How To Combine Coverage On Homeowners And Auto Insurance

If you're reading this article, chances are you have both auto insurance and homeowners insurance, or are planning to have both soon.

And, you're probably interested in the insurance discounts associated with having combined coverage.

 

Having Homeowners and Car Insurance Under One Roof

You can't have a combination homeowners/auto insurance policy, but you can carry both types of policies with the same provider. Research shows that doing so can save you up to about 15% on each policy.

So, let's do some math.

If your auto insurance costs $800 annually and your homeowners coverage costs $1,000, that's $1,800 total in premiums paid. So, you could potentially pocket $270 per year just by having both coverages with the same insurer.

That won't make you rich, but it's $270 you can put to other uses.

However, as tempting as it can be to save money, it's a mistake to sacrifice your coverage with either your auto insurance or homeowners coverage. Doing so could backfire when it comes time to make a claim and discover your coverage won't protect you.

And, even though it's possible to get a decent discount by having both policies with the same provider, don't assume it's the best way to go for your situation. Comparison shop among insurers―it's easiest to do so online―to see if you'd be better off (in terms of rates) with carrying both coverages with one insurer or to having them with separate carriers.

 

Cancel Your Auto Insurance Policy

If you decide to hand over your auto insurance business to the provider that holds your homeowners policy, be careful how you proceed.

Before you notify your current car insurance carrier about the move, make sure the other insurer has approved your policy, received your first premium payment, and knows when you want to begin your policy. Coordinate the coverages so that you're not without auto insurance for a minute; doing so eliminates possible headaches for yourself.

Once your new policy is in place, contact your present auto insurer to inform them about the move and when to end your policy. It's best to wait until near the end of the premium period to cancel your policy.