Apply Additional Discounts
Applying additional insurance discounts beyond the bundling discount, such as good driver, good student, safety features and others, can further reduce your premiums. These discounts can provide significant savings on your home and auto insurance bundle.
Adjust Coverage Limits
Adjusting your coverage limits is another strategy to potentially save money when bundling your home and auto insurance. By evaluating your coverage needs and finding the right balance between protection and costs, you can customize your bundled policies to fit your specific requirements.
Increase Deductibles
Increasing deductibles is a common tactic to lower insurance premiums. While this means you’ll pay more out-of-pocket in the event of a claim, it can result in significant savings on your bundled home and auto insurance policies.
It’s important to find the right balance between coverage needs and cost savings when customizing your bundled policies. By leveraging a combination of bundling discounts, additional savings opportunities, and coverage adjustments, you can maximize the benefits of a home and auto insurance bundle.
Evaluating Home Insurance Coverage Needs
Home insurance policies include dwelling coverage, contents coverage and personal liability coverage. These coverages are based on two main values: the cost to rebuild your home in case of a total loss (including rebuilding fences, pools and outbuildings), and the cost to replace your personal belongings like electronics and jewelry.
Dwelling Coverage
To determine the right dwelling coverage for your home, you’ll need to calculate the cost to rebuild your home. This is done by multiplying the average building costs in your neighborhood by the square footage of your home. If you have additional structures like a shed, fence, pool or other outbuildings, be sure to factor in their replacement costs as well.
Personal Belongings Coverage
Next, you’ll want to calculate the value of your personal belongings coverage. This includes items like appliances, electronics, collectibles and more. Take an inventory of your possessions and estimate their total replacement cost to ensure you have adequate personal belongings coverage in your home insurance policy.
Liability Protection
In addition to your dwelling and personal belongings coverage, home insurance also provides liability protection. This coverage helps protect you if someone is injured on your property or you’re found legally liable for damages. Consider your risk profile and assets to determine the right amount of liability coverage to include in your home insurance policy.
Evaluating Auto Insurance Coverage Needs
Finding the right auto insurance coverage depends on how much you can pay out of pocket in an accident, your overall risk tolerance, and the requirements in your state. If you own your vehicle outright, the only type of car insurance you’re legally required to have is your state’s minimum liability coverage. However, if you have an auto loan, your lender will likely require full-coverage car insurance, which includes comprehensive insurance and collision coverage.
