Bunding renters insurance with another type of policy can be worth it – especially if you can use your renters insurance policy to help lower the price of more expensive insurance, like an auto policy.
Convenience is another advantage of bundling. In addition to the discount, consumers with bundled policies can consolidate their bills and bill payments. It’s faster to pay two premiums in one bill instead of paying them separately. Bundling may also offer the benefit of a combined deductible. If there's an incident that requires a claim on both your renters and car insurance policies, for example, you may need to pay only the higher of the two deductibles instead of both.
Despite the potential advantages of bundling, remember that insurance companies offer it to discourage customers from shopping around. It's possible you could save even more money by purchasing individual policies from separate companies. Don't assume that the best deal will come from using one company for all of your insurance needs.
While discounts and convenience are the ultimate goals of bundling, an insurance company’s customer satisfaction is also important. If you’re saving money with a bundle but find the company’s customer service lacking, this is a disadvantage to those bundling savings. United Policyholders cites a 2011 J.D. Power study
that showed consumers who used two different companies for car and home insurance were more satisfied than customers who bundled those two policies. That's because companies specializing in car insurance sometimes offer lower prices and better service than larger competitors that sell many types of insurance. Because renters insurance is fairly inexpensive, whatever you save from bundling might not be worth sacrificing quality of service.
Which Companies Offer Renters Insurance Bundling?
Lemonade is the only insurance company in our ratings that doesn't offer bundling. The others offer the following bundling options:
USAA: Will bundle renters with homeowners insurance if you rent and own separate homes, and will also offer a bundling discount if you add a personal property rider to your renters policy
Erie Insurance: Offers bundling with auto and other types of insurance
State Farm: Offers bundling with auto insurance
Allstate: Offers bundling with life insurance policies, as well as auto
American Family: Bundling options include auto, life, business, and recreational vehicle policies
Nationwide: Offers bundling with life and auto insurance, as well as motorcycle and watercraft insurance
Farmers: Offers discounts for bundling renters insurance with another policy.
Liberty Mutual: Call an agent to discuss bundling options
Travelers: Bundling options include auto, umbrella, boat, and additional personal articles coverage
How U.S. News Evaluated Renters Insurance
We explain what matters most to consumers, experts, and professional reviewers when it comes to renters insurance . Then we provide an unbiased evaluation of renters insurance providers available at the time of review. Our goal is to empower consumers with the information and tools they need to make informed decisions. More information about our 360 Reviews methodology for evaluating renters insurance companies is here