Buying Home and Auto Insurance from the Same Provider

A home and a vehicle are two of the most expensive items that you will ever own. As assets, both your home and your car need to have insurance coverage. You can buy your home and your auto insurance from the very same provider, and there are benefits from doing so.

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Buying your car and homeowner’s policy from the same insurance company can be a great move that can save you a lot of money. There are many companies that offer both lines of insurance coverage.

Auto Insurance Needs

Before you buy both auto insurance and a homeowner’s policy, you first need to determine how much coverage you need to protect your assets. Without enough coverage, you may have very high costs as a result, advises WiserDrivers.com.

Auto insurance is paramount to protecting your current and future financial standings.

The first possible event that you need to be prepared for is if you cause an accident. The protection for this is called liability coverage.

Most states require that you have at least a minimum amount of liability coverage so that innocent drivers are not penalized for your actions. You must buy at least the state mandated minimum amounts for injury and damage liability, which pays for medical bills and damages that you cause others. Find your state’s minimum required amounts by utilizing this map provided by the Insurance Information Institute .

Also along the same lines, you need to have coverage to fix your vehicle if you cause an accident. Liability insurance will not pay for these damages. Only collision coverage will pay to fix your vehicle if you cause an accident. Many states require that you also purchase Personal Injury Protection (PIP) to pay your medical bills no matter who is at fault.

Another eventuality that you need to plan for is if you are in an accident that is caused by someone else, and that driver does not have insurance. Many states require that you purchase uninsured/ underinsured motorist coverage to pay for your injuries if the other driver cannot pay; collision is also a necessity in such an instance to repair your vehicle.
A last possibility that you need to plan for is vehicle theft or damage that is really no one’s fault. In such an instance you will want to have comprehensive coverage. There is no other driver to pay for your damages during a hail storm, if your vehicle catches on fire or if you hit a deer.

Each state has its own requirement for which coverage types you must buy, the minimum amounts to buy and what you can opt out of. You must determine your particular car insurance needs, remembering that it is always better to have more insurance than less.

Home Insurance Needs

You next stop when buying car and house coverage from the same insurance provider is to determine how much home insurance you need to again be prepared for every possible occurrence.

As one of your biggest assets, and the place where you live, it is very important to protect the value and integrity of your home.

The first occurrence that you must be prepared for is unexpected loss from fire or other natural disasters. Storms can cause damage to your home through forces like wind, falling trees and debris.

If you live in an area that is prone to unique disasters, such as flood or earthquakes, it is important to purchase additional coverage as such items are not usually included in a normal homeowner’s policy. The US Department of Homeland Security and the Federal Emergency Management Agency offer a free manual concerning floods and protecting your home and family.

A second possibility that you want to be prepared for is the loss of the belongings in your home. This coverage will pay to replace those things that are stolen or lost through a fire or other covered occurrence.

Home insurance also has a liability section of coverage, though it is not used quite as much as your vehicle’s liability insurance. It pays for injuries that you as a homeowner are responsible for, such as if someone is hurt on your property or your dog bites someone.

Furthermore, there is also a part of a homeowner’s policy that will pay for you and your family to stay elsewhere while your home is fixed or rebuilt after a fire or other damage. Knowing how much coverage you need for each part of a homeowner’s policy will ensure that you buy enough insurance but are not buying too much.

Benefits of Bundling Insurance Policies

Bundling is the term that most insurance companies use when you are buying more than one type of insurance package from the same provider.

There are many benefits that can accompany buying both insurances from the same company; the first is savings.

Generally, most providers offer a discount when you purchase multiple packages. Discounts will vary depending upon the company, how much insurance you buy and other personal factors.

An additional benefit is that bundling your policies means that one bill to remember to pay every month, instead of two. You might even have a single dedicated agent that you can deal with for both policies.

Possible Issues With Bundling

However, bundling also has drawbacks. For instance, not all companies utilize a dedicated agent to handle the accounts of customers who bundle; you may still have two separate phone numbers to call or even two separate divisions to deal with.

If you become dissatisfied with one side of your policies it can be a hassle to switch just that package. Will you find a new company to bundle your policies or will you separate your insurance again? Some people feel uncomfortable telling an agent that they are switching to another provider, and may even stay with a policy that no longer works to avoid the conflict.

Major Insurers Who Offer Both

There are many companies that offer both car insurance and home insurance. The National Association of Insurance Commissioners releases an annual free Market Share Data Report that lists the top 25 insurers in the US. The top 25 companies that offer insurance are listed along lines such as homeowner’s insurance, private auto insurance and commercial auto insurance.

Many of the largest insurers in the US offer multiple lines of insurance and other financial products.

Some companies, according to the Market Share Data, have substantial parts of the market for both home insurance and auto insurance. Major companies include:

• State Farm controls 18.62% of the market for private auto and 21.34% of the market for homeowner’s insurance
• Allstate has 10.32% of the private auto market and 9.36% of the home market
• Zurich Insurance Group controls 5.91% of private auto and 6.32% of the home insurance market
• United Services Automobile Association Group (USAA) commands 4.60% of the private auto market and 4.65% of the homeowner’s market
• Liberty Mutual Group has 5.54% of private auto and 5.49% of the homeowner’s market

All of the above companies are within the top five providers of homeowner’s insurance in the US and the top seven providers for private automobile insurance. There are many other large companies that also offer both lines of insurance.

You do not have to utilize one of the biggest, however, to find a provider who offers both lines of insurance. You very well may be able to find a small, regional insurance provider in your area who is licensed to sell both car insurance and home insurance.

Compare Prices to Find the Best Rate

When you begin the process of looking for an insurance provider for both your house and your vehicle, the best thing to do to find the right price for you is to compare prices. You will need to get multiple quotes from different companies so that you can compare rates.

Make sure that you always use the same amounts of for policies you compare. Since every insurer offers slightly different discounts and applies those discounts in different ways, you will find a wide array of prices for your insurance needs.

You can get quotes in a number of ways. If you want a small, local provider, then stop by their local office or call their phone number. Many people value having a local agent over a low price. If you want the stability of a bigger provider, then you have options beyond speaking with an agent at their local offices. For one, you can call their 800 number. You can also find the bigger providers’ websites.

Another option is to utilize quote comparison websites. Get a quote for your car insurance, and then further pursue a homeowner’s policy quote with an agent, or online.

Again, getting multiple quotes is the best way to get a great rate for both home and auto insurance.

It is also a good idea to check the financial ratings and customer service ratings of the companies you are considering. A great price doesn’t mean a whole lot without exceptional services and business practices from your insurer. Such ratings can be found through asking friends and families, with ratings organizations or by getting a referral from you state’s department of insurance.

Once you have found the perfect provider for both your home and auto insurance needs, you can rest easy knowing that you have appropriate coverage. Find peace of mind by starting your search below now when you place your ZIP code into the FREE box!