Summary
Insurance bundling is frequently offered as a way to save money on your insurance products. Bundling is when a policyholder has two or more policies held with the same insurance provider.
- Insurance companies suggest bundling policies with one company to make things easier for customers and the insurer. It’s more efficient to have all policies in one place.
- The amount you save on insurance varies between companies and where you live. Typically, savings range from 5% to 25% on your premiums.
If you have more than one type of insurance policy, bundling your home and auto insurance may be in your best interest. You could save up to 20%* by combining your insurance quotes.
What Is Insurance Bundling?
Bundling is when you have more than one insurance policy with the same company. Insurers often give a discount on premiums for bundling policies together.
Many people have multiple insurance products. Bundling them together can save money on premiums with minimal effort. When you have multiple things to insure, you’ll need separate policies for each item. You can save money by combining insurance for your home, cars, belongings, life, and health (including dental and vision).
These lines of insurance coverage are designed to protect you from suffering a financially catastrophic event. Some insurers focus on property insurance, while others offer various insurance products, including life and health insurance policies.
When you bundle insurance, you are getting multiple policies from a single insurer.
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Why Do Insurers Bundle Policies?
Bundling is when you get all your insurance policies from one company. This means the company gets money from you for different types of insurance. It also saves time and is more efficient for both you and the insurance company.
Consider the many things you must remember with separate policies: various payment dates, renewal times, websites, logins, and more. If you insure your home, car, and motorcycle with different providers, it can be difficult to manage. When you insure all three products with one provider, you can use the same website for payments, policy changes, and claims. This makes managing your insurance easier and more convenient.
Bundling can also save you time if you need to make a claim. If a storm causes a tree to hit your garage and both the garage and your vehicle in it are damaged, you have two claims:
- A homeowners policy claim for the damage to an attached structure (such as the garage).
- An auto policy claim for the damage to your vehicle.
If your policies aren’t bundled, you’ll have to call two insurance companies and explain everything twice.
Can Bundling Really Save You Money?
Yes, bundling can save you money. The benefit to insurance companies is considerable, so it is very likely that you could save money when you bundle policies.
As with any policy, insurers consider a number of factors when setting rates. Where you live, your zip code, your age, the amount you’ve set as your deductible: All of these factors still come into play whether you are bundling policies or not.
Depending on the insurer, you can generally save anywhere from 5% to 25% on your premiums by choosing to bundle your insurance policies.
Because rates can vary substantially from one state to the next, how much you’ll save by bundling can vary, too. Hurricanes along the coast in Texas and Florida and wildfires in California and Arizona have impacted homeowners insurance rates considerably. Bundling in those states might differ as well.
It is also important to remember that your claims history will contribute to your bundled insurance quote. If you’ve had a bunch of moving violations, been in an accident or had recent homeowners insurance claims, the amount you could save on your home and car insurance bundle might be limited.
What Types of Insurance Can I Bundle?
If your insurer offers different lines of insurance, they likely offer the option to bundle them together. This has the potential to save you money. Combining home and auto insurance is the most popular type of insurance bundling, but there are others.
A car and renters insurance bundle is another popular option if you are a renter. Having your property covered with an auto and renters insurance bundle is a smart move, and it might also be required by your landlord.
For some, bundling car and motorcycle insurance might make the most sense. Any family with multiple cars at one address should look into multi-car discounts as part of bundling.
Some insurance companies specialize in a particular type of insurance, such as personal property or health. Others offer a wide range of insurance products that can include just about any insurance product you are looking for, from home insurance to life insurance. Health insurance providers frequently offer health, dental and vision insurance bundles.
How to Get the Right Deal on Bundled Insurance
Looking for the right home and auto insurance bundles doesn’t need to be a chore. Your first step is to speak with an insurance agent, who will have great advice on right insurance for your situation. After all, they are the experts and can advise you on how to get the most out of your insurance.
Although pricing is important, do not overlook your insurance basics. When you compare home and auto insurance quotes, make sure to include all the coverage you need. This includes a deductible that fits your budget and enough coverage for your specific needs.
Home and auto insurance bundle comparisons should follow, once you’ve ensured that the policy quotes you’ve gathered offer similar coverage.
Remember that the best home-auto insurance bundle is one that looks to save you money for the coverage you need. Skimping on coverage or selecting too high a deductible just to try and save money on your premium might seem like a way to save money, but it could be costly if you ever need to file a claim.
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How can I bundle my home and auto insurance?
Bundling your insurance policies could save you money because it is faster and more efficient for insurance carriers, and for you. The more policies that you have under one insurance company, the more you could save.
It is worth taking the time to see how bundling your insurance policies could reduce your premium costs. Just make sure that you are considering all aspects of the coverage that you need when you call and compare your insurance bundling quotes. Contact the team at Rate Insurance to learn more about bundling options and start saving today!
Disclaimer:
*Savings, if any, vary based on consumer’s profile and other factors. Contact your insurance agent for more information. Restrictions apply.
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