Your car and home are valuable assets which require having a good Homeowners Insurance Cover. In modern times, most insurance companies have introduced bundled insurance policies where you can insure both the home and the car under one policy to enjoy convenient discounts.
Here are the tips on how you can bundle an insurance policy, how to determine its appropriateness, and the best bundling discounts available.
The best auto and home insurance bundle
The best bundle is the one with huge discounts on top of the fairest price for the two policies. The client needs to do due diligence to ensure that the prices of both policies are fair because if one policy is extremely high it would render the discounts useless.
You also need to compare insurance quotes from different insurance companies to identify the best bundle.
Is it good to bundle your car and home insurance?
The home and auto policies should be bundled if:
The combination of the policies is less expensive than the current policies.
There is no cheaper combination in separate companies
The home risk level is high
You want to establish a better relationship with the insurance company
You should not bundle the policies if the price of the two policies will be higher than separate policies at different insurance companies.
In the event that the bundle require you to move to another company, it is good to watch on cancellation fees and potential coverage lapses. Cancellation fees may end up making the bundle expensive in the long run.
Benefits of insurance bundling
It creates convenience because you are paying for the two policies at the same company.
It is beneficial to bundle your car and home if you can’t find a company to insure the home with a high-risk level.
If you already have an auto policy with a company, you may be enticed to take homeowner insurance despite the risks.
Having multiple policies is more secure since the insurance company is less likely to drop you.
According to surveys, customers with bundled policies are more satisfied than those without.
How to bundle auto and home policies
The two can be bundled when applying for a quote for either of the insurance policies. Most of the times, at the end of the quote process, the insurer will always ask if you wish to combine it with a homeowner’s policy.
How to cancel a policy properly and bundle with another company
It is recommended that you give the car and homeowners insurance companies a 30 days’ written notice of cancellation.
The notice will make them stop billing you once the 30 days elapses and eliminate any confusion. Improper cancellation will create a policy gap which is costly even if it is less than 30 days.
When you inform the insurance company of the intentions to cancel the policy, you should ensure you have another company in place which you want to bundle with.
An insurance bundle is beneficial as it lowers the cost of insuring the car and the house. However, it should be properly done to avoid mistakes which could be costly. If there are cancellations to be done, they should be done properly to avoid cancellation fees. An insurance bundle should be lower than the cost of the two combined policies.