UPDATED: Mar 13, 2020
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Combining insurance policies is a great way to save money. Some companies let you bundle multiple car insurance policies together. Others let you bundle life, home, and car insurance together.
To encourage customers to buy multiple insurance products, companies will offer steep discounts for packaging or bundling multiple insurance policies. Many customers also enjoy the convenience of working with just one company and billing system.
You may also receive a discount for combining insurance policies of the same type. If you and your significant other recently moved in together, then you may combine auto insurance policies and get a discount.
Today, we’re explaining everything you need to know about combining insurance policies together.
Why Do Companies Give Discounts for Combining Policies?
Insurance companies give discounts for combining policies because they want your business. Insurance is a competitive industry. There are dozens of major car, life, and home insurance providers across the United States. Insurance companies know you have options.
Insurance companies also understand that the same people who need car insurance may also need home insurance, renter’s insurance, life insurance, health insurance, dental insurance, and other insurance products.
Plus, it’s cheaper to upsell an existing client than to acquire a new one. Insurance companies are willing to give you a discount because they have already acquired you as a customer.
Ideally, insurance companies want to create policyholders for life. The perfect insurance company customer is someone who pays their premiums every month and never makes a claim. By signing you up for a bundle of insurance products and getting you familiar with the company, the company makes it more difficult for customers to switch.
What about discounts for combining multiple auto insurance policies with a spouse or significant other? Insurance companies give these discounts for a similar reason. They want to encourage new business and make it more convenient for customers – and harder for them to switch. Plus, married drivers are statistically less likely to make a claim than single drivers.
For all of these reasons, insurance companies offer steep discounts when combining insurance policies. Depending on your insurance needs, it may be in your best interest to take advantage of these discounts.
How to Get a Discount for Combining Insurance Policies
Generally, the best way to get a discount is to contact your insurance company. Your company’s agents will be happy to help you buy new insurance products.
Ask which discounts are available. Explain that you wish to add life insurance, home insurance, or some other type of insurance policy.
Make sure to get price quotes from multiple companies. If you want to switch to a new company, then now’s the best time. Or, show the price quotes to your current insurance company to see if they can match.
Benefits of Combining Insurance Policies
Combining insurance policies can lead to several significant advantages, including:
- You can save hundreds or even thousands of dollars per year.
- You only have to deal with one billing system. When combining multiple policies, all of your premiums should be consolidated into one easy payment. There’s less paperwork to manage. There’s less risk of missing out on bills.
- For a situation requiring multiple types of insurance claims, it can be much more hassle-free to have all insurance products under one roof. If your garage burns down, for example, then you can deal with a home insurance claim and car insurance claim through the same company.
- There’s only one renewal date for your policies. You don’t have to worry about monitoring multiple renewal dates across your home and car insurance.
Which Insurance Policies Can Be Combined?
Today, most of America’s largest car insurance companies also sell different insurance products. Typically, the same companies that sell car insurance also sell home insurance, renter’s insurance, RV insurance, ATV insurance, and other property and casualty insurance products.
Certain car insurance companies also sell both car insurance and life insurance – although this is less common. In some cases, you can find car insurance companies that also sell health insurance, dental insurance, and similar insurance products.
As insurance companies have grown in size, many of them now offer separate insurance products through affiliates they have acquired. A health insurance company may offer car insurance through an affiliate, for example. It’s easier to bundle and combine insurance policies than ever.
Generally, the most popular policies to combine are car insurance and other property and casualty insurance policies – like home insurance or renter’s insurance. However, based on your insurance company and your insurance needs, you may be able to bundle multiple policies.
Combining Insurance Policies with a Spouse or Significant Other
If you both have vehicles with separate insurance policies, for example, then you may wish to bundle them together under the same company to save hundreds of dollars per year.
You can also bundle multiple types of policies together – say, your home insurance policy with your spouse’s car insurance policy – if the insurance products are offered by the same company.
Generally, you can combine insurance policies and get a discount when you’re in a domestic partnership or married. Couples who are married or in a domestic partnership don’t just get a discount from bundling; they also get a discount because they’re statistically safer drivers than single people.
For all of these reasons, it may be in your best interest to combine insurance policies with a spouse or significant other.
When to Keep Insurance Policies Separate
In some cases, it’s not a good idea to combine insurance products with one another. Some of the things to consider include:
Individual Policies May Be Cheaper
You’re not guaranteed to save money by combining insurance products together. Some companies offer cheap car insurance, for example, but have more expensive home insurance. Even with the bundling discount, you might be better off with a cheaper policy from a competing home insurance provider.
Your Spouse or Significant Other May Have a Bad Driving Record or Bad Credit
Depending on your spouse or significant other, you may wish to keep insurance separate. Let’s say your spouse has a low credit score, multiple at-fault claims, and three DUIs on her record. In this case, you’re unlikely to save money by bundling car insurance with her. Your own insurance premiums will skyrocket. You may be better off keeping insurance policies separate.
Your Spouse or Significant Other Has a High-End Vehicle
If you drive a Toyota Camry and your spouse drives a Lamborghini, then you may not save money by combining car insurance policies together. If one partner drives an expensive, high-end vehicle, then it may be better to keep both policies separate.
Excluding a Spouse or Significant Other from Car Insurance
By excluding your spouse, you can avoid paying higher insurance premiums when moving in together. If you don’t exclude your spouse, then you will need to list your spouse on your insurance policy, which could lead to higher premiums.
Driver exclusions are available in some states but not others.
Final Word: Request a Multi-Policy Quote from Multiple Providers Today
Ultimately, it’s easier than ever to shop for insurance today. Request a multi-policy insurance quote from multiple providers. Compare your options and see what insurance companies can do for you.
Or, contact your own insurance company and request a quote. See what they offer. It’s in their best interest to retain you as a customer. If you want to buy multiple insurance products, then your insurance company may be willing to give steep discounts to retain you.