Thanks to rising interest rates and replacement costs, combined with increased claims, home and auto insurance is getting more expensive. When looking for ways to save on your insurance premiums, bundling home and auto insurance together may be worth it.
But what are the benefits, and how much do you save bundling home and auto insurance? We explore the pros, cons, and savings below.
What Are the Benefits of Bundling Home and Auto Insurance?
Bundling your home and auto insurance with one provider can benefit you. The main advantage is that you’ll typically save money on your premium, reducing your overall insurance cost.
Also known as “multi-policy discounts” or “dual-policy discounts,” having multiple insurance products with one provider has several advantages, including:
- Increased savings – According to ThinkInsure, you can expect to save 20% on average when bundling home and car insurance
- Simpler policy management – Dealing with a single insurance company can be easier to keep track of. Some insurance companies will allow you to pay one premium per month for both home and auto insurance
- Deal with one insurance company – One insurance company means one point of contact for claims and policy changes.
- Single deductible – If you need to file a claim for both your home and car at the same time, you may be able to pay a single deductible
You don’t necessarily have to be a homeowner to take advantage of multi-policy discounts. Having condo or tenant insurance will typically qualify as well.
How Much Can You Save by Bundling Home and Auto Insurance?
The exact savings will depend on your coverage needs. However, according to ThinkInsure, you can typically save up to 20% on your auto insurance and up to 50% on your home insurance by combining your policies.
Since car and home insurance can be a significant monthly expense, it’s well worth investigating potential discounts from insurance bundles.
Where to Get Quotes for Bundled Insurance
If you already have home and auto insurance, check with your insurance providers about bundling discounts for home and auto coverage.
Some examples from the best insurance companies in Canada include:
- TD – By bundling your car and home insurance with TD, you could save between $566 and $412 per year, depending on your province. You can save even more if you belong to an alum, professional, or employer group that qualifies.
- RBC Insurance – By combining home and car insurance through RBC Insurance, you could save up to 10% on your premiums, or about $850 for a typical Ontario resident.
- Allstate – With Allstate’s “Take Two” Advantage, Ontario customers can combine their home and auto insurance for an average annual savings of $712.
- Intact Insurance – By bundling your home and car insurance with Intact Insurance, you can save up to 18% on your auto insurance and up to 12% on your home insurance, which could add up to $650 per year.
- ThinkInsure – As an insurance brokerage, ThinkInsure can help you save up to 20% on your car insurance and up to 50% on your home insurance.
Many insurance companies enable you to get a quote online, so it’s easy to compare options. Although many of us stick with the same insurance provider year after year, shopping around for rates before your yearly renewal date can also help you save on your insurance premiums.
Other Options For Bundled Insurance Policies
Car and home insurance is not the only option for insurance bundles. Depending on your insurance provider, you may be able to bundle other options with your home or car. For example:
- Motorcycle insurance
- Recreational vehicle (RV) or motorhome insurance
- Snowmobile insurance
You can also bundle two or more vehicles, motorcycles, or snowmobiles. Another option is bundling your primary residence with a cottage.
When It Doesn’t Make Sense to Bundle Insurance
It may not always make sense to bundle your auto and home insurance. It’s essential to ensure that using the same insurance company for both policies is the best option for your situation.
Before you bundle home and auto insurance, compare separate policies and insurance bundle quotes from several insurance companies to maximize your savings.
Sometimes, an insurance company may only offer some of the coverage options you need for home and car insurance. For example, if you need high-risk vehicle insurance because of a poor driving record. Home insurance that includes coverage for short-term rentals, vacant homes, or those considered high-risk to insure may also be harder to bundle.
Final Thoughts on Bundled Home and Car Insurance
When looking for ways to save money on your insurance policies, it’s worth taking the time to research the best coverage for you and determine whether bundling your home and car insurance will save you money. An insurance broker can help you compare options from multiple providers.
While bundled policies are often cheaper, there are other ways to reduce your premiums. For example, raising your deductible, driving a less expensive car, avoiding small claims, and shopping around each year before your renewal date.
