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One smart strategy can save you money, time, and hassle when handling insurance: bundling. Insurance bundling means combining multiple policies, such as home and auto, with a single insurer, which can offer both financial savings and added convenience. In this guide, we’ll explore the key benefits of bundling insurance and why it may be the right choice for you.
What Is an Insurance Bundle?
“When you bundle insurance policies, you’re just taking multiple policies and essentially putting them together with one carrier,” says Adam Bakonis, Director, Product Management. “Not only does bundling help you consolidate your insurance in one place, but often you get a discount from your insurer.” Bundling home and auto insurance is most common, but you can also potentially bundle renters, business owners insurance, condo, and umbrella, depending on your insurer.
How to Find the Best Auto and Home Insurance Bundle
Price is definitely important when choosing a bundle, but it shouldn’t be your only factor in deciding whether or not to combine multiple policies. You’ll also want to compare:
- Coverage limits
- Deductibles
- Exclusions
- The insurer’s customer service reputation
- Whether they offer good digital tools, such as an app
- How they handle claims
When Does Bundling Insurance Make Sense?
Bundling may make sense if you’re looking for potential savings, simplified policy management, and more coordinated coverage. It can be especially beneficial for homeowners with multiple insurance needs. However, bundling isn’t always the best option for everyone. For instance, if separate insurers offer significantly better pricing or specialized coverage, it may be worth comparing standalone policies before deciding.
Can Bundling Help With Umbrella Insurance?
Umbrella coverage provides extra liability protection above the limits of your home and auto policies, helping cover large claims that exceed those underlying limits. Say you’re involved in a serious car accident where you’re found at fault. The damages and medical costs for the other party are $700,000. If your auto insurance policy has a liability limit of $300,000, you would be personally responsible for the remaining $400,000. However, umbrella insurance would cover that additional $400,000, protecting your savings, assets, and potentially your home from being used to settle the debt.
Because umbrella insurance usually requires certain liability levels on your base policies, having them with one insurer can help ensure they’re properly aligned. This coordinated approach can simplify underwriting, support eligibility, and create a more seamless layer of protection across your coverage.
Bundling doesn’t just save you money. It also offers several other benefits that simplify your life and enhance your coverage, from streamlined eligibility for umbrella insurance to the convenience of keeping all your policies under one provider. If you’re in the market for homeowner insurance or cheap auto insurance that doesn’t cut corners on quality or coverage, consider bundling with Mercury.
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Benefits of Bundling Home and Auto Insurance
Thinking about bundling? Here’s why you might want to consider it.
Step 1: Multi-Policy Discounts
Bundling multiple insurance policies with the same carrier can lead to meaningful savings, though discounts vary by state and type of coverage. For example, in California, bundling home and auto insurance with Mercury can save you up to 14.9% on homeowners insurance and 14.5% on auto insurance.
Adding more policies may increase your savings. California customers who bundle home, auto, umbrella, and CEA earthquake insurance can save up to 23% on home insurance, 19.6% on auto insurance, and 10% on umbrella insurance. Because available discounts vary by policy and location, check which bundling options offer the most savings for your coverage needs.
Step 2: Simpler Policy Management
One of the biggest advantages of bundling insurance is the convenience of having a single insurer, agent, and account system to manage everything in one place. Rather than keeping up with multiple insurers, you can view and update your coverage through a unified customer portal and often a mobile app for on-the-go access.
This streamlined setup makes everyday tasks simpler, from paying bills and accessing documents to making policy changes or asking questions. Working with one agent or service team also means you have a consistent point of contact who understands your full coverage picture.
Step 3: A More Coordinated Claims Experience
When a single event, like a storm, fire, or other covered loss, affects multiple insured assets, having your policies with one insurer can simplify the claims process. You’ll work with a single company to report and manage related claims rather than coordinating between different providers. This more coordinated approach can help reduce paperwork, streamline communication, and minimize delays that sometimes occur when multiple insurers are involved.
Frequently Asked Questions
Can you bundle insurance policies with different renewal dates?
Yes, insurers may be able to align policies that have different effective or renewal dates.
Does bundling insurance change your deductibles?
No, bundling policies doesn’t necessarily mean they share the same deductible. Each policy usually keeps its own deductible structure, though some insurers may offer options or incentives that affect out-of-pocket costs.
Can you unbundle your insurance policies later?
Yes, you can generally separate or unbundle insurance policies. Before you do, however, be sure to review how unbundling might affect pricing, discounts, and coverage terms.
Adam Bakonis is a Senior Product Manager for Mercury Insurance, overseeing homeowners and landlord products for California. Bakonis originally joined Mercury as a casualty adjuster and has worked in multiple roles, including claims examiner, property field adjuster, claims project and analytics manager.
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