Currently, the annual average cost of auto insurance in the U.S. is $1,592. The actual costs depend on factors such as age, location, motor vehicle record, car model, and insurance provider. Irrespective of these factors, you can lower your auto insurance costs by bundling your policies. This essentially means purchasing multiple coverages from the same insurer in order to enjoy bundling discounts. Here’s a look at some great bundling options.
Auto and Home
When you purchase your homeowners and auto insurance policies from the same provider, you’re more likely to get a discount on the premiums. Additionally, the insurer may allow you to pay only one deductible in case you make a claim involving both insurance policies. Apart from being economical, bundling home and auto policies also makes it convenient for you when it comes to paying insurance bills. More specifically, it saves you the hassle of having to pay multiple bills to different providers or even moving from one provider to another in search of suitable coverage. However, bundling may be expensive at times, considering you won’t get to compare rates from different insurance companies. In other words, bundling denies you the opportunity to shop around, something which is essential in your pursuit of lower insurance rates.
Auto and Renters
Unlike the typical homeowners’ insurance policy, renters insurance is somewhat cheaper, considering it only covers damage to your belongings and not the structure of the rented property. The good news is that by bundling your renters and auto insurance policies, you can save even more on your renters’ insurance costs. Bundling makes paying insurance bills both easy and convenient, provided you have both policies from the same insurer. Take note that while bundling may earn you discounts, shopping around may be an even cheaper option, and hence, don’t limit yourself.
Auto and Motorcycle
According to the U.S. State Department, vehicle insurance is mandatory in the U.S. This means that if you own a car, you should at least carry the minimum permitted auto liability insurance. Unfortunately, the insurance company will likely charge you high auto insurance costs if you:
- Are purchasing coverage for a teenage driver
- Have a poor credit history
- Have a poor motor vehicle record
- Are insuring several cars
Additionally, if you own and operate a motorcycle, your insurance costs maybe even higher. Thankfully, by bundling auto and motorcycle insurance policies, your insurer can consider giving you discounts on your premiums. Other than being cost-effective, bundling these two policies can significantly lower your chances of losing your coverage in case you make too many claims within a short period. Specifically, you will have two policies at risk instead of just one, and this will put you in a safer position.
Auto and Umbrella Liability
Umbrella insurance basically provides additional liability coverage beyond the limits of your primary insurance policies. That said, if your auto liability insurance is insufficient, you should consider purchasing umbrella liability insurance from the same insurer. This way, you will save your insurance costs through discounts and be able to pay your insurance bills conveniently.
To get more out of your auto insurance policy, use the bundling options discussed in this article. To learn more about protecting your assets, contact us at Atlas Insurance in Sarasota, Florida, today! Our experts are here to help you insure your vehicles.