Insurance bundling is when you have two or more insurance products written by the same insurance provider. The most popular bundle is auto insurance coupled with homeowners insurance. Most insurance companies sell more than one kind of coverage and are happy to provide you with multiple policies. This is good for them and good for you too, as they will often provide you with a nice discount if you bundle two or more of their policies. It could be an auto policy bundled with homeowners coverage or something else they sell such as:
- Renters insurance
- RV insurance
- Motorcycle insurance
- Life insurance
- Boat insurance
Why Insurance Bundling is Good for Your Insurer
If, like many insurers, your insurance provider sells multiple insurance lines, they will often offer discounts to policyholders who carry multiple policies with them. For one thing, it’s expensive for them to continually have to deal with customer turnover and have to keep filling the pipeline with new prospective clients. They know that if you’re carrying two or more of their products that you’re less likely to drop your coverage and start shopping again for replacement policies. This is especially true of life insurance coverage, since switching companies could mean new medical exams and other inconvenient underwriting requirements.
Why Insurance Bundling is Good for You
Besides the obvious advantage of dollar savings when bundling policies, there are several other reasons why you might want to consider insurance bundling:
- Bundling saves you time and effort in keeping track of your insurance coverage. It makes things easier to pay just one premium bill rather than multiple bills from multiple companies.
- Bundling makes the claims process easier when your policies are carried by a single provider.
Downsides of Bundling
Just as you should always shop around when looking for insurance and looking at multiple quotes for coverage, you should also shop around when looking for the best bundling deals. Just because a particular insurer offers a great rate on car insurance, their rates for homeowners coverage may be higher than you’d like and bundling the two together may not make good economic sense even with the discount offered.
The best advice is to use a trusted insurance broker with an inside track to multiple quality insurance providers. Let them do the groundwork after they know your insurance goals and then present you with a number of researched options for your consideration.