Bundling Renters and Auto Insurance: 4 Things to Know

If your insurance company offers this particular discount, bundling renters and auto insurance together is a way to potentially save some money as opposed to buying these two coverages separately. This bundling option is offered by most insurers that sell both auto and renters insurance because it increases their business.

It not only saves you some premium dollars but also helps make your insurance portfolio easier to deal with since you can transact business with a single agent and have contact with your insurer through one single contact point when you need to make a claim. Multiple policies carried with one provider also simplifies paperwork/billing, saving time and money for you and your insurer.

You may save additional funds by adding more policies to your bundling renters and auto insurance strategy. Motorcycle insurance, boat insurance and even life insurance can be added to the discount scenario to bring you even more savings.

Bundling Usually Saves Money

Insurers that offer a discount for bundling multiple policies typically give from 5%-25%, with the highest discount commonly for a homeowners insurance policy since, your home represents such a large investment. Renters insurance won't provide as large a discount, but every little bit helps. If your insurance company can get you to add multiple policies to your coverage that's one less client they need to bring in to make their customer quotas.

One caution about bundling policies, however, is to make sure you don't become complacent about your coverages and adopt a “set it and forget it” mentality. You should continue to compare rates with competitor insurers to make sure you're still getting acceptable rates. Just because you have a multiple policy discount from one insurer doesn't mean you shouldn't consider switching companies if you can get a better deal elsewhere.

A Word About Renters Insurance

The number of renters is on the rise, with renters now outnumbering homeowners in a number of American cities. While it's estimated that approximately 91% of American homeowners carry homeowners insurance, only about 46% of renters carry renters insurance. This is according to the 2018 Pulse Survey conducted by the Insurance Information Institute.

Like homeowners coverage, renters insurance provides protection against loss, damage or destruction of the the personal property you have in your residence. It also gives you liability protection and provides living expenses should you be required to temporarily vacate your dwelling following an insured disaster. Yet, renters insurance is relatively inexpensive, costing an average of less than $200 per year.