Combining your car and renters’ insurance in a bundle can lead to potential savings and fewer billing headaches. Many insurance providers offer discounts for bundling policies, which makes managing coverage more convenient and affordable. Knowing how a renters’ and auto insurance bundle works can help you make a smarter decision.
What Is an Auto and Renters Insurance Bundle?
An auto and renters’ insurance bundle combines two types of coverage car insurance and renters’ insurance into a single policy package from the same provider. This setup allows you to manage both types of insurance under one account, often with one payment and one renewal date.
According to Bankrate, the average cost of car insurance is $2,685 annually. Prices vary by state, company and your specific needs. Consult with your agent about prices that best match your unique situation.
Renters’ insurance in Vermont and New Hampshire ranges from $110 to $115 annually on average.
Insurance companies offer bundles to encourage customer loyalty. In return, they usually provide a discount. That means you’ll likely pay less overall than you would if you bought each policy separately. Plus, bundling renters’ and auto insurance makes it easier to keep track of your coverage and handle claims.
What Does Renters Insurance Cover?
Renters’ insurance covers certain unexpected costs if something goes wrong in your rental. It typically includes three main areas of coverage:
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Personal property: Covers items like furniture, electronics, clothing, and appliances if they’re damaged or stolen. Covered events often include fire, theft, vandalism, and some types of water damage.
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Liability protection: Pays for legal or medical expenses if someone gets an injury in your rental or if you accidentally damage someone else’s property.
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Loss of use: Covers temporary living expenses, like hotel stays and meals, if your rental becomes unlivable due to a covered event.
Some policies also include extras like identity theft protection or pet liability coverage, depending on your provider.
Does Renters’ Insurance Cover Car Theft?
Typically, renters’ insurance doesn’t cover car theft. Your auto insurance handles that type of loss, specifically under comprehensive coverage. Here’s a breakdown:
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Stolen car: Covered by your auto insurance
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Personal items stolen from car: May be covered by renters’ insurance
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Damage to the car during a break-in: Handled by auto insurance
How Much Does a Car and Renters’ Insurance Bundle Cost?
Auto insurance and renters’ insurance costs will depend on your contract. The exact amount you save will depend on a few factors:
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Your location
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Your driving history
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Vehicle model
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Credit score
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Marital status
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Extent of coverage
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The value of the items in your rental
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The insurance company you choose
Some large insurers promote even higher discounts when customers bundle multiple policies. These deals can be especially attractive if you already have a car policy and just need to add renters’ insurance.
Again, how much renters’ insurance costs depend on your provider and contract. Work with a local insurance agent to find the most suitable plan for you. These factors may influence the cost:
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Location: Urban areas or regions with high crime rates may have higher premiums.
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Coverage limits: More coverage typically means a higher premium.
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Deductible amount: A higher deductible can lower your monthly cost, but often increases your out-of-pocket expenses during a claim.
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Type of items insured: High-value items like jewelry or electronics may require additional coverage.
Work with a Local Insurance Agent
If you choose a car and renters’ insurance bundle, work with a local agent that can explore all your options first. You can learn more about renters’ insurance here.
This post is for informational purposes. The details and conditions of insurance policies vary. We always recommend speaking with an agent to understand the terms of your existing policies and the policies you plan to purchase.
To consult with an insurance advisor, call 800-392-6532 or email insure@colby-group.com.
