Separating Auto/Homeowners Insurance to Save Cost

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the explorer
Posts: 3
Joined: Fri Aug 28, 2020 11:49 am

Separating Auto/Homeowners Insurance to Save Cost

Post by the explorer »

First post here. I found this forum when researching refi, and ended up getting a good refi deal, so thanks for all the tips.

I currently have a bundle package of home + auto insurance. I am overpaying for auto insurance with an annual premium of $1,800 for 2 cars, and driving has decreased significantly. Homeowners insurance is about $1,240 annually.

If after shopping for a lower auto insurance premium, how likely is it that the 'de-bundling'/de-coupling the two will result in higher homeowners premium, thereby, off-setting any savings?
davemanjam
Posts: 72
Joined: Thu Aug 13, 2020 11:02 am

Re: Separating Auto/Homeowners Insurance to Save Cost

Post by davemanjam »

Without having any idea of where you live, both seem reasonable.
So, no idea.

I would still shop it around, and after what you find if its close, see what your current company can do for you.
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GerryL
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Joined: Fri Sep 20, 2013 11:40 pm

Re: Separating Auto/Homeowners Insurance to Save Cost

Post by GerryL »

A few years ago I decided to finally shop around for a new auto insurer after repeated, no-cause increases in the premium at Farmers. I opted to go with USAA. But when I asked about bundling my homeowners insurance, I found that it would cost me more because at Farmers I am grandfathered in on their earthquake coverage.

Nowadays, I learned, earthquake coverage is generally (always?) provided by a 3rd party. If I were to leave Farmers, I would not be able to come back with the same deal. The unbundling of auto and home ended up costing less, even though I lost the bundle discount.
petulant
Posts: 1901
Joined: Thu Sep 22, 2016 1:09 pm

Re: Separating Auto/Homeowners Insurance to Save Cost

Post by petulant »

For what it's worth, last time I shopped around, the bundle discount was $400 for a year spread across both policies. That may or may not be a good benchmark for how much you could save bundling when you shop around.
surfstar
Posts: 2522
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: Separating Auto/Homeowners Insurance to Save Cost

Post by surfstar »

We've never been able to beat Geico for auto. Even tried "gabi" and it came back with "we couldn't find anything cheaper." Also, use them [Geico] as a portal for the HO insurance.
Make sure you've signed up for all the potential Geico discounts/associations. Adds up.

There are other similar sites/apps to Gabi now which will try and find you the best price on insurance - might be the best way to go for comparison shopping now.
Topic Author
the explorer
Posts: 3
Joined: Fri Aug 28, 2020 11:49 am

Re: Separating Auto/Homeowners Insurance to Save Cost

Post by the explorer »

surfstar wrote: Fri Aug 28, 2020 12:33 pm We've never been able to beat Geico for auto. Even tried "gabi" and it came back with "we couldn't find anything cheaper." Also, use them [Geico] as a portal for the HO insurance.
Make sure you've signed up for all the potential Geico discounts/associations. Adds up.

There are other similar sites/apps to Gabi now which will try and find you the best price on insurance - might be the best way to go for comparison shopping now.
Tried Gabi and Geico the other day, and it had me saving about $600-700 on the annual auto premium, but the homeowners came out $1,000 more than what I pay now on most quotes. Doesn't seem right, and would end up losing money. :confused
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