How to combine car insurance and homeowners insurance

Buying two or more insurance policies, such as homeowner's and auto insurance, from the same insurance company is called "bundling." Combining saves you money with a discount that applies to both policies. This is referred to as a "multi-policy discount" on the policy's announcement page.

In addition to being cheaper than having individual insurance policies, bundling has other benefits, such as less hassle. By dealing with only one insurance company, you can more easily manage your policies through the same online portal or agent. You can also identify coverage gaps and combine renewal periods and payment dates.

Depending on the insurance company and where you live, there are additional benefits to bundling. For example, Safeco offers some customers that consolidate the franchise for one loss. So, if your car is damaged in the same way as your home (such as a flood), your car's franchise will be canceled after your homeowner's franchise is paid.

How to determine if the kit is right for you

While your auto policy package may give you a discount, it's not always the best choice. You can get lower rates on cars and housing by buying policies from two different insurance companies.

According to the US National Auto Insurance Survey by JD Power and Associates, 58% of people combine their auto and home insurance policies. To see if you should join this percentage, compare auto insurance rates with and without the package.

The discount for packaged policies varies depending on the insurance company. On average, the savings from combining auto insurance and home insurance policies in one insurance company (in the US) was about 7.7%. It was 4.9% for packaged auto and renter insurance (according to data compiled by Quadrant Information Services for Insurance.com).

Insurance companies sometimes give a discount on both policies instead of a lump sum discount. Travelers receive a discount of up to 13% on car insurance and up to 15% on home insurance when combining insurances. Consolidation can also help offset other expenses. For example, teen car insurance is expensive, so if you're adding your newly licensed teen driver to your policy, be sure to consider bundling to keep costs down.

One of the reasons insurance companies offer these discounts is because they profit from two policies, and partly because customers who combine their insurance policies are more likely to renew their policies. Insurance companies also know that homeowners are making fewer claims on their auto insurance policies.

Other types of insurance that can be combined with home and car insurance.

There are other types of insurance that you can add to your car and home insurance policy to get lower insurance rates in general:

• interest
• Motorcycles
• RV
• LIFE

Although some auto insurance companies do not offer homeowners insurance, some may join a home insurer to offer a discount. You should always ask your agent or support rep to see what's available.

Auto insurance companies that combine

Many companies can combine home and auto insurance policies, such as Progressive, Safeco, and The Hartford, just to name a few. Call Insurance.com at 855-430-7751 for pricing information from these and other providers.

This article is adapted with the approval of carinsurance.com: http://www.insurance.com/auto-insurance/home-and-auto-insurance-bundle.html