Bundling Your Auto and Renters Insurance

Renters insurance is already relatively cheap. Want to make it even cheaper? Bundle renters with your auto or life insurance for huge savings.

bundling renters and auto insurance

You might already know bundling insurance policies is a great way to save some money.

If not, you do now. Bundling insurance policies means buying more than one policy, like auto and home insurance, from the same company. It’s an easy way to lower your rates. It’s like a bulk buy discount.

But not everyone knows that you can also bundle your renters insurance. Most commonly, you can buy renters and auto insurance from the same company. It’s a surefire way to lower your rates.

How much can you save by bundling your renters insurance? How do you do it? And should you bundle it? This article covers those questions and more.

Why Does Bundling Renters Insurance and Auto Insurance Save You Money?

Insurance companies push customers to bundle or combine their insurance policies under one roof for many reasons. Most play a role in saving you money.

Bundling multiple insurance plans with one insurer boosts their bottom lines. To put it another way, they make more money if you buy multiple policies from them rather than from their competitors. And in return, they give you a discount.

Another reason insurers like bundling: it means less work for them. Instead of billing two different customers for two different policies, for example, insurers instead bill one customer for two policies. Also, it allows them to get to know you -- and other customers – better. In particular, it gives them greater access to your invaluable claims history.

Does Bundling Renters Insurance Always Save You Money?

Yes, you’ll almost always receive a discount if you buy more than one insurance plan from a single company.

But that doesn’t mean that discount is always better than what you’ll spend if you bought plans from different carriers.

In other words, bundling won’t always be your cheapest option, even with the discount. Consider this hypothetical: you’re going to bundle car and renters insurance with one company. The auto policy costs $100 per month, and the renters policy costs $30 per month. Your insurer offers you a 10 percent bundling discount. Instead of paying $130 per month, you’ll pay $117 per month if you bundle.

But what if another company sells a similar auto policy for $80 per month? Even if you add on the full $30 a month for the renters policy, you’re paying $110 total without bundling. That’s less than the original $117 with bundling.

So, before you make the move to bundle your renters insurance and auto insurance with your current company, shop around. Compare the discounts you’ll get for combining coverage under one carrier with what you’d pay if you bought them separately. Do this with multiple insurance companies. Yes, it takes time and patience, but you’ll be rewarded for both when it comes time to sign on the dotted line.

How Much Money Can You Save Bundling Renters Insurance and Car Insurance?

It’s impossible to say just how much money you’ll save by bundling your renters coverage with another kind of insurance.

Why? Because not only is every insurance company different, but every insurance plan is different, too.

What you pay for your renters and other insurance policies is sure to differ from what someone else pays for their policies due to things like:

  • How much coverage you buy
  • Any endorsements or floaters you add to your policy
  • Where you live
  • Your claims history

All that said, most companies will give you a discount of somewhere between 3 percent and 10 percent for your renters coverage if you bundle it with at least one other kind of insurance.

As for your auto coverage, you could receive a discount of between 5 percent and 20 percent or more if you bundle it with your renters insurance.

Travelers, for example, cuts five percent off your renters premium if you bundle with car insurance. You’ll get a separate discount for your car insurance – likely around 10 percent.  

Don’t take that as gospel, though. You might receive a bigger discount than that with a bit of digging.

Again, though, the size of the discount you’re offered here has a lot to do with your carrier.

Not matter what, you should expect that “the more products you bundle, the better [the] discount you can earn,” as American Family puts it.

Other Benefits for Bundling Renters Insurance

Although a lot of people get bundle insurance to save money, that’s not the only reason it’s beneficial.

Convenience is another reason. If you buy your renters insurance and car insurance policies from the same carrier, you’ll work with a single company (or agent) rather than two. You’ll have one monthly bill for one company, rather than two. And you won’t have to remember more than one username or password to access your accounts online.

Can You Bundle Renters Insurance with Other Kinds of Insurance and Save Money, too?

Yes, you can. Assuming your insurer allows it, of course.

When most people think of insurance bundling, they imagine combining auto and homeowners policies. Or they imagine auto and renters policies.

That’s not the full extent of what’s possible, though. Some companies let you bundle your renters coverage with life insurance, for example. Or they’ll let you bundle it with motorcycle or boat insurance, like Nationwide does.

You might even be able to combine your home and renters insurance plans under one roof, if you have a need for both.

Finally, it isn’t unusual for carriers to allow you to bundle renters insurance with umbrella coverage or riders.

How Do You Bundle Auto and Renters Insurance Coverage?

This one is simple.

