family thinking about insurance bundling

Insurance Bundling Benefits: Top 4 Reasons to Combine Your Insurance Policies Under One Carrier

Did you know you could save money by bundling multiple insurance policies together?

Several carriers offer discounts when you purchase multiple policies through them. Common insurance needs include home, auto, and life insurance. Learn about the top four benefits of insurance bundling to understand why you want to take this approach to your insurance needs.

Top Benefits of Insurance Bundling

Insurance doesn’t have to be complicated. Instead, make things easier with bundling. These key advantages lie in bundling your insurance policies with one provider.

Save Money on Premium Costs

The top benefit most customers can agree is the best reason for bundling is the money you save. First, determine all the various types of insurance that you require. Common needs are homeowners policies, auto insurance, and life insurance policies. Many insurers offer a wide range of policy choices, including motorcycle or RV insurance, renters insurance, and numerous other specialty areas (musical instrument, pool, jewelry, etc.). Find out which types of insurance your chosen carrier has and ask about multi-product discounts. 

Bundling auto insurance with homeowners insurance is one of the most popular combinations. 

Many customers find that the amount of money they save when they bundle their insurance policies is quite substantial. Discount availability and amounts vary greatly between carriers, but it is not uncommon to save 15% or even more on the total cost of your premium. These savings are great news for your budget. You can even use the extra money to purchase the additional coverage you need to insure your home, car, or other assets fully. 

Manage Policy Claims Easily

If you find yourself in a situation where you need to make a claim on your insurance policy, the last thing you want to deal with is hassle and uncertainty. Having all of your policies bundled under one provider means you only need to call one number to get in touch with your agent and explain the scenario once. The insurance company then takes care of all the various aspects of the claim. 

Online accounts often allow you to file a claim on the website or app by logging into your account. They even provide updates and let you track the status of your claim, so you are never left wondering what is happening. 

Save Time

Instead of tracking multiple renewal dates, contact numbers, and online passwords, simplify your life by keeping all of your insurance policies under one universal provider. This way, you need just one online account to view and manage all of your policies. 

It’s a fast and convenient way to pay your premiums, view policy dates, and get copies of your current policy documents. Many insurance carriers also allow you to set up AutoPay to eliminate the worry of forgetting to submit a premium payment on time and avoid the necessity of logging in to your account to make every payment. 

Build a Better Relationship with Your Insurer

Infographic of family thinking about insurance bundling

When you bundle your insurance and work with one insurance company, you start to build a closer relationship with the experts in charge of your account. Your assigned agent gets to know more about you, your lifestyle, and your insurance needs. They can use the knowledge and insight they glean to make recommendations and point out any gaps in your policy that put you at risk. Over time, you establish trust and the ability to streamline the insurance process as you become more familiar with the company and your agent. 

Carriers often reward the loyalty and trust you show by choosing them to provide all of your necessary insurance. Once you purchase your policy and prove yourself a customer in good standing by paying bills on time, you might find that you are eligible for additional rewards and benefits from your status as a preferred customer. 

Downsides to Consider

If you aren’t careful, your efforts toward insurance bundling may not yield the positive benefits you expect. Watch out for these potential risks so you can avoid making mistakes and choose the policies and terms that are the most advantageous.

Price per Policy

Just because you receive a discount for bundling your insurance policies doesn’t mean that the overall value is high. Look at the terms and rates of each individual policy. 

Some insurance carriers have excellent rates for one type of insurance but tend to be expensive with others. In these cases, the bundling discount doesn’t outweigh the higher cost of the original policy. Do your research and compare quotes to get an idea of what your baseline premium is across multiple carriers before you commit to one. 

Coverage Quality

You may notice less flexibility in the policy types and terms you have access to when you decide to bundle. In these cases, the overall quality of the policies you have to choose from could be poor. Don’t settle for less coverage than you need or a higher deductible just to take advantage of a discount for buying more than one policy from a single insurer.

That said, finding a good balance that provides quality coverage and savings is certainly possible to make insurance bundling a compelling tactic to consider. You must also find out where your insurance company’s strengths lie. Do they offer consistently high-quality customer service across all policy types and claims? Some may have a better reputation in one area and a history of poor performance in others. Ask questions of the carrier and browse reviews and testimonials of other customers to get a good sense of what to expect. 

You can upgrade your insurance coverage and get access to incredible discounts at any time by exploring insurance bundling options. In addition, certain life events, such as buying a home or getting married, are other good opportunities to expand your coverage or look for better terms. 

Pay close attention to the terms of your bundled policy. Examine each policy’s details to ensure you are saving money without reducing the amount of your coverage or raising your deductible. When done the right way with careful research and quote comparison to find the exact policies and coverage limits that are best for your needs, bundling your various insurance policies together is a smart solution.

Related: The 12 Biggest Homeowners Insurance Mistakes

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