That’s not necessarily the best deal

Car and Home Insurance Bondage – Buying both insurance policies from the same carrier will save you money and simplify your insurance contracts and bill management.

However, car and home insurance bundles are not necessarily the best deal. In some cases, it is cheaper to buy policies from separate companies. Or, that’s the only option.

The only way to know if you can save money by combining your home with your car insurance and saving your car insurance is to shop and compare.

Bunding means purchasing multiple policies from a single carrier. Many auto insurance companies will give you a break to bundling into multi-policy discounts.

The most common is the auto and home insurance bundle, but carriers also offer discounts to buy other types of coverage, such as car and tenant insurance and car and life insurance. Some carriers also offer similar discounts to guarantee multiple cars.

learn more: How a bundle of car and tenant insurance will save you a lot

In some cases, housing and auto insurance bonds can save you more than 10%, said Diane Delaney, executive director of the Association of Private Risk Management, a non-profit insurance trade agency, in an email.

However, there is no guarantee.

“The savings depend on your insurance plan, the state you live in, and your carrier,” she said.

Given all the variables, insurance companies don’t advertise accurate savings, but say it’s possible to save a certain percentage or dollar amount.

Below are examples of discount bondage from the nation’s largest insurance company. Please note that discounts are not available in all states.

• AllState: Up to 25%

• farmers: Over 10%

• GEICO: They don’t advertise estimated savings. (GEICO will not underwrite home insurance, but we will offer a multi-policy discount if you purchase car insurance through a GEICO insurance agent that sells car insurance from other carriers from GEICO and home insurance.)

• Liberty Mutual: Up to $950

• Nationwide: Up to 15%

• progressive: The average advertising savings vary. Progressive sells home insurance provided by a network of companies.

• State Farm: Up to 17%

• Travelers: Rather than advertise the estimated savings, it advertises multiple bundle options.

• USAA: Up to 10%

The bondage of a house and a car is not for everyone

Despite the discount, bundling has been declining in recent years.

According to a survey by data and analytics company JD Power, of car insurance consumers who own homes, 58% bundled car and home insurance from 71% in 2016. The downward trend began before the pandemic and accelerated in 2022.

“Ultimately, consumers are trying to save on car and home insurance in light of historic rate rises in recent years,” Stephen J. Crewdson, senior director of JD Power’s global insurance group, said in an email. “They sometimes, their best deal is to split their policies into multiple carriers rather than a more traditional savings approach through bundles.”

learn more: Auto insurance premiums are rising. Here are 4 reasons and 11 reasons are saved.

Usage-based insurance (UBI) growth also had an impact.

“If consumers can save on car insurance with UBI insurance and get homeowners insurance and save on their insurance at a minimum or near premium, they can save more than bundled their insurance with the same insurance company,” Crudson said.

learn more: How driver usage-based insurance works

Additionally, some consumers have dropped coverage as they struggled to find affordable insurance. Crewdson said a study by JD Power found that the number of uninsured drivers has increased over the past few years.

Erika Tortorici, principal and founder of Optimum Insurance Solutions, an independent insurance agent in Hamilton, Massachusetts, sometimes in interviews, can make more economical meaning by keeping your policies separate.

For example, heavy cars claim history, and teenage drivers on policy increase the cost of car insurance. Your home insurance company may not offer the best price in your car coverage, even with bundle discounts.

read more: How to Find Affordable Auto Insurance for Your Teenagers

And if you live in an area where there is high risk of a hurricane, flood, wildfire or other catastrophe, you may need to buy home insurance from a specialized airline, Delaney said. “This could make the bundle unrealistic or unavailable.”

Another case where bundling may not work is because of the luxury real estate.

“Luxury clients with luxury assets, such as classic cars and over-the-water vacation facilities, require specialized careers that provide coverage tailored to their specific needs, making the bundle less beneficial,” Delaney says.

learn more: Classic car insurance covers – and not

Follow these tips to get the best car insurance coverage at the best prices.

Understand what you need

Determine the amount and type of car and home insurance you need. This includes the selection of deductible amounts. This is the amount you pay from your pocket to repair your home or car. A large deduction means a lower premium. Please select the amount you can afford to pay if you make a claim.

“By understanding this clearly before or during your shopping, you can make more informed coverage decisions and find policies that match your budget,” Delaney said.

learn more: Things you need to know about car insurance deductions

Compare car and home insurance prices for multiple companies, without bundled or without.

“To ensure you get the best price, make sure the total price from one insurance company is lower than purchasing coverage separately from different companies,” the Insurance Information Institute advises on its website.

You can purchase coverage in several different ways. Directly from a company, through an agent representing a single company, or an independent agent representing multiple companies.

“If you’re working for (independent) agents, they’ll do that shopping for you,” Tortorisi said.

Independent agents can advise on what to bundle, and are especially useful for homeowners with unique needs, such as high-value properties and high-risk neighborhood housing, Delaney said. “They can coordinate their policies to provide the most comprehensive protection.”

However, note that independent agents represent multiple companies, but not all of the companies there, so you can also pay to shop for yourself.

Get all the discounts you qualify for. Bundle rings are one of many on offer.

learn more: How to get all the best car insurance discounts

A company that cannot sell one type of coverage, such as home insurance, may offer a discount on car insurance if it indicates that it has received home insurance coverage elsewhere. It’s not harmful to ask.

We do a financial inspection once a year to ensure that your car and home insurance will continue to withstand your needs. Next, compare prices and get a quote to choose the company (or company) that offers the best deals and services.