A lot of insurance companies urge customers to bundle their insurance policies, but is it really a good thing? There certainly seems to be some benefits from bundling your homeowner's and auto insurance policies. Just take a look.
If You Drive Your Car Through Your House
If you accidentally drive your car through your house or through your garage, you only have to call one insurance company. That is certainly a perk of having one insurance company handle your auto and home claims together. You do not have to make several calls to file separate claims on the accident and get separate checks to do repairs. From start to finish, the whole claim is handled by one company.
If Disaster Strikes Hard
If your house and your car are struck by a powerful tornado, hurricane, flood, or fire, the insurance company can send one agent out to assess the losses and damages on all of your property. The agent then processes the claims for your policies and gets you a check to help cover the costs within just a few days of filing your claims. In the meantime, you may be able to utilize temporary housing options if it is part of your homeowner's insurance or an umbrella policy that covers both your house and your car.
If Your Bundled Insurances Are Escrowed
In many cases, homeowner's insurance is escrowed for homeowners. If you bundle your homeowners insurance with your auto insurance, then the auto insurance becomes part of your escrow, and you'll pay on both policies through your escrow account for your home. This may be more convenient than trying to remember to pay the auto insurance each month and remember to pay the escrow account as well. Just be sure to check with your mortgage company to see if they would allow this bundled insurance in your escrow account.
Almost every insurance company offers discounts on bundled insurance. However, the pricing is never the same. With multiple variables in play, and some insurance companies checking your credit, there is a wide price range for bundled insurance in spite of the discounts you would receive. If your credit is not great, avoid the companies that check your credit. If your credit is good, you can have your pick of insurance companies that offer bundled auto and home policies. Even bigger deals are possible if you opt to add a life insurance policy to the mix.
If you'd like to learn more about your options, you can check it out here.