Should You Bundle Your Insurance

Car InsuranceIf you have a few family members driving cars, a mortgage, insure other high priced items in your home, and have life insurance, it may be time to bundle your insurance policy. Almost all insurance providers will give you steep discounts on your insurance (sometimes up to 40%). If you don’t own a home, you can also bundle renters insurance if you have it, but the discounts for that kind of insurance bundle are far less steep. 

Why should you bundle?

Bundling all of your insurance policies from your auto to your home insurance saves you money and time. By grouping all of your insurance policies, your billing schedule could become less complicated as your insurance provider will likely allow you to pay for all of your insurance premiums at once. You can also benefit from paying only one deductible on all of our insurance policies, instead of one for your car insurance and another for your home insurance. 

What you should look out for

The reason why most car owners decide to bundle their car insurance with other services is to save money. While the monetary benefits are apparent, you want to make sure that your policies remain up to your standards when you bundle your insurance. It sometimes happens that when bundling services, the amount of coverage you can claim on your car insurance or home insurance goes down. You want to make sure that limits you have on your policies don’t clash with each other or fuse together. For instance, if you have insurance for something like a fire, make sure you are covered for your home and your automobile. 

So why do providers bundle?

If bundling makes it cheaper for you as a consumer to have car insurance, why do insurance providers even bother doing it? Bundling your insurance is more straightforward for your provider as well, and apparently, if you have a bundle with an insurance provider, you’re more likely to stick with them for your car and home insurance year over year. Don’t get too comfortable though, as you’re going to want to check back annually to make sure that your premiums and insurance coverage still makes sense, and that you’re still paying the best rates for your insurance policies.  

Is bundling the best option for you?

When you’re looking to bundle, your insurance policy will roll out the red carpet to try to get you to purchase all your insurance needs through them. However, once you bundle with a particular provider, those benefits can sometimes disappear. You can often find better deals on car insurance by comparing policies annually with different providers. Even if you’re happy with your insurance provider, make sure that you keep tabs on how insurance prices are changing. You can always renew your insurance or switch providers if the price is right. 

Bundling your insurance policies can be nerve-wracking, but it’s also great to become familiar with a particular insurance provider. The best part of bundling is, if you don’t have any interest in shopping around for your car insurance and home insurance policies, it can be convenient. 

Picture by Bhargav

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