Whether you are a long-time owner, recent buyer, or are just beginning your search for a house, one of the most important responsibilities of owning a home is properly insuring it. When it comes to homeowners insurance, the options and types of coverage are endless. As you weigh policy benefits against the cost of coverage, how do you ensure you are getting the most bang for your buck? If only there were a way to simplify the process, all the while maximizing your savings and finding the coverage you need. Continue reading to learn more about simplified insurance options and how purchasing your car and home insurance from the same company could save you thousands.
Saving Money with Bundled Home and Auto
Insurance companies have a reputation for handing out discounts to drivers and homeowners who meet certain risk-reducing requirements. However, one of the biggest discounts could be right under your nose – a home and auto bundle. According to a study cited by Insurance Business America, the average person here in Minnesota can save nearly $300 per year by purchasing their car and home insurance from the same provider. Those savings can really add up over time. That can total $3,000 over a period of 10 years, and even more if you account for interest growth on the savings.
Of course, discounts vary from one insurance company to another. As an independent agency, our number one goal at the Andreotti Agency is saving our customers money on home and auto coverage. While some may purchase separate policies from more than one provider, there is no denying the level of savings many of our customers have achieved by combining home and auto coverage under a single insurance carrier.
In addition to savings on premiums, purchasing your home and auto insurance from the same carrier can yield many more benefits. Most obvious is the simplicity of having just one insurance company to pay instead of multiple bills from more than one carrier. This is especially true for people who purchase additional types of coverage from the same insurer.
Bundles vs. Packages: What’s the Difference?
Each insurance company has a different version of this discount. Some call it a multi-line or multi-policy discount, while others call it bundling. Some even offer a home and auto insurance package, which works differently than individual policies purchased from the same provider. With individual policies, coverage and premiums are allocated separately for the house and vehicles, with bundling discounts applied independently. Under a home and auto insurance package, however, the two types of coverage are combined into a single policy with a single deductible and single premium.
Packaged car and home insurance options may be a lesser known option in Minnesota than bundled policy discounts, but they can add a new level of savings and simplicity for customers who are willing to purchase multiple types of coverage from the same provider. In addition to home and auto, you may be able to include many other types of coverage in a package policy, such as boat, RV, vacation homes, investment properties and small business insurance. In some cases, you may be able to acquire better and more complete coverage for all of your assets under a single policy than you would be able to find with individual policies.
If you have questions about package discounts on car and home insurance – just give us a call or send us an email!