Few things are as exhilarating and anxiety-inducing as buying a home. When you make such a large purchase, there’s a lot to unpack (literally and figuratively!). As you tick the boxes on your list of things to do,
homeowners insurance has to be high on the list. In fact, your mortgage lender likely needs proof of insurance before they’ll find the mortgage in the first place.
But have you considered what to do about your car insurance when you move into your humble abode? It could pay off to switch your policy to a new company so you can
bundle your car insurance with your home insurance. Here are the benefits of bundling and how to make the switch.
Why switch car insurance when you buy a house?
Most auto insurance companies offer their products nationwide, so why would you switch rather than just change your policy? The fact is this: your new living circumstances could play a major role in how much you pay for car insurance. You could discover that:
- Your new city or neighborhood has higher insurance rates than your current provider based on traffic or crime rates.
- The insurer may not have home insurance products available, meaning you can’t take advantage of bundle discounts.
- Your new living situation might mean you have a garage or secure parking area rather than being parked outside (which could lower the premiums on your auto insurance policy). Not only is it possible to save money on both car insurance and home insurance when you purchase them from the same insurer, but having the policies in one place will simplify the process if you ever need to file a claim.
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How to switch car insurance
The goal is to keep as much of your money in your own pocket as possible while getting the coverage you need, right? If so, switching your car insurance to a new provider that also carries your homeowners insurance is often the right plan. Here’s how to do it.
Find out when you need to switch
Determine how soon you must change your car insurance policy to reflect a new address after you move into your house. Why does this matter? You don't want to have a gap in insurance coverage simply for not changing your address. The time frame for changing your address varies by state, but it is typically
between 30 and 90 daysfrom when you move in.
If your old policy will lapse in the meantime, you may need to renew with your current insurer and cancel early. Although that could result in a penalty fee, it's far better than having a lapse in your insurance coverage.
By shopping for a new insurer well in advance of your possession date, you could save money on car insurance as well as your home insurance. Depending on the company, they may even have an early shoppers' discount.
Most insurers will offer both home insurance and auto insurance with a bundle discount. Others have additional discounts that can apply to your situation. Before you settle on one insurance provider, compare quotes from multiple options to find out who has the best price for the coverage you need.
That’s where Jerry.ai comes in. Jerry compares competitive quotes from up to 45 providers, ensuring you get the best coverage at the best price.
Determine if there’s a cancellation fee
You might be responsible for an early cancellation fee on your current car insurance policy if you switch to another provider before the end of the policy term. You’ll find those details in your current policy information. Look for penalties, cancellation fees, or short-rate cancellations to find out how much it will be. It might be the best course of action to wait until the end of your current policy term to bundle your car with your new homeowners insurance policy.