There are several reasons why people do this. For one thing, it's usually cheaper than getting two separate policies. Another reason is that some companies offer discounts if you bundle your policies. Here are three tips for getting a great home and auto insurance bundle:
Take Advantage of Discounts
Discounts are one way to make your policy cheaper. For example, you can get a discount if you have a home security system or smoke detector. You might also qualify for a discount for having multiple policies with the same company.A bundling discount is one in which you can get a deal by combining multiple types of insurance into one policy. The most common example is combining auto and home insurance bundle into one package, called an auto/home package. The idea is that it's easier for the company to manage fewer customers and policies, so they'll offer a discount to attract more customers and make their lives easier.
The best way to find out what discounts you qualify for is to call your insurance company and ask them what they can do for you. Insurance agents are often helpful when finding savings opportunities like this one.
Maintain Good Credit
Maintaining good credit is one of the simplest ways to save money on car insurance. A poor credit score can result in higher rates and additional fees, while a strong score will lower your costs and help you qualify for discounts.If you need help meeting your monthly obligations, take steps to improve your credit score. Here are some tips for how to do that:
First, pay off your debt. Debt will hurt your credit score more than anything else, so if you have any loans or credit card balances, pay them off as soon as possible. The best way to do this is by making larger payments than the minimum due each month to knock out these debts quicker.
Keep balances low on credit cards and other loans. If you have an installment loan, like a mortgage or student loan, make sure it's paid off before applying for auto insurance. Otherwise, it will negatively impact your credit score until it's paid off completely.
Watch out for new accounts with high limits and late payments on existing accounts. Opening new accounts may help build up your overall limit, but having lots of outstanding debt can also harm your score — especially if late payments are listed on those accounts.
Customer Service
Customer service is key when it comes to auto and home insurance bundles. If you have an insurance agent you like, it's worth sticking with them, even if they're not the cheapest. You'll know that they'll be there for you if you need help, and they'll be able to answer any questions you have.Here's what to look for when evaluating customer service:
The ability to reach someone by phone at any time of day or night. If you can't get a hold of someone in your state, they won't be able to help you if you ever need them.
The ability to reach an agent easily. You want to avoid being put on hold or transferred whenever you call an agent.
Knowledgeable agents who answer all your questions clearly and promptly. A good agent will know everything there is to know about their product and should be able to answer all your questions without hesitation or having to research anything first.
