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Will Bundling Your Auto and Renters Insurance Save You Money?

Do you want a car? Do you also rent an apartment? If so, then you may be interested in bundling your car insurance and your renters insurance policies together. Sometimes, this can save you hundreds of dollars per year. Other times, it can backfire and end up costing you more money in the long run. If you’re confused about whether or not you should bundle these two policies together, keep reading for advice on which move would be best for you.

Finding Good Renters Insurance Bundling Discounts

If your provider offers both policies in your state, check to see how much of a discount you can get by bundling them as opposed to paying both premiums separately. Next, check with a few different companies who also offer renters insurance in your area. Sometimes, you may actually get a better deal purchasing a separate renters policy from another company than bundling it with your current auto insurance provider. It’s rare, but if you find such a deal, the savings can really add up over time.

Not all providers offer the option to bundle both of these policies, even if your insurance provider does offer them both in your area. In the state of Florida, for example, Progressive Insurance Company does offer both car and renters insurance to its customers. However, an option to bundle those two policies together is not available in the state. If you’re interested in purchasing both forms of coverage, be sure to ask your insurance agent if bundling is an option for you. If not, you may be better off shopping around for a renter’s insurance policy from another provider.

Separate vs. Bundled Premiums Legend: Separate Premiums Bundled Premium GEICO State Farm Farmers Nationwide Allstate Liberty Mutual 20 40 60 80 100 120 140 160 180 200 220 $118 $114 $133 $119 $130 $117 $144 $138 $166 $157 $229 $223

Is Bundling a Good Idea for You?

If you shop around and discover an opportunity to bundle your renters insurance and car insurance policies for an affordable rate, it can be tempting to switch companies right away. But not so fast. There are situations in which the cost of leaving one company just to get a discount from another on multiple insurance policies could backfire and end up costing you more than you’re saving. Other times, you may benefit from staying with your current provider and bundling, even if it isn’t the absolutely cheapest deal out there.

If your current policy has not yet expired and you want to switch right away, some companies – even major providers – will charge you an early cancellation fee. Of course, you can avoid these expenses by postponing your switch until your policy is up for renewal. However, if you do that, you run the risk of losing your potential discount with the provider who quoted you the cheaper price. The discounted rate they offered you could expire before you’re ready to switch. Furthermore, if anything goes wrong between cancelling your policy renewal with your current company and starting a new policy with the other, that situation could easily lead to a lapse in coverage. And no matter what, this coverage lapse is going to cost you higher premiums.

Auto Insurance Premiums After a Coverage Lapse Legend: Continuous Coverage Short Coverage Lapse Long Coverage Lapse Maine Missouri Nevada Washington Georgia 15 30 45 60 75 90 105 120 135 $58 $63 $81 $94 $102 $131 $75 $81 $104 $79 $85 $110 $101 $109 $141

 
There are still some upsides to bundling though, even if it isn’t the absolutely cheapest deal you can get. For starters, your insurance provider will do what they can to hold on to your business, even if you file a few claims within a short time span. There’s also the convenience of knowing that you can just pay one bill once a month and be done with it; you won’t have to worry about whether both policies will be paid off when they are due. In general, the automotive industry recognizes that customers who have a bundled policy with their insurer tend to be more satisfied with their customer service, and tend to stay with their provider longer then if they only had a single policy. And as you may know, the longer you stay with a specific insurance provider, the more likely you will be to earn loyalty discounts overtime.

Whether you’re renting right now because you’re trying to save money for your own home, or because you don’t want to deal with the financial headaches of home maintenance and homeowners insurance, protecting your assets with renters insurance isn’t something you should skimp on. You can get thousands of dollars in protection for your prized possessions at rates as low as $29 per month, on average. And you may even be able to get it cheaper than that if you start shopping around and comparing different homeowners insurance companies right now.

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