I’ve spent 35 years covering personal finance, and insurance is one of the few bills almost every household pays twice: once for the car and once for the house.
Car insurance rates have been going up, and the consumer price index for motor vehicle insurance rose more than 20% in the 12 months ending in early 2024, according to the Bureau of Labor Statistics.
When two of your biggest recurring bills climb at once, the question worth asking is simple: are you paying more than you should?
Skip ahead and compare car insurance offers: See if you're overpaying — free, 5 minutes
The stakes are real. You pay these premiums every year, often for decades, so even a modest difference in price compounds into a meaningful sum. One of the most common ways to change that number is also one of the easiest to check: bundling your home and auto coverage, or confirming that your current setup is still the right one.
Why Rates Have Been Rising
Several forces have pushed premiums higher. Cars are more expensive to repair than they used to be: bumpers now hold sensors and cameras, and a minor collision can mean recalibrating driver-assistance systems. Parts and labor costs rose sharply after 2020.
On the home side, severe weather has driven up claims in many parts of the country, and rebuilding costs more when lumber, roofing and labor cost more.
None of that is something you control. What you do control is whether you compare. If you haven’t compared rates in a while, you could be overpaying.
How Bundling Works and When It Can Help
Many insurers offer a multi-policy discount when you buy home and auto coverage from the same company. You could save money by bundling home and auto insurance. You also get one renewal date to track and, often, one company to call when something goes wrong.
Bundling isn’t automatically the cheapest choice, though. Sometimes two separate policies from two different companies cost less than a bundle, even after the discount. The only way to know which is true for you is to price it both ways.
Before you renew, compare. Shopping around before you buy is the clearest way to know whether your current price is competitive. Line up offers for the same coverage and see where you stand. See if you're overpaying — free, 5 minutes
How to Compare Like a Pro
Smart shoppers follow the same few steps:
- Match the coverage. Compare the same liability limits, deductibles and add-ons. A lower price for less coverage isn’t a better deal.
- Price it two ways. Get bundled offers and separate home and auto offers, then compare the totals.
- Ask about discounts. You could get a discount for being a good driver or, in states where it’s allowed, for having good credit. Multi-car, home security devices and paying in full can also lower a premium.
- Check at life changes. Moving, buying a home, paying off a car, adding a teen driver or reaching your renewal date are all natural times to compare.
Homeowners can compare coverage too: Insurify Home Insurance
What to Have Ready
Comparing goes faster with a few documents on hand:
- Your current declarations pages for auto and home, which list your limits and deductibles
- Vehicle identification numbers and approximate annual mileage
- Driver’s license numbers for everyone on the policy
- Basic details about your home: year built, square footage and roof age
With those in hand, you can compare offers side by side and decide whether a bundle, separate policies or your current coverage fits best.
Compare your options in one place. MoneyTalksNews has helped readers make smarter money decisions since 1991, and comparing offers before you buy is one of the simplest habits we recommend. Line up car insurance offers here: See if you're overpaying — free, 5 minutes
Homeowners can also check: Insurify Home Insurance
The Bottom Line
You pay for car and home coverage every year, and after car insurance prices rose more than 20% in a single year (the 12 months ending in early 2024), the price you accepted at your last renewal may no longer be the best one available to you. The households that keep these bills in check have something in common: they compare offers at renewal and at every major life change, and they price bundled and separate policies both ways before they decide. Comparing costs nothing and commits you to nothing.
Check whether you could be saving. See if you're overpaying — free, 5 minutes
MoneyTalksNews is an independent personal finance publisher. We may earn a referral fee from partner services at no cost to you. Our editorial recommendations are based on merit, not compensation.
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