Will I save money by bundling home and auto Insurance?

The advertisements claim hundreds of dollars of savings, just for auto insurance. Now the ads recommend you bundle home and auto insurance. Reportedly, the savings are even greater. Consumers know big insurance companies are marketing driven companies. So what can they believe? Should insurance be bundled? We break this down into the important elements of insurance: Price, Protection and Service.

Home and Auto Insurance Price

Start by finding a fair price. Use our insurance price estimators as guidance to what’s a reasonable price for insurance. Just click the buttons below to use the calculators.

It’s true, many companies do offer discounts for bundling your home and auto insurance. Therefore, when considering only price as a factor, bundling is often a good idea.

The most common discount amount is 10%.  The car insurance calculator (button above) includes this in the calculations. Therefore, you can see how bundling will save you money.

There are multiple reasons insurance companies offer discounts on bundled home and auto insurance, including:

Consumers with both home and auto insurance through the same company shop for new insurance less than half as often. This means insurers have a higher customer retention rate. Increased customer retention has many benefits for businesses.
Homeowners tend to be less risky customers than non homeowners. Again, insurance companies like this characteristic. in customers.

Price isn’t everything. What about protection?

Discounts offered on home and auto insurance bundles is not an indication the insurance company will do a good job when it comes to protecting you. Your piece of their business is so small that offering better protection is not even a consideration. The reality, your doesn’t matter. For most insurance companies, each claim must stand on its own. If the insurance company wishes to fight the claim, they will.

ValChoice always recommends making sure you’re with a good insurance company. That’s why we provide free ratings on every insurance company in the country. Insurance companies must meet minimum business thresholds to be rated. However, there aren’t many insurance startups so effectively we rate them all. Click the buttons below to get a free rating on your insurance company.

Service Matters Too

Yes, service is also important. The ValChoice ratings includes service. We’re the only company in the industry to include actual service metrics, as measured by insurance experts. Best of all, we make it easy to find this information. Yes, we list the best insurance companies, both home and auto, in every state. Just click the buttons below to find the best insurance companies in your state.

Insurance companies do not pay ValChoice to rate them. Instead, ValChoice provides this service to consumers because consumers are required by law or business practice to purchase insurance. We believe that anyone who is mandated to buy a product deserves transparency on how good the product they are buying actually is.

NOTE: ValChoice does not get paid by insurance companies for rating them. Also, we do not use data from user surveys or online reviews in our ratings. Both of these methods are notoriously unreliable for rating insurance quality.

About Dan Karr

Dan has been a CEO or Vice President for high-technology companies for over 20 years. While working as a Senior Vice President of Marketing and Sales for a technology company, Dan was seriously injured while commuting to work. After dealing with trying to get insurance companies to pay his significant medical bills, or to settle a claim so Dan could pay the medical bills, he became intimately aware of the complexity of insurance claims. Dan founded ValChoice to pay forward his experience by bringing consumers, insurance agents and financial advisors easy-to-understand analysis needed to know which insurance companies provide the best price, protection — claims handling — and service.