Santana Insurance

What is a home and car insurance bundle? link When you purchase insurance for your car and home from the same insurer, that’s called bundling. If you rent your home, you can bundle your car and renters policy. By combining your different types of insurance this way, you may benefit from a multipolicy discount and billing from one company. It may simplify your life and ease your wallet. Another way to benefit from discounts is to combine your vehicles into a multi-car policy. Does bundling my policies together guarantee lower insurance rates? link No, combining your policies under one insurer does not always save you money. In addition, if you do decide to go ahead and bundle your policies with one insurance company, this will not guarantee the cheapest rates. Many times, insurers will provide a discount to bundle, for example, your car and home insurance. And although these discounts are a welcome benefit initially, it’s recommended that you occasionally shop around rather than run your policies on auto-pilot as rates can increase over the years. When should I bundle my home and auto insurance? link If you own a home with a mortgage, your lender may require a homeowners insurance policy. Some homeowners associations also require that you carry insurance. In addition, most states do require that your car be insured. As a home and car owner, you may benefit from a discount and save money by buying both your home and auto policy from the same insurance company. But don’t wait until renewal time to start shopping around. You’ll want to compare coverages and rates from more than one insurer to be sure you get the best deal and the right insurance coverage you need. However, there are instances when bundling may not make sense. For example, if you happen to live in a high-risk area, buying separate policies from different insurance companies for your home and auto may actually be cheaper. How do I find the car and homeowners insurance bundle that meets my needs? link Start by checking with your state and/or lender for required insurance coverages on your car and home. Most states, for example, will require liability insurance for your vehicle. If you have a mortgage on your home, your lender will likely require dwelling insurance. If you live in areas of extreme weather or catastrophic events like earthquakes, you may need to add additional coverages. You should include all of these state and lender-required insurance coverages for your home and car and be sure to include your assets. Are there any negatives to bundling my policies together? link Although the incentive of saving on your premiums is possible with most insurance companies, these discounts may change (be reduced) the longer you keep your policies with the same insurer. By conveniently bundling your insurance policies like car and home together, there is a strong likelihood that you may not shop around for better rates for your separate or bundled policy needs. And although some insurance companies do offer loyalty discounts for keeping your policies with them this does not happen with all insurers. Also, bundling does not guarantee that you will have the simplicity of working with one insurer. Some companies use affiliates to provide a portion of the bundling option. Unfortunately, if for some reason the relationship of the companies dissolves, you may find yourself with rising rates or the need to find a new insurer. What should I do before I bundle my insurance policies? link Before bundling your insurance, be sure to review your current policies for your coverages, amounts, and rates for comparison. It’s possible that you may find it cheaper to keep your policies separate. In addition, you’ll want to compare rates every few years.