If you're looking for a way to reduce your auto insurance rates or get cheaper renters insurance, bundling the two may be a great way to go. When you bundle your renters and car insurance policies together, you can get discounts on both that may save you a decent chunk of money. While a bundle can offer good savings, you'll want to make sure you're not sacrificing coverage in order to get it.
This article will cover:
How bundling auto and renters insurance works
Bundling insurance involves buying more than one policy, such as auto and renters insurance, from the same provider. Having the two policies together with one company gives discounts to each one, offering more overall savings.
You can buy both policies at the same time, or you can add one after the other. Depending on the insurance company where you get coverage, our data shows you can save 3% to 10% on your yearly renters insurance premium and 5% to 20% on annual auto insurance rates when you bundle.
Pros and cons of bundling car and renters insurance
The discount factor of bundling auto and renters insurance policies is the main benefit, but it shouldn't be taken as the only point of consideration. There are both potential advantages and drawbacks to bundling, depending on your needs. Consider the following points:
Advantages of bundling auto and renters insurance
- Save money: We found that the average cost of renters insurance is $120 to $264 a year. Average minimum auto insurance premiums are $641 a year. If you find the right insurance provider, you can save 10% on your renters insurance and 20% on auto insurance. This means that you can potentially knock your overall renters insurance costs down to nothing if you find the right annual premiums for both.
- Convenience: Having bundled insurance also means dealing with only one insurer for payments and claims. You can have only one bill and payment due date, cutting back on a lot of hassle.
Drawbacks of bundling car and renters insurance
- Less likelihood of comparing quotes: Having your auto and renters insurance bundled may reduce the chances of you periodically shopping around for a new quote for either policy. We recommend that you compare quotes from multiple insurers shortly before your auto or renters insurance expiration date to make sure you're getting the best coverage at the best price.
- It may not actually be cheaper: It is wholly possible to find cheaper quotes for auto and renters insurance from separate providers than what a bundle could provide. For example, say you find a bundle with auto insurance at $100 a month and renters insurance at $30 a month with a 10% discount. This gives you a total premium of $117 a month instead of $130.
Now, say you find one company offering the same auto insurance coverage at $80 a month, and another offering renters insurance at $30 a month. That comes out to $110 a month. You wind up paying less between the two companies. This is why it's good to compare both bundled and separate policy quotes when looking for car and renters insurance.
How do I bundle auto and renters insurance?
Bundling a renters and auto insurance policy is simple. Simply put, you just need to buy two insurance policies from the same insurer. It can be an insurer you already have one policy with, or you can start fresh with a new insurer. If you go with an insurer with which you already have car or renters insurance, it's easy to add a second policy.
Get quotes for renters and auto insurance bundles.
Regardless of whether you go with a new company or one you already have a policy with, you'll need to gather some info.
When you're buying the auto insurance portion of the bundle, the provider will need the following personal information:
- Your name, address and date of birth.
- Current car insurance provider.
- Insurance history.
- Ticket, accident and DUI histories.
- The same information for family members on the policy.
They will also need information about the vehicles being covered, such as:
- Year, make and model.
- Date of purchase.
- Name of covered vehicle's registered owner.
After that, you'll select your coverages, along with the desired auto insurance limits you want in the bundle.
When applying for the renters insurance portion of the bundle, you will use a lot of the same information, minus the vehicle and driving history portions. You'll also need an estimate of your personal property's value. You may be asked about other personal factors, such as employment status and whether or not you have a dog.
Be careful when deciding to change your auto insurance policy. If you leave your current insurance company to get new auto coverage before your policy expiration date, there may be a cancellation fee. More importantly, make sure you purchase the bundle before you cancel your old auto insurance to avoid a lapse in coverage.
Companies with auto and renters insurance bundles
Below is a list of some of the insurance companies that offer auto and renters insurance bundles. Insurance companies offer their policy options at different costs in different states, so make sure you compare the coverage limits each company offers, not just the rates:
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