Should you bundle Home and Auto insurance? (Yes and no.)
To bundle or not to bundle, that is the question. Okay, at least in insurance circles.
You may have heard that you can save money by bundling both important coverages together. That seems to make sense, right? You’ve made a home for yourself, filled it with your favorite gadgets, treasures and memories … and acquired some nice wheels too. Why not protect what you’ve built by letting one company take care of it all?
The short answer is, you may feel at home … but you could be taken for a ride.
Here’s a quick guide to the pros and cons of bundling:
THE UP SIDE
Savings: You could save up to 20% if you bundle Home and Auto insurance. Add Life insurance, and your savings may increase even more. Plus you could save money down the road if you have to make a claim involving several coverage types. Let’s say your house, car, motorcycle and boat are all damaged in one big mishap. (Hey, you're okay, and that's what matters.) Some policy bundles will require that you pay only one deductible instead of 2, 3 or more.
Convenience: Your time is valuable. And dealing with only one insurer instead of two or more could help you save lots of it. (Full disclosure: our friendly licensed agents can save you even more time by doing your insurance shopping for you.) Bundling also creates an easier-to-manage budget with a single renewal date and just one bill to pay.
Confidence: If you already feel good about your insurer, it makes sense to stick with them. Knowing you have a proven relationship with a single company who’s protecting what matters can bring you greater peace of mind. And here’s another confidence-booster: “bundlers” are less likely to be dropped by their insurer.
THE DOWN SIDE
Specialization: You may have high ticket items you want to insure on either your Auto or Home policy – like an antique car or valuable art. An insurer who specializes in these things can usually give you a better deal and better coverage. But if you bundle with someone who doesn’t, you could end up paying more for your toys, which will drive up the overall price tag.
Missed opportunity: The convenience of bundling can lead to “out of sight, out of mind.” If your insurer nudges your premium up at renewal time, you might not shop around for a better deal. In addition, your insurance needs may change along the way, and you shouldn’t assume your one carrier will always be the right option. It’s a good idea to regularly review the policy or policies you have.
Deceptive savings: Bundling discounts vary from carrier to carrier – from 5 to 20%. Let’s say one insurer discounts your $1000 bill down to $900 because you bundled. Here’s the catch: your cost might have been $750 if you’d gone with two different insurers. That’s why it’s a good idea to work with an independent, unbiased broker with plenty of carrier options. Because brokers don’t sell their own plans, they can show you the best path for you.
This is where Mylo comes in. Call our friendly licensed agents to find out whether you can benefit from bundling top-rated Home and Auto insurance together. If not, we can still find you the best coverage at the best price.Let's Talk!
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