From cell phone contracts to Internet packages, bundling is a popular way for companies of all kinds to hook you into multiple services, usually at a discount to you. Insurance companies are no exception, and bundling policies can often lead to significant savings and a streamlined experience for the consumer. But if you don’t read carefully, you may end up with a policy that costs the same or more than maintaining separate policies and really doesn’t save you much time or inconvenience at all.
What is Bundling?
To bundle insurance simply means to purchase several policies for example, home and auto from the same company in exchange for a reduced rate. Sometimes this is called a multi-line policy. Bundling discounts can be all over the map, ranging from five to 25 percent. Generally, bundling major policies (like home and auto insurance) will get you a bigger discount.
Bundling packages don’t just apply to home and auto insurance, either. Some companies will offer modest discounts if you add motorcycle or boat insurance to your homeowner’s policy. If you don’t own a home, combining renter’s insurance with auto or other policies is also an option.
The benefits of bundling for both providers and consumers are pretty obvious. In addition to a discount, customers get the reduced hassle of only having to deal with one company, one agent, one bill, and one service. In turn, companies get more out of existing customers and a lower turnover rate. Another potential benefit of bundling is that you may only be required to pay a single deductible if assets covered under different policies are damaged by the same event.
Convenience and Protection:
When shopping for bundled policies, assess each policy separately and to make sure that they are still getting adequate coverage in all areas – in many cases you may get better protection with packages. Research has shown that the same reason consumers sign up for multi-line policies is the same reason they are more likely to stick with the same insurer year after year once they do, one policy instead of many is more convenient.
Questions about bundling? Call or contact Consolidated today.