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Should I bundle my home and auto insurance?
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I currently pay approximately $1,200 per year for my auto insurance with Company A and $900 per year for my home insurance with Company B. I received a quote from Company A to bundle both policies for a total of $1,850 per year. That seems like a great deal, but I’m concerned about potential downsides, such as rate hikes later or less personalized service. Has anyone bundled their insurance? What was your experience like? Is the convenience and potential savings worth having all my eggs in one basket?
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Bundling your home and auto insurance can often provide benefits, including potential cost savings, convenience, and simplified policy management. However, there are several factors to consider:
1. Cost Savings: In your case, you currently pay a total of $2,100 per year for auto and home insurance separately. The bundled quote of $1,850 offers a clear annual savings of $250.
2. Rate Hikes: One concern with bundling is that companies may be more likely to raise rates on bundled policies rather than on individual ones. It’s important to review the terms carefully and understand how rates can change over time.
3. Service Quality: Some consumers worry that by bundling, they may receive less personalized service. This varies by company. If you have had a good experience with either company, you might want to inquire about customer service related explicitly to bundled policies.
4. Coverage Options: Ensure that the coverage levels in the bundled policy meet or exceed those of your current separate policies. Sometimes, bundling can result in reduced coverage options or limits.
5. Loyalty Discounts: Check if either insurance provider offers additional discounts for loyalty or if keeping them separate could yield better benefits in the long run.
6. Claims Handling: Having all your insurance with one company can sometimes streamline the claims process, but it’s worthwhile to research and read reviews regarding claims experiences for the bundled option.