Does bundling affect my deductibles?

Deductibles remain separate for each policy, but some insurers offer deductible savings programs for bundled policies.

When you bundle your home and auto insurance policies, it typically means you're purchasing both types of coverage from the same insurance provider. Although this often results in a discount on your premiums, it's important to understand that your deductibles for each policy—home and auto—remain separate. What this means is, if you have an incident that requires you to file both a home and auto claim, you will need to meet the deductible for each policy individually. However, to sweeten the deal, some insurance companies implement deductible savings programs as an incentive for bundling. These programs might offer reduced deductibles if you have multiple policies, or they might decrease your deductible amount each year you maintain your policies without a claim, essentially rewarding you for your loyalty and good record.

Imagine Sarah, who owns both a home and a car. She decides to bundle her insurance policies to save money. Her insurer offers a $500 deductible for her home insurance and a $300 deductible for her auto insurance. Sarah gets into a minor car accident just a week after a severe storm damages her roof. She calls her insurer and files claims for both incidents. Despite the savings from bundling, she learns that she must pay both deductibles separately: $500 for the roof and $300 for the car repairs. Although her premiums are lower due to the bundle, the deductibles are still separate. Luckily, Sarah opted into her insurance company's deductible savings program. For each year she doesn't file a claim, her deductibles reduce by $50, providing her an incentive to maintain her bundle without further incidents.

If you're considering bundling your home and auto insurance, it's a good idea to inquire about any available deductible savings programs. Even though you'll handle your deductibles separately, these programs can offer significant benefits, such as reduced deductibles for incident-free periods. Be sure to discuss these options with your insurance provider. And remember, maintaining a clean claims record not only helps in future savings but can also enhance your eligibility for these deductible rewards. Always compare different insurers' offers to find the best bundling benefits for your needs.