Have you heard of bundling before? Chances are, you already bundle your internet and phone service, or even streaming services. It’s an effective way to get multiple services or solutions for a lower price than buying them individually.
What you may not realize is that insurance companies provide bundling options, too. If you bundle your policies, such as your auto and homeowner’s policies, you can experience significant savings.
While bundling is, for the most part, good, if you don’t read carefully and pay attention to the fine print, you may wind up with a policy that costs the same or even more than keeping separate policies. With that in mind, learning more about bundling your insurance can be beneficial.
An In-Depth Look at Bundling
Bundling insurance means buying several policies from the same company to reduce the rate. Some companies call this a multi-line policy.
The discounts offered for bundling vary from one carrier to another. They may range from just five percent to 25% or more. Usually, when you bundle your major policies, such as auto and home insurance, you will receive a larger discount, which means more potential savings.
Remember that bundling insurance policies doesn’t just apply to your auto and home insurance. Other companies would offer you smaller discounts if you had boat or motorcycle insurance to your auto or homeowner’s policy. If you do not own a home, consider bundling your renter’s insurance with your auto or another policy. This is another option to consider.
Benefits of Bundling Your Insurance Policies
The biggest benefits offered by bundling your insurance policies should be pretty clear for both consumers and providers. Along with a discount, customers have less stress. This is because they only have to deal with a single provider, bill, service, and agent.
On the other hand, companies get more out of their current customers. They also see lower turnover rates. Another possible benefit of bundling is that you only must pay one deductible if the assets covered under two different policies are damaged due to the same situation or event.
Protection and Convenience
When you start shopping for bundled insurance policies, be sure to look at each one individually. Be sure you are receiving plenty of coverage for everything. In some situations, you will receive even better protection by packaging everything.
Research has shown that individuals who sign up for these multi-line policies are more likely to stay with the same insurer. One of the reasons for this is because it is more convenient.
Bundling Your Insurance
There are more than a few factors to consider when it comes to bundling your insurance. Be sure to keep the information here in mind, which will help you decide if this is right for you. While bundling won’t always save you money, there are many situations where it can. Be sure to talk to your insurance provider or consider switching to see if bundling may benefit you.