4 Benefits of Bundling Your Auto and Homeowners Insurance

Do you have your auto insurance with one carrier and your home insurance with another? If you do, you are not alone. You may have your policies with two separate companies for a variety of reasons. Sometimes it just has not been convenient to move them all to the same carrier. But if you have ever wondered what the benefits would be to bundle them together, here are a few of the benefits to consider. 

1. One Agent and Company

Have you ever wondered what would happen if you had an accident that involved both your home and your vehicle? For example:

• Your vehicle might catch fire when parked in your garage
• You could put your car in drive instead of reverse and drive through your garage wall
• A hurricane or tornado might bring pieces of your home crashing down on your car

Who would pay? Such an accident could become a logistical nightmare when attempting to figure out coverage. Once your claims are paid, one insurance company could go after the other to recoup the monies they paid out. This process is known as subrogation.

You will probably have minimal, if anything, to do during the subrogation process, even though they are acting in your stead. While subrogation is taking place, you may receive or be cc'd on correspondence between the two companies. 

When both of your policies are with the same company, it provides much more ease for answering such questions and policy management. There is only one company and often one agent to deal with. The company will work out any coverage issues when both policies are involved.

If you have only one agent and agency, the professional can have a more comprehensive oversight of your coverage. This oversight can help them fine-tune your policies by identifying areas of insufficient and excessive coverage. 

2. Creates a Lower Risk for the Company

Several moving violations or an accident may cause your insurance company to increase your rates or drop your coverage. Because of your driving, you now present an increased risk to the company. Depending on your violations, and the state you live in, these can stay on your record for 2 to 10 years, although most insurance companies only look at the past 3 to 5 years to determine rates. 

If you bundle your policies with the same company, you provide them more business. They may view you as a lower risk than you would be as a stand-alone auto customer, especially if you have not had any homeowner's claims. 

3. Single Deductible

Your homeowners' and your auto insurance both have deductibles. This means if you use one or the other, you must pay that amount before your policy will kick in. If your policies are bundled, you may only have to pay one deductible and not the other in some situations.

For example, if a lightning strike damaged both your house and car, your insurance company would probably only require you to pay the higher deductible out of the two, but this can vary based on your specific situation.

4. Savings

The actual amount you may save by bundling your insurance products will vary based on several things. Some of these include your insurance needs, where you live, and what you drive.

Most companies will offer a discount when you bundle two or more products. The average consumer saves approximately 16.1% when bundling their auto and homeowners' insurance, although this varies between people and companies. 

In addition to your car and home insurance, you can include other insurance products in your bundle. Illinois Insurance Center in Chicago, IL, can help you identify insurance products to meet all of your needs. Give us a call so we can review your current policies and find ways to provide you with a better insurance experience.