Anyone who owns or leases a car must have car insurance. At the same time, anyone who owns or rents a home must have either homeowners or renter’s insurance. Most insurance companies that offer car insurance will also offer homeowners and renter’s insurance. Depending on your circumstances, it may be more advantageous for you to purchase your car and home insurance from the same company, as a bundled package, as opposed to individual purchases. Doing so may save you time, money, and some headaches should an incident occur. It is important to explore your options and then make your choice.

 

The Roommate Standpoint

Typically, most people will tell you that you will save money purchasing a bundle package for your home and car insurance needs. However, if you rent and have roommates, that may not be the smart choice. As renter’s, you and your roommates must carry renter’s insurance. However, you may wish to purchase a policy separate from your car insurance policies. Also, you may want to purchase a policy that binds each roommate equally. Therefore, you and your roommate(s) may purchase a policy together through an independent company. This will help prevent any one of you from getting the sole liability associated with filing a claim against an insurance policy. As a result, no one has less of a stake in keeping the property safe from harm and people on the property safe as well.

 

Effective Budgeting

If you are not a person who lives with an unrelated roommate, then you may find that bundling home and car insurance is the smart way to save money on insurance and get all the coverages you need for your home and car. The reality is, this bundling may help you effectively budget your expenses each month.

 

Effective budgeting is not simply about saving money. It is also about keeping track of finances, money in, and money out. One benefit to bundling your policies is that you will be sending one payment to one location for two products. You do not need to keep track of extra bill payments or companies to contact when an issue occurs.  In general, this makes life easier in an already busy world where we are constantly on the go.

 

Saving Money

Saving money is not always a given with bundling home and car insurance policies. The rule of thumb is that bundling policies is often less costly than holding two separate policies with two separate companies. However, this is not always the case. If there is a company that offers coverage for your home or car and an exponentially cheaper rate than another company, then bundling may not be a helpful option.

 

For instance, if Company A offers car insurance for $600 a year and homeowner’s insurance for $750 per year, and Company B offers car insurance for $500 per year and homeowners insurance for $950 per year, typically the bundle with either company will not be less than purchasing the car insurance from Company B and the homeowners insurance from Company A.

 

However, this is not typically the norm.Typically, bundling policies with one company will often be less expensive than buying separate policiesfrom separate companies. Generally, the one company offers a discount on the other policy you are bundling to generate the extra sale.

 

Bundling truly depends on your circumstances. If you are the typical homeowner, it is likely more cost-effective and budget-friendly to bundle your home and car insurance. However, do not assume blindly. Talk to your insurance provider to get quotes for both separate policies and a bundle to determine what your savings will be. If you are a renter with multiple roommates (or even one roommate),you may find it more beneficial to purchase renter’s and car insurance policies separately. This is not necessarily to save money. Instead, it can give you some confidence that all parties will share liability should a claim be filed against the policy.

 

To learn more about bundling home and car insurance, contact the ProtetiveAgency.com team at (877) 739-9367. Our licensed, friendly insurance team will be happy to answer any questions you have.