Can You Get a Discount for Bundling Renters Insurance and Car Insurance Together?
Last Updated on March 28, 2020
You have renters insurance for your apartment and you have car insurance for your car. Can you get a discount on both insurance policies by buying from the same company?
Today, we’re explaining everything you need to know about saving money by bundling renters insurance and car insurance policies together.
Yes, Bundling Renters and Car Insurance Together is (Usually) Cheaper
If your insurance company offers both renters and car insurance, then you should be able to bundle both policies together to save money.
Many insurance companies offer a range of property and casualty insurance products, including home, auto, renters, boat, and RV insurance, among other products. Some insurers also offer life insurance or health insurance.
You can bundle most types of insurance policies together to save money. Discounts vary widely among companies. Some companies offer just a 2% to 5% discount for bundling insurance policies together, for example, while other companies offer discounts of up to 20%.
Bundling auto and renters insurance isn’t guaranteed to be cheaper. Sometimes, it’s cheaper to get two separate policies from two different companies. Generally, however, you can save money by bundling renters and auto insurance together.
Let’s look at some of the pros and cons of bundling renters and car insurance together.
Advantages of Bundling Renters and Car Insurance Together
There are three huge advantages of bundling renters and car insurance together:
Convenience: Having multiple insurance policies with one company is a smart thing to do. It helps you save money. You can avoid dealing with multiple insurance companies and multiple billing systems. You don’t have to have multiple logins and passwords. You don’t need to remember multiple premium due dates or billing dates.
Cost Savings: Companies offer discounts of anywhere from 2% to 20% when bundling auto and renters insurance together. That means you could potentially save hundreds of dollars per year just by switching your insurance products to the same company. You might save 10% off your car insurance and 20% off your renters insurance just for making the switch, for example.
Cheaper Deductibles: Without bundling renters and auto insurance together, you’d have to file two separate claims from two separate insurers for both policies. When these policies are bundled together, however, you might just have to pay one cheaper deductible. This isn’t available from all insurers, and it may only apply in cases where you need to make both claims simultaneously, but it can be a crucial benefit nonetheless.
Disadvantages of Bundling Renters and Car Insurance Together
It’s not always in your best interest to bundle renters and car insurance together. Some of the disadvantages of bundling the two policies together include:
It Could Reduce Your Insurance Coverage: Bundling can save money upfront, but it could also lower your coverage limits. You might be paying great rates for an excellent renters insurance plan today, for example, only to switch to a bundled plan with less coverage and lower limits. Double-check your paperwork when making the switch. Some insurers can be sneaky about these lower limits.
It Could Change your Deductibles and Other Options: At the same time, check your car insurance policy’s deductibles and other payment options. After bundling your policies together, you may have a significantly higher deductible, for example, which reduces the chances you’ll ever make a claim.
It’s Not Always Cheaper: Your insurance company might give you a 20% discount for bundling auto and renters insurance together. However, that doesn’t mean you’re paying the cheapest rates. Some insurance companies are more expensive than others even with a discount.
It Makes it Harder to Compare and Switch: Insurance companies love to offer bundled deals to customers because it prevents them from shopping around. It’s easy to switch your auto insurance to a new company, for example, but it’s harder to switch your auto and renters insurance. You’re discouraged from shopping around. Additionally, certain apartment complexes might require that you purchase renters insurance from a specific company. That company might not offer auto insurance.
Other Plan Restrictions: There may be other hidden restrictions inside your bundled plan. An ordinary auto insurance policy may allow you to repair your vehicle at the shop of your choice, for example. A bundled policy may require you to use a specific repair shop. Additionally, certain states prohibit bundling certain types of insurance together. Florida, for example, does not allow hurricane insurance to be bundled with other insurance policies.
Ultimately, as long as you check the insurance paperwork and understand exactly how your bundled policy works, you should have no problem combining auto and renters insurance together.
Compare Auto and Renters Insurance Quotes Online Today
If you live in an apartment and drive a car, take a few minutes to compare auto and renters insurance quotes online today. A few minutes of searching could save you hundreds of dollars on insurance.
Don’t assume that bundling policies together is the cheapest option. Sometimes, it’s cheaper to get two individual policies from two different companies.
By comparing insurance online today, you can find the best auto insurance and renters insurance bundle for your unique needs and budget.