Examining bundled insurance

Amy Bach, executive director of the United Policyholders consumer group, says you can often get better rates on auto insurance from companies that specialize in that product. "It's more profitable for insurers to sell auto than it is to sell home insurance, so there's more competition for your auto business, and shopping around will generally get you a better deal than bundling," she says. Bach also cautions that some companies are better at insuring cars than homes, so examine the protection level on the home insurance policy before bundling. Before bundling, Sheppard recommends asking for all available discounts. When comparing prices from different companies, make sure the coverage and deductibles are equal. And note this: "It is not always in your best interest to shop on price alone," says Bach. "Quality matters when it comes to insurance, just like everything else."