Sometimes, bundling your homeowners’ insurance with other policies offers some exclusive perks. Sourcing these coverages separately may make more sense in other scenarios. Before bundling your policies, it’s important to examine the potential benefits. Read on for help making a more informed coverage choice.
Understanding Bundling
Generally, people can get multiple insurance policies from different providers. However, bundling is the opposite of that as it involves purchasing various policies from a single carrier. One such example is when you buy your life, car, and homeowners policies from the same insurance company.
Since you’re dealing with only one provider, your monthly premium payments are simplified. Also, some insurers may offer you a discount as an incentive to bundle several policies with them.
When You Have Multiple Policies for the Same Household
You may qualify for a multi-policy discount if you have several policies for your family members. For example, this can happen if you get your teen driver’s auto liability policy from your existing provider. However, the discount isn’t a guarantee with all insurers, so ask your carrier before bundling.
Reasons to Bundle Insurance Policies
Bundling your homeowners insurance and car insurance may make sense if you wish to:
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Lower Your Insurance Premiums
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Simplify Coverage Management
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Keep Your Carrier Despite Filing Multiple Claims
Your overall insurance costs can dramatically come down if you have multiple policies with the same carrier. Some insurers promise up to 25% discount for bundling various coverages.
It’s easier to manage your plans when dealing with only one insurance company, including renewals, filing claims, and setting up automatic premiums payments each month. Mostly, you can complete all these tasks from a single app or website, and you won’t have to share your financial information with multiple carriers.
A high claims frequency may force your insurer to drop you. However, if you have your home and auto policies with a single provider, you’re less likely to be dropped, although this isn’t always the case.
When Not to Bundle Insurance
You shouldn’t buy an insurance bundle if it’s more expensive than buying the policies separately from different carriers. Make sure to compare quotes to see the overall cost difference. Also, bundling may sometimes involve dealing with multiple companies, especially where affiliates are involved.
Important Considerations Before Bundling Your Home and Car Insurance
Consider these key factors if you’ve decided to bundle your policies:
- Don’t buy policies you don’t need for a discount’s sake. Assess your current and future coverage needs before bundling.
- Do some comparison shopping. Sometimes, buying each policy separately from a different provider may be cheaper than bundling.
- Determine who’s exactly offering you coverage. Figure out if the company you’re bundling with has an affiliate.
- Keep reviewing your options periodically. You can compare premium rates every few years to check if there are cheaper coverage options in the market.
Other Policies to Include in Your Insurance Bundle
Your bundling options will depend on your provider’s specific policies. Some carriers will give you a better deal if you bundle boat insurance and RV insurance with them. With others, you get a multi-policy discount only if you bundle your car and home/renters insurance.
Other coverage combinations that may ensure cost savings include:
- Golf cart/segway coverages
- Snowmobile/ATV insurance
Keep these critical points in mind if you’re looking to bundle your insurance policies. Better yet, the experts at Burton A. Harris Insurance Agency can help you find the most suitable homeowners or car insurance plan for you and your family. Contact us today to get started!