What Does it Mean to Bundle My Insurance Policies? Is it Beneficial?

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What Does it Mean to Bundle My Insurance Policies? Is it Beneficial?

People have a lot worth protecting – your home, your car, recreational vehicles, like motorcycles and dirt bikes, vacation homes and even your life.   It’s extremely challenging and time-consuming to shop around for separate quotes for each of your insurance needs.  With so many things to protect, the insurance paperwork and payment schedules can pile up quickly. Maybe it’s time to simplify and consider bundling all your insurance under one provider.  Keeping your policies under one company can save you time and money and it can take some of the inconvenience and guesswork out of insurance coverage. Let’s take a closer look at what insurance bundling is, how it works and what the benefits are.

What is insurance bundling and why does it make sense?

bundleKeeping your insurance together, under one company, will result in less hassle and, potentially, more money in your pocket. In order to secure your business for multiple policies, insurance companies are willing to take advantage of that opportunity and give you a discount on your premiums. Discounts on bundled policies typically range from 10 to 15 percent.

It’s great to save money, but the convenience of working with one company is another advantage to bundling. It reduces the amount of paperwork and simplifies policy management. You don’t have to work with multiple insurance companies and agents and there is only one renewal date to remember. This also makes it easier to contact your insurance company when you need to make a claim relating to your house or your car.

In addition, when insurers have access to all of your policy information, your insurance agent can identify coverage gaps and make the necessary coverage recommendations necessary to fully protect you and your possessions.

The pros and cons of bundling your insurance

Pros:

The biggest benefit of bundling for consumers is discounts. This is an insurance company’s way of rewarding customer loyalty, usually with savings off your auto insurance policy. If you are bundling more than one vehicle and driver, the discounts will be even greater.

Bundling multiple insurance policies can reduce the hassles associated with using multiple agents and companies and give you peace of mind. If you have all your insurance coverage under one company, you have one bill, one renewal date and one insurance professional. This can come in handy when you have questions or need to make a claim. In addition, your agent will know you and your policies and can point out potential risks or exposures.

Cons:

If you don’t do your research and look at a few different companies, you may not get the best price or all the discounts that are available to you. It’s important to talk to your agent each year to make sure your policy is up to date and that any new potential discounts are applied.

Getting married, changing your commute, putting an addition on your home or a pool in your backyard, having a baby or a new driver in the household changes your insurance needs, costs, and discounts. It’s important to regularly update your insurance, even when the policies are bundled to ensure you have adequate coverage.

What types of policies can I bundle?

While the most commonly bundled insurance products are auto and homeowner policies, you can often bundle other types of property/casualty insurance, too. You may be able to bundle insurance policies for items such as:

  • Motorcycles, dirt bikes, ATVs
  • Boats, Wave Runners, and other personal watercraft
  • Umbrella liability coverage

If you have more than one driver in your home, each with his or her own car, a multi-policy discount or a multi-car discount may be available.

A local independent insurance agent can help you find affordable coverage that meets your needs and budget. Unlike a “captive” agent who only represents one insurance company, independent agents can quote the cost of coverage on home, auto, and other policies from several different insurance companies. You’ll not only save money by bundling, but you can find the insurance company that fits your specific needs and offers the most affordable bundled rates.

Financially, bundling makes a lot of sense and provides the opportunity to save a significant amount of money on your insurance bill. Convenience-wise, you will now be working with just one agent and company, and an insurance bundle helps simplify your payment plan and renewals. The right bundle, will help you combine and save!

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