rental coverage, then the good news is you have many options to pick from. Just shop out either one and ask what kind of discount they provide for bundling.
The following companies will offer a car and renters insurance bundle:
· American Family
· Auto Owners
|· Erie Insurance
· Liberty Mutual
· State Auto
· State Farm
· The Hartford / AARP
These companies cover the vast majority of the United states, and are the insurance agencies for the bulk of the American people. So the chances are that either you are already insured by one of them, or you will be soon. It’s important to note that smaller companies may not offer a care and renters insurance bundle. Should you find yourself insured by one of those, then make sure to give them your 30 days notice. This will ensure that you don’t have a lapse in coverage, and see to it that you aren’t going to charged for the service that you no longer need.
Make sure to shop around, there are plenty of ways to save on money car insurance, and if you find a great deal then you could actually lose money by bundling.
Is Bundling something you should do?
Before you go sinking yourself into a new policy make sure that you know all the reasons and downsides to getting a bundle discount.
You might pay only one deductable
In the event of damage to your property, you are going to have to pay a deductable. Let’s say there’s a nasty storm brewing outside your home and it causes a tree to fall. It hits both your rental and you car. If you have split policies then you are going to have to pay the deductable on each one individually.
On the other hand if you have a car and renters insurance bundle, then you’ll be happy to know that the policy only has one deductable.
You could save money
Bundle usually offer a significant discount, but because many companies vary on price, you’re not always guaranteed to get the lowest possible price. It’s often the case that having two insurance providers will net you a total savings. So trick yourself into thinking it’s the only way.
Be sure you don’t reduce coverage
It’s all too common to just look at the total cost and think that you are getting a great deal, however you need to be careful. Getting a car and renters insurance bundle may sound like a good idea, and it may even be cheaper, but you could lose coverage. If you are concerned with this factor (and you should be) then make sure you have enough coverage with this insurance calculator.
Don’t let your coverage lapse
Don’t be too hasty to call up your insurance provider and cancel should you get a better deal. If you allow your insurance to lapse then you’ll find the rates for both auto and home insurance have gone up. If you don’t have insurance for over a month then you’ll be shocked that your prices have leapt up by 29%! And even if it hasn’t been a full month you are going to be rudely awakened by and 8% hike.
Beware cancelation fees
Many of the large providers don’t have fees for canceling your service early. However that’s not to say that they all don’t, Esurance for example does charge a fee for early termination. If that’s the case then you’ll have to wait for your policy to expire before you switch, unless you are willing to part with the money.
Your provider will be more lenient
If you have a car and renters insurance bundle, then the issuer is going to be significantly more accommodating. Say for example you have multiple claims in a row, which does happen from time to time. When you have more than one policy, you are significantly more valuable to the insurance provider than if you just had the one. This means that the total cost they are willing to pay before dropping you as a client is significantly higher.
Also, as a side note, more valuable customers tend to get treated nicer, which is a bonus all on it’s onw.
A few more things to consider:
Why do companies offer bundle discounts?
According to J.D. Power customers who received bundles were considerably more satisfied with their insurance providers, than when they purchased from separate providers. Obviously the more customer satisfaction they are able to generate, the more likely they are to keep clients.
Did you know? New clients cost 10 times as much to acquire
You don’t think about it when you are shopping, but just imagine the time, energy, and money it takes for insurance companies to acquire new clientele. It’s a substantial investment, so when it comes to keeping customers, they are willing to bend over backwards to avoid having to attract new ones. Of course, they can only bend so far.
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The bottom line:
Go out and get a few quotes. It shouldn’t take long for you to determine whether or not you are going to save money for the same service. If going with two separate companies significantly lowers the price then by all means, skip the bundle. Although if the advantages and price of a bundle are more appealing to you, then you know what decision to make. And should the price be almost the same, then the convenience of only having one bill, and one company to deal with, may just be what make bundling an attractive option for you.