Financial Advice

Insure Your Home & Property


Why You Should Consider an Insurance "Bundle"

Insurance Bundle

Humans are creatures of habit, which is why most Americans choose to purchase insurance for their cars, homes, and more from the same company without doing much, if any, comparison shopping. Likewise, when it’s time to get homeowner’s insurance or renter’s insurance, it’s easy to stick with the same company you already use for car insurance and bundle it because you’re familiar and hopefully comfortable with them. Consider these three ways insurance bundles can save you time and money.

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1. Convenience

Most people appreciate things that are convenient. That’s certainly one reason why bundled packages for things like insurance policies and other monthly bills like telephone and cable TV have done so well. It’s nice to have to work with just one company when it comes to all of your different insurance needs. That means only one phone number to call, possibly paying only one bill per month, and maybe even having just one representative to work with. That convenience saves time. And time is money.

2. Bundling Discounts

Insurance companies love to attract customers that will remain loyal to them for years to come instead of customers who shop around for the best insurance rates every 6 or 12 months. This is why insurance companies offer bundling discounts for customers who purchase more than one type of insurance.

If you shop around, you might find that one company beats another for one type of insurance, say homeowner’s insurance, but is more expensive for another, like auto insurance. However, if you bundled those insurance policies together at the same company, you’d likely be spending less than if you bought insurance separately based on the price of one policy alone.

3. Economy of Scale

Similar to other things in life, buying in bulk can bring down the price per unit. This is called “economy of scale” and it doesn’t just apply to groceries. In fact, this theory applies to your insurance too.

The reason companies are willing to offer a bundle discount is because having both of your policies and offering a discount still nets them a higher total premium than charging you full price on just one type of insurance. That’s why so many companies will work hard to sell you multiple types of insurance together. They can give you a better deal because it’s often a better deal for them.

Consider the Details

Although insurance bundling can save you money on your total insurance premiums, it’s important to consider other factors and read the fine print before bundling your insurance. Before you make a final decision, ask yourself these questions:

  • Have you compared every aspect of the insurance bundles, including features and deductibles? It’s not enough to only consider the premiums.
  • Are you sure the plan you’re considering will meet your needs? Consider how the insurance companies handle claims. Some companies may be superb at handling home insurance claims, but not as stellar when handling auto claims.
  • Do you know what kind of insurance you really need? (As opposed to the insurance they offer?) Make sure you’re not paying for more insurance than you actually need.

Overall, bundling your insurance can result in saving money and time by working with only one insurance company, so it’s definitely worth considering. Many people have been happy with their bundled policies and enjoy the savings. Just be sure to do your homework to ensure you get the best possible value and policy for your money.