How much can I actually save by bundling home and auto insurance?
Bundling your home and auto insurance is one of the top tips when advising how to save money on your insurance needs, so you’ve probably found that the suggestion pops up over and over again. But, how much does bundling actually save you on your home and auto insurance, and is it really worth it? Let’s have a look at the numbers and find out.
The numbers
So, let’s look at the numbers to see just how much you actually save on the most expensive aspect of insurance for residence of Ontario, auto insurance, when you bundle your policies together. The word online is that you can save in the neighborhood of 10% on your auto when you bundle it together with your home insurance. We had a look at some quotes from various providers using the HUB Insurance Hunter quoter tool to see if that estimate holds true.
In all scenarios, the car/home will be insured by a single 30-year-old female with a G licence and no previous claims or infractions.
Scenario 1
Vehicle: 2014 Subaru Crosstrek, owned and used for personal with 10,000km a year, and collision/comprehensive coverage.
Auto alone: $130.75/month
Bundled with home: $117.75/month
Savings: $13/month
Scenario 2
Vehicle: 2018 Honda Civic COUPE, leased and used for personal with 50,000km a year, and collision/comprehensive coverage.
Auto alone: $156.25/month
Bundled with home: $140.67/month
Savings: $15.57/month
Scenario 3
Vehicle: 2005 Toyota Camry, owned and used for personal with 15,000km a year, without collision/comprehensive coverage.
Auto alone: $75.83/month
Bundled with home: $68.25/month
Savings: $7.58/month
After calculating the numbers on HUB Insurance Hunter, using three different vehicle scenarios, the average savings of combining auto insurance with home insurance is 10%, which in some cases is almost $200 a year.
The pros: discounts and convenience
The numbers show that yes, there is a discount associated with bundling your home and auto policies, and saving money counts as a big pro. But, aside from the money you’ll save, another pro is the convenience of having both policies with one provider. Having both policies under one metaphorical roof makes it quicker and easer to pay your bills and take care of any business regarding your insurance.
The cons: missed discounts and stale policies
When you bundle your home and auto insurance, even if you get some sort of discount, you may be missing out on better premiums or discounts elsewhere. You run the risk of becoming complacent with your provider, stopping you from exploring alternative options, be them better prices or possibly even better coverage to fit your ever changing life.
Is it worth it?
Like with any decision, there are pros and cons you must look at. If your provider offers a substantial discount for bundling your home and auto policies, then it could very much be worth opting for. As long as you stay vigilant with your polices, and ensure that you don’t let better deals pass you by, or allow your policies become stale, it is a wise move to bundle your home and auto insurance together.
If you are looking to bundle your policies together, it is a good idea to shop around for both home and auto insurance and see what prices are available out there for you.