Home and Auto Insurance

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Contributor, Benzinga
July 20, 2021

Home and auto insurance are both required. You may just buy them when you need them and not give them a lot of thought beyond that. You may even have them at different insurance companies. Buying both policies from the same insurance company, also known as bundling, may save you money. Learn more about how these policies work and why you should consider bundling your coverage. 

Bundle Home and Auto Insurance

Bundling insurance plans refers to the practice of combining 2 different types of insurance, such as home and car insurance, under a single comprehensive plan. This typically results in a cheaper rate than if you purchase 2 separate policies from the same or different providers. There are multiple types of insurance bundles, with home and auto coverage being among the most popular types of insurance to combine.

Home and Auto Insurance Quotes

Not sure where to start looking for home and auto insurance bundles? Here are Benzinga’s picks. 

Why Bundle Home and Auto Insurance?

Most people have home and auto insurance for these 2 simple facts: this type of coverage is often required if you own a house or car. And bundling these 2 policies into 1 comprehensive plan is a great way to save money. Many providers offer steep discounts for customers who choose to buy multiple policies from them.

Are Home and Auto Insurance Required?

If you financed your home purchase with a mortgage, your lender most likely required you to purchase homeowners insurance. Most states require you to purchase a minimum amount of auto insurance if you drive or own a vehicle. 

What Do Home and Auto Insurance Bundles Cover?

It’s easy to focus on the fact that these types of coverage are required and lose sight of the fact that they provide valuable coverage. Let’s take a closer look at what each type of policy has to offer individually.

Homeowners Insurance

Homeowners insurance protects the structure of your home, including your roof, walls and floors. It also covers detached structures like garages and gazebos but at a lower amount than the insurance you have on your home. 

It also protects your personal belongings, including furniture, clothing and electronics. It also covers personal belongings that aren’t stored at your home, but this coverage may be limited. You may want to purchase endorsements that cover high-value items like fine art. 

Another important type of coverage included in homeowners insurance is liability protection. This helps cover lawsuits against you or another member of your household related to property damage or personal injury — including damage or injuries caused by your pets. This coverage typically covers your defense fees and any awards or settlements up to your policy limits. 

Keep in mind that liability coverage only covers damage done to other people’s property. It doesn’t cover damage to your property. For example, if your dog digs up your neighbor’s carefully landscaped lawn, it would help cover that damage. If your dog digs up your lawn, you’re on your own. 

Auto Insurance

Most states require a minimum amount of auto insurance. States typically require:

  • Bodily injury liability: If you’re found to be at fault in an accident, this coverage helps with the medical care for other parties involved in the accident — not you or your passengers. 
  • Property damage liability: If you’re found to be responsible for an accident, this coverage would help repair or replace the property of other parties involved. 
  • Uninsured/underinsured motorist coverage: This helps cover the costs if you’re involved in an accident with an uninsured or underinsured driver. This also covers hit-and-run accidents. 
  • Medical payments or personal injury protection (PIP): This helps cover the medical costs of you and your passengers. 

State minimum coverage doesn’t cover damage to your vehicle, however, which is why you may want to opt for these optional types of coverage. 

  • Collision: This covers damage to your vehicle if you’re involved in an accident. 
  • Comprehensive: This covers damage to your vehicle that’s not related to an accident, including theft and fire damage. 

Insurance companies may also offer separate glass coverage and roadside assistance. 

Bundle Renters Insurance and Auto

Renters insurance is like homeowners insurance, except it doesn’t include coverage for the structure of where you live. Why? That’s your landlord’s responsibility. It does cover damage to your personal belongings and liability insurance. Like homeowners insurance, you may need a separate endorsement for expensive belongings like jewelry. 

Renters insurance is inexpensive, but you could still benefit from bundling it with auto insurance. It could bring down the price of both policies, and every little bit helps. 

Why Should I Bundle Insurance Policies?

Home and auto insurance tend to be purchased when you need them. You likely have auto insurance, and possibly renters insurance, long before you have homeowners insurance. If you’re a first-time homebuyer, you may not realize that lenders require homeowners insurance. That means you may end up buying your homeowners insurance in a hurry without taking the time to compare plans. 

If you don’t compare plans, you may end up paying more for home and auto insurance than you should. If you have your coverage with different companies, you’re missing out on an insurance bundle, which typically involves a significant discount. 

How to Bundle Insurance

An insurance bundle involves having multiple policy types with the same company. If you have your home and auto coverage with different companies, ask each one about its bundling discounts. There’s a good chance you could save money. 

You can (and should) also get quotes from other insurance companies. It’s a good idea to review your policies at least once per year. It’s an especially good idea to get quotes if your insurance has increased; you may be able to find a cheaper rate elsewhere. 

Finding the Best Insurance Bundles

There’s a lot to consider when it comes to finding the best home and auto insurance rates. You want to make sure you have enough coverage and that you can afford the deductible. You should make sure you have the right types of coverage. And you should consider buying your home and auto insurance from the same insurer so you can take advantage of any discounts for bundling. To make an informed decision, check out Benzinga’s insurance content so you can learn more about your options.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.