Rising interest rates, persistent inflation, and high food prices are collectively making Canadians feel a financial pinch. For most people, mortgage and utility payments are the ones that take up the largest chunk of their monthly expenses. But one of the easiest ways to cut down on monthly expenses is to re-evaluate your insurance costs.
Bundling home and auto insurance policies is one way to save money in this department.
Bundling discounts are a way for insurance providers to reward customer loyalty. And for consumers, selecting the same insurance provider for various coverage requirements — like home and auto insurance — gives them the option of reducing their monthly costs and streamlining their renewals and claims.
How does bundling home and auto insurance work?
Sonja Denobrega, vice president of personal insurance underwriting policy at Aviva Canada, says, “Combining policies into a bundle can not only result in savings but can also enable customers to align renewal dates for both policies for ease and convenience.”
She adds that bundling can further benefit consumers as they have to pay only a single deductible if a future claim affects more than one policy. And they save valuable time when submitting a claim to only one provider.
How, exactly, does a bundling discount work, though? Is it applied to just one policy or both?
“The bundling discount is applied to both the home and the automobile policies,” Denobrega explains. And such discounts apply to all private passenger automobiles and motorcycles on the automobile policy and to homeowners, condominium, or tenant packages on the property policy.
How much can you save by bundling home and auto insurance?
By bundling home and auto insurance, you can save anywhere between 5% and 20% with your insurance provider. The amount, however, depends on the provider and the policies you’re bundling. For example, if you bundle car insurance with home insurance versus car insurance with tenant insurance, you might save a different amount depending on the costs of each policy.
One can also opt for insurance bundling by combining more than one policy in the same household or family with the same insurance provider. This is called a multi-policy discount. The best way of finding the bundling offer that saves you the most is by asking your insurance provider and shopping around to find what suits your needs.
“The amount or eligibility of the discount is not dependent on the replacement value of the home or automobile,” Denobrega adds. “Provided that both the automobile and property policy meet the eligibility requirements, the discount will be applied.”
“Additionally, since the discount is applied as a percentage, the total savings will also increase if your premium increases.”
Other benefits to bundling insurance policies
The biggest benefit of grouping your insurance under one insurance provider is the discount. And the best way to make sure you are getting the lowest rate possible is to compare bundled home and auto insurance rates from different providers.
But bundled offers also pay off when it comes to keeping track of your account details, online access, renewal, and payment dates.
Overall, bundling is a great way to save, sort, and stay insured as long as you make informed and well-researched decisions.
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