If you’re shopping for insurance and comparing quotes from different companies, all you need to do is ask about bundling or combining plans.

Let’s say, for instance, you’ve got car insurance but you’re looking to buy a renters policy, too. In that case, all you need to do is pick up the phone, call the insurer, and ask them to add renters coverage to your account. (Although you’ll likely want to get a quote first, especially if price is important to you.)

You don’t even have to use a phone in this case. You also can go online, obtain a quote, and then buy the renters insurance that way.

And of course, all the above is even easier if you don’t yet have the insurance plans you want to combine. When you go to buy one type of policy, most carriers will ask if you want to bundle it with another.

Pros and Cons of Bundling Your Car Insurance and Renters Insurance Policies

Here are the main pros and cons associated with bundling insurance policies:

Pros

  • Companies give discounts when you buy more than one insurance policy from them. In other words, bundling saves you money.
  • Getting your car insurance and renters insurance coverage from the same company is convenient. You only have to deal with one agent. You don’t have to remember multiple due dates (for premium payments), usernames, or passwords. You should receive a single bill for all your plans. And you may deal with just one deductible for them as well.
  • When you have more than one insurance policy with a carrier, they’re less likely to drop you or cancel your coverage if you file too many claims.
  • You build a stronger relationship with your insurer when you bundle policies with them. And they get to know you and your needs better as a result.

Cons

  • People are less likely to shop around for better insurance rates after they bundle policies. Rather than compare quotes every six to 12 months, as experts recommend, they only do so after they a bad experience with their current carrier.
  • Some bundled insurance policies aren’t really bundled. To be more specific, they aren’t all owned or maintained by the company that sold them to you. For instance, an affiliate or third party may actually provide the renters coverage you got from your auto insurer. That’s not the worst thing in the world, but it could make bundling less convenient than it is in most other cases.
  • You might get less coverage than you bargained for when you bundle renters and other insurance policies. This is because a lot of people in this situation focus on the overall cost and little else.

What to Consider Before (or After) Bundling Your Renters Coverage

1. Will bundling insurance policies really save you the most money?

As mentioned earlier, bundling isn’t guaranteed to be the cheapest option. If the company you’re bundling with is more expensive than average to begin with, bundling won’t necessarily make a big difference. Shop around and compare policies from different companies to make sure you’re getting the best deal.

2. If you care more about convenience than cost, bundling is going to be your best bet.

There’s no question bundling makes buying and maintaining coverage more convenient than if you get them from separate carriers.

3. Ensure you aren’t sacrificing coverage for cost.

Don’t just focus on what you’ll pay for your bundled renters and other insurance policies. Look at the coverage they’ll provide you, too. If you skimp on the latter, you may pay for it when catastrophe strikes or when it comes time to file a claim.

4. Your options may be limited if you stick to smaller or regional insurers.

Not all insurance companies offer renters coverage. This is especially true when it comes to smaller or regional carriers. If your goal is to bundle a renters policy with one or more other kinds of insurance, you might have to focus on bigger insurers to make it happen.

5. Your options also may be limited if your situation is at all unique.

When does “unique” mean here? One example is if you live in a high-risk location. Maybe the city or state you call home is more prone to earthquakes or flooding than other areas. That might make it harder for you to find certain kinds of coverage. Or it may limit the discounts you receive for bundling them with other plans.

Want to learn more about flooding and renters insurance? Read our article about flood insurance for renters.

6. Don’t be shy about un-bundling your policies if combining them no longer saves you money.

Bundling insurance policies often is convenient. And it often saves you money, too. But you shouldn’t let either of those things keep you from shopping around and comparing quotes on a regular basis. (Every six to 12 months, according to most experts.) You also shouldn’t let them keep you from breaking up your “bundle” and buying policies from different companies if doing so will provide you with better coverage or save you even more money.

Should You Bundle Renters Insurance with Other Insurance?

Now that you know you can bundle renters and other insurance policies, you’re probably wondering if you should bundle them.

Unfortunately, only you can decide if combining coverage in this way is a good idea or not.

Having a hard time choosing between bundling and buying separate policies? Do the following:

  • Ask yourself: is cost more important to me, or convenience?
  • If cost is key for you, compare quotes from a few different insurance companies. Find out which one (or ones) will provide you the best coverage for the best price. And don’t forget--the “winner” here may be a single carrier that offers great bundle discounts, or it may be a few carriers that offer great deals on individual plans.
  • If convenience is key for you, focus on bundling or combining plans with a single company. Keep an eye on the discounts that’ll save you money, but don’t forget your coverage needs while doing so

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