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How to Choose the Best Home and Auto Insurance Bundle

Home and auto insurance are two of the most important investments you’ll make in your life. You should therefore be aware of what to look for when purchasing home and auto insurance in order to get the best coverage possible at an affordable price. Here are some tips to help you pick the best home and auto insurance bundle that’s right for you

What Does Home and Auto Insurance Cover?


If you ask 10 people what their home insurance covers, you’ll likely get 10 different answers. Most people don’t understand exactly what is included in a typical policy, nor do they know what coverage options are available or how much coverage they really need. The same goes for auto insurance. But it doesn’t have to be that way. Here are three things everyone should know about home and auto insurance: What does home insurance cover? What does auto insurance cover? How can I get the best value on my home and auto policies?

Types of Home & Auto Coverage


There are a number of different coverage types available with home and auto insurance, including liability insurance, physical damage insurance, collision insurance, comprehensive coverage, medical payments coverage (med pay), personal injury protection (PIP), uninsured/underinsured motorist coverage (UM/UIM), and perhaps most relevant here — comprehensive property insurance. In general, you can think of property insurance as covering anything inside your house/apartment. So if your computer is stolen or damaged by fire it’s covered by comprehensive property insurance, but if you damage it yourself then that’s not covered under your policy.

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Comparison Between Different Coverage Options


Let’s take a look at some common insurance coverage options for vehicles and homes. There are many more, but these are two of the most popular types of policies. To help you better understand, we’ll break down how they work by describing two different policies: liability-only car insurance, and home insurance with full replacement value coverage. For both, we’ll go over what you can expect in terms of cost, deductible amounts, and more. Of course—no matter which policy you choose—it’s important to maintain adequate coverage amounts so that you have enough protection in case of a claim (this is particularly true if your policy offers replacement coverage). Let’s dive in!

Exclusions of Home & Auto Policies


When deciding on a bundle of home and auto insurance, you’ll have to decide what’s worth bundling. For instance, if your car is an old, beat-up model that may not be worth insuring, you might want to steer clear of any bundle that includes coverage for it. Similarly, if you have a six-figure mortgage but don’t need life insurance at all because your family wouldn’t get much from your death (if anything), it doesn’t make sense to pay for whole life coverage. Do some comparison shopping online or ask around for rate quotes from different providers before deciding on a policy—especially if a bundle package comes with a discount. If its price seems too good to be true, it probably is.

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What Is Not Covered by Home & Auto Policies?


There are several items that are not covered by home or auto insurance policies. This is particularly true of comprehensive plans, which only cover named perils. Homeowners insurance does not provide coverage for floods, earthquakes, mold damage, theft, or any other kind of non-specific peril. Comprehensive auto insurance typically excludes everything from damage due to hail, theft, and vandalism to windshield damage or tire blowouts. To find out what your policy does or doesn’t cover you’ll need to look at your policy contract. Don’t be surprised if you discover there are lots of holes in your protection coverage—happens all the time! This can help you determine how much extra protection you might need on top of a typical policy’s limits.

Can I Get Discounts on My Home & Auto Policies?


If you own both a home and a car or even just one of them, there’s a good chance you’re eligible for some sort of discount. Start by asking your agent if you qualify for any discounts—most insurance companies offer at least one discount on your auto policy for owning a home. Some insurers also provide multi-policy discounts if you have multiple policies with them. If that doesn’t work, ask around—your friends, family members or co-workers might be able to tell you about an available discount they didn’t know about themselves!

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How Do I Reduce My Premium Costs?


Once you’ve determined what type of policy you need, it’s time to reduce your premium costs. One of my favorite ways is by shopping around between competing insurance companies. Most folks don’t realize that most major insurance companies are both licensed and regulated by each state individually, not federally, so there can be huge discrepancies in price between different states (even different counties in some cases). You might also be able to save money by bundling all your policies with one company; in addition to car insurance and homeowners insurance, for example, you could bundle things like health or life policies with your home-and-auto coverage. By finding a company that offers everything you need in one place, you can pay less for better coverage!

Conclusion


Overpaying for insurance is all too common. Most people have no idea how much they’re spending on home, auto, or renter’s insurance. If you find yourself in that situation, consider bundling your insurance policies together into one package with one provider. This can often get you a better deal than shopping around for individual policies from different companies and agents. You might even end up saving hundreds of dollars per year without having to compromise on coverage. When it comes time to renew your bundle—which is typically done annually—it’s important that you shop around again; as rates change frequently, it pays to ensure that you’re still getting a good deal on bundled policies.

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