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Should You Bundle all of Your Insurance Plans Under One Insurance Company?

By Edited Oct 27, 2015 0 0

Should you bundle all of your insurance plans under one insurance company?

First of all, what does it mean to bundle all of your insurance plans under one company? To put it simply, it means to have one insurance company take care of all your needs. Whether it would be auto insurance, casualty insurance, health insurance, life insurance, and property insurance, they would all be taken care of under one provider. This may sound a little scary, with all of your needs being taken care of by one provider, it may seem like somewhat of a risk. In all actuality you can save yourself some big money if you decide to bundle all of your insurance plans under one company.

Of course you first have to make sure that your insurance company can indeed provide the care for all the things you need it to. You may have to change providers if your current insurance provider does not, after all. A lot of people never change their insurance company. Some remain with the same insurance provider that their parents had used. A lot of people do this out of fear or just plain laziness. If you want to save big bucks, however, you will have to get brave or get motivated to get you act together. Those that do change their insurance providers do so because of some promotional money saving scheme, but in the end it really only saves the person a few dollars here and there. This is often done without any real research in the long term for the customer’s well being.

A lot of people who end up owning their first home often get their homeowner’s insurance in a similar way as stated above. Usually it is because their real estate agent had pointed them in that direction. The same goes for many other types of insurances. Customers end up going with certain insurance companies due to their laziness of not wanting to search for something better, or because of some preliminary savings agreement. Due to the way people end up getting their insurance for all their needs, they end up with a collection of different insurance providers instead of just one or two, just because of the happenstance ways of getting them all together.

It is not really a bad thing, but it does have certain drawbacks here and there. It generally means extra bills in the mail and then you will have multiple companies you have to send your hard earned cash to, instead of just one. There is also the great possibility of paying too much for combined insurance premiums. If you are smart, you can save money by bundling your insurance providers.

There are many big insurance companies that try their best to gain the attention of just a minority of people in the market. That is why the change their prices to accommodate who they are looking to attract. The people they initially try to attract are the ones that need insurance for their vehicles, homes or even their lives. Of course there are other things that they go after, but those three are the main ones. If you are only looking for one of those things, then it will be easy to find another company that can beat their rate prices if you are just comparing the one individually. The main companies do not want to have customers that want to jump ship every so often for better deals that will only save them a handful of bucks in the long run. They want loyal customers that will stay with them for the long haul.

So in order to get their customers to do this, they give great deals to the people who will use their company for all three of the big ones instead of using just one. People who tend to go with only one type of insurance have other things that they need insurance for and so will pay more than average in combined annual premiums than a person who decides to only insure one thing. Many of the companies will try and get people hooked by offering up discounts for clients who need more than just a single type of insurance. You will end up with a cheaper rate if you end up insuring more than just say, your car, and add your house into the mix then if you had them insured under different companies, even if they appeared cheaper at first glance. Even if you have more than one vehicle or person with a life insurance policy it will be cheaper to bundle.

When you do use bundling you can save a great deal but keep in mind that it also has to do with the value of your house, cars, your driving habits, your own personal health and other things like that. Most of the larger insurance companies that do offer bundling do not compete in price so much as other insurance companies. When you do bundle with just one insurance company, the company itself will end up good with economies of scale which will allow for more discounts. Since they will be getting a larger portion of your money thanks to bundling, they can then in turn charge you less on the whole.

As far as life insurance goes, it may be difficult to change polices. Sometimes you just plain may not be able to. So many different things factor in and so it can make it very hard to change your policies to another provider. That is why most big insurance companies state that their life insurance sales are among the most important in their collection.

Insurance companies will usually give discounts to their current costumers because it costs them more to process new costumers on a constant basis. Client turnover can be pricey for the companies and so they prefer their costumers that bundle with them and stay with them for the long term. So if you do bundle all of your insurance policies with just one company, it can save you a lot of money then having a variety of companies vying for your various needs.

Another plus in bundling is the simple fact that since you will only have one insurance company handling all of your needs, that means you will not have to fiddle through all the paper work from multiple companies sending you their bills. So in the end it seems that bundling your insurance policies have more positive things to go for it than it does negative. The hardest part will be securing or changing your life insurance over to a company that offers bundling. It seems that having all of your insurance policies done by a single provider will not only save you money, but it will also save you valuable time.

In the end there is not much else one could ask for. It is just important to do your research and know just what exactly you are getting involved in and that your company will allow you to bundle. If your insurance provider allows you to bundle it seems that it is the wisest and best course of action. Just remember to be patient and always know what you are getting yourself involved in.

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