Should I Bundle Auto Insurance with Home & Life Insurance
Posted by admin at 1 June 2021, at 11 : 19 AM
If you’ve been shopping for insurance, you’ve probably noticed that a lot of companies offer deals to people who bundle two or more insurance policies. Does that actually make it cheaper than buying insurance through separate insurers?
Let’s discuss how bundling works, the advantages, and the things to watch out for to help you make an informed choice.
How Bundling Works
These days, it seems like you need insurance for everything. Home insurance to protect your house, auto insurance to protect your car, and even life insurance in the event of your death.
While some insurers specialize in one of these types of insurance, there are other companies that sell all of them. They offer discounts for customers who take out more than one policy with them. This is known as “bundling.”
Bundling discounts can apply if you buy two policies or more from the same insurer. For example, you could insure your home and car with the same company. Or you may have two cars in your family, and if you use the same insurer for both, they may offer you a discount.
The Benefits of Bundling
Multi-policy discounts for people who bundle two or more insurance policies can result in significant savings of around 25%.
It’s also much easier to deal with one insurer than with several. For example, most insurers offer phone apps these days for you to manage your insurance. Rather than downloading several apps, you’ll only need one. Similarly, you’ll only need to make one premium payment each month instead of trying to keep on top of multiple bills due on different dates.
If you need to make two claims at once, for example, if your house and car are damaged in a flood, then you only need to make a claim with one company instead of two, which could mean you have fewer forms to fill out and fewer documents to provide.
Why should you be careful with bundling?
It’s worth noting that some insurers use more than one underwriter. This means that though it seems like you’re dealing with one company, your policies are actually held by different insurers so that when you claim on your house and your car insurance, you may need to fill out two sets of forms and provide documents to each underwriter. It’s a good idea to check this when you’re researching and comparing companies.
Remember to compare bundled policies with separate policies too. Sometimes mixing-and-matching insurers can give you a better price than would a multi-policy discount.
It’s also important to keep re-evaluating your insurance at regular intervals. Your life insurance premium won’t change, but your home and car insurance can get more expensive over time, and there may be better deals out there. Though this means losing your multi-policy discount, sometimes the savings are worth it.
Lastly, it’s critical to get the policy that’s best for you, which isn’t always the one with the biggest discount. Certain high-end cars, for example, are best covered by specialized insurers. By reading the terms and conditions of the policy, you can ensure that it covers everything you need.
The bottom line
Bundling your insurances together can make them much easier to manage. Aside from the convenience, the multi-policy discounts can help you save a lot of money. But that doesn’t mean that bundling offers the cheapest option or the best coverage for you. By doing your research, you can find the combination of policies that are most suitable for your needs.