4 Tips for Bundling Insurance Policies

There’s a significant amount of money to save by bundling insurance policies. The average consumer can save almost $300 when they have auto insurance and fiduciary bond with the same company. While numbers vary by location, bundling is almost always a good idea. Follow these tips to get started on the path to savings.

Know What to Expect

Insurers are there to sell policies, and they like to keep customers around. To keep consumers from switching carriers, many companies offer discounts to those who combine auto, home, and life insurance policies. For an insurer, bundling provides the long-term relationship they want and, for the customer, it can provide a rate that’s up to 25% less than buying policies separately.

Ask About Discounts for Bundling

Most insurers offer significant discounts for bundling business insurance and other policy types. These offers are fairly transparent, but customers have to ask for discounts in many cases. When shopping for insurance, it’s important to ask about all potential discounts, not just those offered for bundling. For example, most insurers offer discounts for vehicle safety features, low yearly mileage, taking certain driving courses, and having a good student in the family. Ask about potential discounts every year at policy renewal time.

Focus on the Total Cost

While bundling discounts is important, customers should focus on the total cost of the package. For instance, the buyer should consider any higher deductibles they’ll pay under a combined policy. If the buyer is unsure, they should consult an insurance professional for advice. By talking to an insurance expert, a customer can easily weigh the benefits of bundling against the higher deductible they’ll pay.

Use Bundling as Leverage to Get Future Discounts

If a buyer currently gets a discount for bundling different types of coverage, they can use it as leverage when they need another kind of insurance policy. For instance, if a person buys a boat, starts a business, or invests in rental property, they may qualify for additional savings on those policies.

Another way to save on insurance is to pay the premium in a lump sum. While this can be unaffordable for some, it can yield a significant discount in addition to those provided for policy bundling. While there aren’t many disadvantages to bundling, doing business with just one carrier can limit flexibility. Therefore, it’s important to shop carefully and ensure the policy is the best available for the money.