Could you use an extra $200 in your pocket? As a resident of The Badger State, you already enjoy some of the lowest auto and home insurance premiums in the nation. Imagine being able to lower your costs even more just by combining your home and auto insurance with the same insurance company. Drivers in Wisconsin who purchase car and home insurance from the same provider enjoy an average savings of $236 per year. Continue reading to learn more about bundling your car and home insurance with the same carrier.
Two Ways to Save
When it comes to purchasing auto and home insurance from the same company, there are two ways to save: bundles and packages. It is important to understand the difference between these two insurance products to determine which might benefit you most.
Home and Auto Bundles
The home and auto bundle itself is not an insurance product, but rather a term used to describe two individual insurance policies purchased from the same insurance carrier. Both types of coverage are stand-alone policies; however the insurance company applies a multi-line discount to the premium. The coverage on one policy does not affect the other, and policy-holders are free to cancel coverage on one policy without canceling the other. However, the bundling discount is contingent upon the customer maintaining two or more lines of coverage with the same provider. If one policy is canceled, the premiums on the other would rise.
Home and Auto Packages
A home and auto package is a unique insurance product in which both home and auto insurance are combined into a single policy. In addition to the savings discounts, some insurance companies are willing to give package policy-holders better coverage for their assets. Generally speaking, a home and auto package has just one shared deductible and one premium. It also provides a greater level of simplicity when it comes to complicated claims involving both a home and a vehicle. If a tree in your front yard collapses on your vehicle and your roof, there is no question of which policy should pay the claims.
The Reason Insurance Companies Offer Discounts for Bundling
For most homeowners and drivers, insurance is not an option – it is a necessity. Since insurance carriers in Wisconsin know that most people who purchase homeowners insurance will also need to purchase coverage for one or more vehicles, why would they offer discounts for purchasing two policies instead of one?
The answer is simple; the idea is to acquire a customer who will remain loyal for many years. When you purchase multiple policies from more than one carrier, you may be tempted to shop around for competing rates more frequently than you would if you were receiving a discount specifically for having your insurance coverage through a single provider.
For example, assume you receive a competitive quote for single-line car insurance from Insurance Company A and the most competitive quote for homeowner’s coverage from Insurance Company B. At first glance, it may appear as though you are receiving the best possible deal on complete coverage for your house and cars. However, you are likely to find even greater savings if you bundle both coverage types with just one company instead of two.
It is important to speak with your insurance agent before purchasing car and home insurance. Here at Frydach Insurance, we help Germantown area drivers and homeowners find the most complete coverage at competitive rates from some of the leading insurance carriers in Wisconsin. We can help evaluate your coverage needs and determine if a bundle or package insurance option could be right for you.