Benefits of Bundling Insurance
Insurance helps protect you and your finances. Chances are, you probably have a few different policies, including a homeowners or renters insurance policy and an auto policy. In some cases, if you’ve purchased your policies from the same insurance company, you may be able to bundle the policies.
Bundling is when you buy two or more insurance policies from the same insurance company. For example, if you own your home and a boat, you may be able to bundle both policies together through your insurer. You may be wondering why bundling may be beneficial for you, and if it’s something you would want to consider. Read on to learn more.
The Upside of Bundling Insurance
Combining insurance policies with the same provider makes sense if you are looking for convenience and cost savings. By combining these policies, you can often save on your premiums and streamline the claims process. You may gain additional benefits as well from bundling, including:
The discount—The amount may vary by the insurance provider, but potentially you can save between 5 and 25 percent on each policy.
One single payment—Managing payments for all your insurance premiums is more manageable when you pay one single premium for your bundled policies.
Convenience—Bundling your policies reduces paperwork and makes your insurance easier to manage. You only have to work with a single insurance provider, which saves you time because you can view your premiums, renewal dates and other information in one place.
The potential option of a single deductible—With bundled policies, your deductible may be cheaper if you have a claim that affects multiple policies, like a hailstorm that damages both your home and car. If you have bundled your homeowners and auto insurance, your provider may let you pay only the higher of the two deductibles. Please note that every plan is different, and this option may not be available for every policy.
When Bundling May Not Be Better
Sometimes, it’s not always better to bundle your policies with a single provider. These are four times when you may decide splitting up is better than bundling:
If you have tickets or past claims—Typically if you have a large number of past claims (or tickets, in the case of auto insurance), your insurance premiums may be expensive. If this is the case, bundling policies may be more expensive than purchasing policies separately.
If your premiums increase—Generally, you don’t necessarily price shop your insurance when you bundle. Bundling can make it easier for providers to raise their rates because customers don’t want the hassle of getting quotes—and providers assume you don’t have time to shop around whenever your policies renew.
If your auto insurance is costly—Auto insurance rates can vary. If your rates are higher because of local risk factors, you may want to separate your auto insurance from your other insurance policies.
Your provider may not technically bundle—Some providers may insure you with an affiliated company. Although you may get a discount with that company, you may lose the convenience of paying your premium with a single provider.
How to Bundle
When your policies are ready to renew, ask for the cost of your premiums and the price of the bundled premium so you can decide if bundling is best for you. Generally, home insurance and auto insurance costs change from year to year. It’s a good idea to get quotes regularly for bundled and separate policies to help ensure you’re getting the best rate possible.
Bundling one or more insurance policies may save you money and simplify the management of your coverages. Wiglesworth-Rindom Insurance Agency can review your insurance policies to see what savings you may be able to realize from bundling your coverages.