Bundling your home and auto insurance policies often leads to savings and convenience. BUT, there are certain situations where it might be better NOT to bundle your policies. Here are 4 scenarios in which keeping your home and auto insurance policies separate may be better.
High-risk home - If you live in an area that is prone to natural disasters, such as earthquakes or floods, or if you have a history of making multiple claims on your home insurance policy, you may want to consider keeping your home and auto insurance policies separate. This is because your home insurance policy may be more expensive due to the higher risk, which could make bundling with your auto insurance policy less cost-effective.
High-value home - If you own a high-value home, you may want to consider insuring it with a specialty insurer that specializes in these. These insurers typically offer more comprehensive coverage options and higher policy limits than standard insurers, but they may not offer bundling discounts. In this case, it may be better to keep your home and auto insurance policies separate to ensure that your high-value home is adequately covered.
Non-standard auto policy - If you have a non-standard auto insurance policy, such as a policy for a classic car or a policy for a driver with a poor driving record (or teen), you may want to keep your auto insurance policy separate from your home insurance policy. This is because non-standard auto policies may be more expensive than standard policies, and bundling may not provide as much of a discount and could even be more expensive.
More flexibility - Bundling your policies may limit your options, as you may only be able to choose from the coverage options offered by the insurer. If you want to have more control over your coverage options, it may be better to keep your policies separate.
How do you decide whether to bundle or unbundle your home and auto policies?
Easy! Work with an independent insurance expert who can advise you on the best coverage for your unique situation.