How much can you save by bundling your auto insurance? | Car insurance
Insurers tout the economic benefits of auto insurance bundling in advertisements and on their websites. But is policy consolidation worth it? This guide will walk you through the process of deciding whether or not to bundle your car insurance.
The biggest advantage of grouping is the potential savings for doing so. Another advantage is the convenience of managing all of your insurance policies on the same website or by calling the same customer service number. Even if you don’t bundle your auto insurance with another type of coverage, you may still be able to get a discount for listing multiple vehicles on the same auto policy.
The biggest disadvantage of bundling your car insurance is that you may not save as much. In fact, it’s entirely possible that you’ll pay less overall if you don’t bundle policies, especially if you have a collectible or hard-to-insure vehicle.
Best home and auto insurance packages of 2022
The average car insurance policy costs $1,442 per yearaccording to our research, it is therefore easy to see the interest in (potentially) reducing your premium thanks to bundling.
Insurance companies advertise discounts of 5% to 20% or more to combine home and auto policies. But there’s no guarantee that your multi-policy discount will be that big. In other words, you will only know if bundling is right for you by doing your research and getting quotes.
To maximize your savings, the Insurance Information Institute (III) recommends contacting at least three insurance companies. Request quotes for car insurance and another type of policy (like home insurance) with and without the bundled discount.
Insurers typically advertise discounts when you bundle your auto and renters or home insurance, but you may be able to save additional money by bundling other policies, including boat, motorcycle, or life insurance. Keep in mind that auto insurance policy bundling options vary by company and state, so it’s a good idea to check with an insurer or agent to learn about your options. Here’s a breakdown of the types of insurance you can typically combine with a car insurance policy. Some companies may offer additional bundling options.
Yes. All of the providers in our ranking of the best auto insurance companies offer the option of bundling home or renters coverage with your auto protection. Advertised savings for combining auto and home insurance range from 5% to 25% or more. Discounts for bundling car and renter policies are not as generous as car/owner packages. Average savings range from 3% to 15%. Keep in mind that your actual savings could be more or less.
Even if you don’t opt for multi-policy discounts, you can still save money by shopping around and checking out our guide to the cheapest car insurance companies. USAA offers the lowest auto premiums in our study. With USAA, a driver with a clean record can expect to pay a premium of around $1,000, according to our data. Coverage is only available to USAA members, but if you’re not eligible, consider Geico, which offers the second lowest auto insurance rates. The average rate for a Geico insured with a clean record is $1,148. Your actual rate may vary depending on where you live, your driving record, the provider you choose, and your coverage rates, among other factors.
Erie Insurance has the cheapest home insurance rates, according to our research, with average monthly premiums of $98. Erie advertises potential savings of 16% to 25% for bundling home and auto coverage and also offers a multi-car discount. The only downside is that Erie only offers coverage in 14 states. If Erie doesn’t offer coverage where you live, consider Liberty Mutual. It is the second cheapest company in our ranking, with an average premium of $113.
If you’re a renter, shopping for coverage is just as important as it is for a landlord. Nationwide has the cheapest renters insurance rates, according to our research, with an average premium of around $13. Plus, Nationwide’s basic coverage includes changes you’ve made to your rental and protection in the event your credit cards are stolen.
For more information on car insurance, see the following guides:
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For more information on other types of insurance, see the following guides:
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