Canadian households have been feeling the squeeze from all angles as the price of food, gasoline and energy are rising. With Canadians looking for avenues to cut down on monthly costs, re-evaluating how we insure ourselves can offer real money-saving alternatives. By bundling home and auto insurance policies, you can lower one of your biggest monthly expenses. Bundling with one insurance provider lowers your costs on all products. Let’s examine the benefits of bundling your insurance to help cut overall insurance costs.
What is bundled insurance?
When you bundle your insurance, you will have multiple insurance policies with the same company. A typical bundle will combine home and auto insurance, but you can also bundle other vehicles and buildings. This can include your motorcycle with your RV or cottage. Insurance carriers like when they insure more than one asset in a family and reward you for choosing to do so. Savings differ, depending on your circumstances and the insurance companies, but it is not uncommon to reduce your spend by upwards of 15-20%.
Advantages of bundling your insurance
There are so many advantages to bundling your insurance, such as:
- Receive a better discount. You will pay less on all protection that you add to your policy.
- Deal with one insurance company. Knowing who to call with questions, concerns, or if you need to file a claim, is reassuring.
- Combine your bills and payment statements. Make one easy payment. You’ll get one package in the mail and one payment schedule for both premiums.
- You can have a single deductible.
- You can more easily identify any coverage gaps.
- Bundle your policies, even with different renewal dates. You can add your second policy in advance of the renewal date and lock in the quoted premium.
What is the difference between dual, multi-policy and multi-vehicle discounts?
In Canada, it is difficult to carry on with daily life without needing insurance. If you drive a car, you legally require car insurance. Mortgage lenders typically require you to have home insurance, as well. Most insurers provide multiple options for combining different types of insurance. Many start with bundling car and home policies. Over time, as your needs change, you have the option to make changes, such as:
- Dual\multi-line\combined policy discounts. Applied when two different lines of business are bound with the same company (typically home and auto.)
- Multi-vehicle discounts. Applied when there are two or more vehicles on the same policy OR if there are two auto policies in the same household. This applies even if there are differently-named insureds with the same company. Multi-vehicle discounts are usually capped at 10%, but you can speak with an isure broker today to understand the rules of each company.
How much can I save by bundling my home and auto insurance?
If you are wondering what type of savings you can enjoy by bundling your home and auto insurance premiums, let’s take a look at what they cost separately. The average cost of car insurance in Ontario is $763 per year for minimum coverage, and $2,098 for full car insurance. Therefore, this makes the average auto insurance cost in Ontario $1,634 per year. Most drivers pay in the range of $1,300 to $1,800, annually. Rates vary depending on your location, the type of vehicle you drive, driving history, and many other factors.
The average Ontario home insurance costs come in at approximately $1250 per year. However, depending on your home value and location, you can expect to pay anywhere from $700 to $2,000 (or more) annually for house insurance. How much you can save depends on your insurance provider. Other factors that will help determine your savings are the types of insurance you have, policy limits, add-ons or endorsements, claims history, and more. The more types of coverage you combine, the less you will pay. Cost savings vary based on the insurance product.
By bundling your home and auto insurance premiums, in some cases, you can see a 20% savings. Therefore, by combining the average auto and home insurance premiums together and applying the 20% discount, you can see savings of around $576.80 annually!
Is it cheaper to bundle my auto insurance with a home insurance policy?
Yes, you may save more money on auto insurance by bundling it with another policy. Sometimes, you may save even more if you bundle your policies all at the same time. The amount of the discount will be dependent upon your coverage needs. Some customers may save hundreds of dollars!
Are there situations where bundling home and auto insurance policies is NOT a good idea?
It is possible. If you have two great policies with separate insurance providers, it may be in your best interest not to bundle. If you combine, you may lose some protection or loyalty discounts. Speak with your isure broker today and review your options. Make the switch and combine only if it makes sense for you to do so.
Request a property quote, even if you do not own a property!
This may not be something the average broker will tell you, but even if you do not own a home or condo, you might still qualify for the multi-line insurance discount with a tenants’ policy if you are renting. Renters insurance is fairly affordable and in addition to the benefits of having coverage, you will also begin to build your insurance history. This is especially important if you have just moved out on your own. This will assist you in securing cheaper home or condo insurance when you are ready to purchase that type of policy in the future. Additionally, you will receive much better rates having property insurance history as tenants versus having none at all.
Remember, it doesn’t hurt to get a quote; you have nothing to lose and money to gain! Call us today for a free quote or click here to fill out our form now.
