What to Know About Bundling Insurance
Many forms of insurance are available, all designed to help you during rough patches. As long as you pay your premium and follow any stipulations, the insurance should kick in to pay for home repairs, auto accidents, or personal injury. However, with so many policies, having insurance can become a big headache. For this reason, many people choose to bundle their insurance. If you want to know more about bundling your insurance, keep reading.
What Does It Mean to Bundle Insurance?
If you have auto insurance, homeowners insurance (or renters insurance), and life insurance, the premiums add up quickly. You can save money by lumping insurance policies together to create one policy. In some cases, a single insurance carrier provides all the insurance in the bundle, but if they don't offer a type of insurance, they may work with another company.
While you can bundle insurance at any time, major life events often push customers to bundle. For example, if you recently got married, you may benefit from bundling your auto insurance policies.
Similarly, if you buy a house, consider adding other policies. Typically, customers will combine auto and home insurance or auto and renters, but some will add other coverage like life insurance.
What Are the Financial Benefits of Bundling Insurance?
The main benefit of bundling your insurance is that you save money. In fact, just bundling your auto and homeowners insurance could save you up to 20 percent. When you bundle, you may also save money if you increase coverage, such as adding collision coverage and medical pay to your liability auto insurance policy.
In addition, since you will work directly with one company to handle all your insurance needs, you'll often create a better relationship. This may help you work out a better bundle or better deal if you want to change or upgrade your policy.
Are There Downsides to Bundling Insurance?
Bundling does have a few downsides, but most of them are avoidable. When people bundle insurance, they are often so surprised by the discount that they don't compare rates with other companies. If all your insurance is bundled into one company, you may be less likely to shop around when you need to renew the policy because keeping everything together is often simpler.
Naturally, you can avoid this by doing your homework before you choose a company with which to bundle your insurance. However, in some cases, bundling just isn't the right option. For example, if you have a specialty car, such as a high-performance vehicle, trying to bundling that car may end up costing you more, or it may not provide enough coverage.
Do You Need a Special Provider to Bundle Insurance?
You don't need to find a special provider to bundle your insurance. Most insurance providers offer bundles, but you should choose a company that provides multiple types of insurance. This will reduce the risk of needing a second insurance company to pick up the slack.
In addition, each company will have its own pros and cons. One company may have the best discounts, but another may provide better flexibility for your insurance needs. Therefore, before you start shopping, determine your goals and needs.
Insurance premiums can become costly, especially if you own a home or vehicle. Bundling policies is a great way to save money and time. Before you choose a provider, however, make sure to shop around and find the best policy for your needs. If you would like to learn more about bundling insurance or if you would like to receive a quote on a personal insurance bundle, contact us at The Policy Center Inc.
