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Bundling Insurance Policies for Discounted Prices

By Edited Feb 13, 2014 0 0

Insurance Bundling

Introduction

Do you have home insurance with one company, an insurance policy for your car with another company and health insurance with still a third company?  You may be able to obtain cheap home insurance by bundling your home insurance with one or more policies that you presently carry separately. Many insurers offer substantial discounts for customers who bring them more business. The amount of the discount you receive varies; each insurer features different bundle deals. Also, in some cases, you might not save as much money as you think.

How Bundled Insurance Policies Work

The principle behind bundled policies is actually very simple. When you contract with an insurer for more than one policy, the insurer makes more money.  As an incentive to attract more customers to buy multiple policies, many insurers offer discounts on the added policies or on every policy that customers bundle. Bundling policies relates only to the pricing of your policies, not to the actual individual policies. The terms of each will remain separate even after they have been bundled.

Advantages of Bundling Insurance Policies

There are several advantages to bundling your home insurance with your auto or other insurance policy in addition to cheaper premiums.  You can opt to make a single payment for all your policies, which can save time and reduce the hassle of mailing out multiple checks or scheduling multiple payments through your online banking service.  With bundled packages, one agent can review all your coverage and help you come up with a comprehensive plan to provide the best policies at the lowest price.

Customer service is streamlined with bundled policies. Many customers experience a higher level of satisfaction from bundling insurance policies than with separate. This could be due to the fact that when you have multiple policies with a single company, you develop a closer working relationship with your agent or broker.

 If your area suffers a natural disaster such as flooding or a tornado, you may experience damage to your house and to your car. With a bundled plan, one call dispatches a claim representative to assess both your house and your car, which can expedite the process of reimbursing you or scheduling critical repairs. Your insurer may also waive one of the deductibles involved, which can represent a significant savings. For instance, if your home insurance cover has a $1,000 US deductible and your auto cover has a $500 US deductible, you may only need to pay the $1,000 deductible before your insurance coverage kicks in to cover the damage to both your house and your car.  

Read the Fine Print

Although bundled insurance policies often allow you to obtain cheap home insurance, this is not always the case. Different companies offer different terms with them. For instance, your discount may be discontinued if you drop one or more policies included with your bundle, which would cause your home cover to revert to its original rate. As with every contract, read the fine print before you sign on the dotted line.  And if you have any questions, don’t hesitate to speak up.   

Specifically, many stand alone auto insurers offer deep discounts on car insurance policies in an attempt to attract customers away from insurers that offer bundles. For instance, safe drivers may be able to obtain individual car insurance policies at very low rates. Depending on the deals that are available in your area, you may actually save money with a stand alone auto insurance policy rather than with a bundled.

Shop Around for the Best Rates

The words to a popular song say “you better shop around.” These words were never truer than when you are shopping for cheap home insurance. It is a very good idea to shop around before setting on a home insurance company. Whether you opt for a bundled policy or a stand alone , talk to different agents or brokers about your particular home insurance needs. Check out online insurance websites to make side by side comparisons of several policies at once.  If you are not certain that you want to bundle your home insurance  with another type, there is no rush, despite efforts by an agent to persuade you to sign up. Nearly every company that offers bundling allows you to add polices to your bundle at any time while your main plan is in force.

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