What does bundling home and auto mean?

Buying your home (or condo or renters) policy and your auto policy from the same insurance company. They're still two separate policies.

Is bundling always cheaper?

Not always. Many companies offer a discount for having both, but the total can still be higher than two policies from different companies. The only way to know is to price it both ways.

If I bundle, do I have one deductible?

Usually not. Each policy keeps its own coverages, limits and deductibles. Ask the company how it handles one event that damages both your home and your car.

What happens if I cancel one of the bundled policies?

The multi-policy discount usually depends on having both, so the remaining policy may be repriced. Ask before you move one.

Bundling home and auto: how it works — From Elona’s desk

Bundling means buying your home and auto insurance from the same company, which often comes with a multi-policy discount. It can be a good fit, but the discount is only part of the picture: what matters is the total price and the coverage on both policies.

“Should I bundle?” sounds like a yes-or-no question. It’s really a comparison, and it’s one I’m glad to run for people, because the answer is different for every household.

What bundling actually is

When you bundle, you still have two separate policies: one for your home, condo or rental, and one for your cars. Each has its own coverages, limits, deductibles and policy documents. What changes is that one company holds both, and many companies reward that with a discount. The Illinois Department of Insurance describes it as a package discount when both policies come from the same company.

Some companies also discount for insuring more than one car, or for keeping more of your insurance with them.

Why people like it

One company to deal with. One login, one renewal conversation, and often one bill.
A discount on each policy, or on the package, depending on the company.
Fewer gaps. When the same company and agent see your home and your cars together, it’s easier to line up liability limits and spot holes, especially if you’re thinking about an umbrella policy.

Why it isn’t automatically the best deal

A discount comes off a price. If one company is excellent for your car but expensive for your home, the bundle can still cost more in total than two policies from two different companies.

So the honest way to decide is to compare three things side by side:

Home and auto bundled with company A.
Home and auto bundled with company B.
The best home policy and the best auto policy, from different companies.

Each with the same coverages, limits and deductibles, so you’re comparing price, not different policies. The Illinois Department of Insurance gives the same advice about comparing like for like.

Questions to ask before you bundle

What’s the discount, and what does it apply to? Both policies, one of them, or the total?
What happens if I move one policy later? The discount usually depends on keeping both, so the other policy may be repriced.
Are the renewal dates the same? Not required, but it makes reviewing both at once easier.
How are deductibles handled if one storm damages my house and my car? Usually each policy applies its own, but ask.

Florida

In Florida

In Florida, the home side usually carries the bigger decisions: the hurricane deductible, wind mitigation credits, roof age, and whether you also need a flood policy (a homeowners policy doesn’t cover flood). Don’t let a bundle discount talk you into a home policy that doesn’t fit, like a hurricane deductible you couldn’t pay tomorrow. And if you’ve had a wind mitigation inspection, make sure the credits follow you to the new company.

Illinois

In Illinois

The Illinois Department of Insurance lists the auto and home package discount and the multiple-vehicle discount among the ones to ask about. When you compare, check that every quote includes the same uninsured and underinsured motorist limits on the auto side, and the same water backup coverage on the home side if you have a basement.

Good to know

Bundling isn’t a commitment for life. You can unbundle later. Just ask how it changes the price of the policy you keep.
Renters can count too. Some companies bundle renters insurance with auto.
Recheck it at renewal. The best combination three years ago may not be the best one now.

Want me to price it both ways?

Send me your home and auto declarations pages and I’ll show you the bundled and unbundled options side by side, with the same coverage, so you can see the real difference. If keeping things separate is better for you, I’ll say so.

Talk to Elona