Locations
Key takeaways:
- When you purchase multiple insurance policies from the same carrier, it’s called bundling.
- Insurance bundling can save you money and time.
- Bundling may not benefit everyone, but a good insurance broker can determine if it will help you.
Are you getting the best deal on your insurance? By making one simple move, called bundling, you could save time and money.
What is bundling?
When you purchase more than one type of insurance from the same carrier, like auto and homeowners, for example, it’s called bundling. The most commonly bundled policies are auto and either homeowners, condo, or renters insurance, but you can also combine your auto or home with other policies like boat or RV insurance. Or, you can bundle by insuring both your primary residence and a vacation property with the same insurer.
Your goal with bundling is to get the coverage you need on multiple policies while saving money on your premiums.
What are the benefits of bundling your insurance?
While there are exceptions, bundling typically saves you money. ‘How much’ varies widely, based on where you live, the company you insure with, and what you’re insuring.
And you can save not just in premium costs, but in other ways as well. For example, if both your home and car got damaged by a single incident, like a house fire, you would save if your coverage was bundled because you could file a single claim and pay just one deductible. If you’d had your car and your home covered by different insurance companies, you would need to file separate claims and pay two deductibles.
Discounts for bundling are layered on top of the other discounts for which you may already be eligible. Make sure you take full advantage of all available discounts, including those for safe driving, continuous coverage, and others.
Bundling also saves time because it’s convenient. You could have just one renewal date and make just one payment each month for all policies. Plus, if you need to add coverage or make changes, you can do so with just one call.
Also ask your broker about bundling umbrella coverage with your auto or homeowners policies to provide extra liability protection. When bundled, the cost of the extra umbrella policy may provide better coverage at less cost than a standalone policy with higher liability limits.
Typically, the more products you bundle, the greater the savings. But before you decide to put all your eggs in the same insurance basket, make sure the coverage works for you and your situation.
Are there any drawbacks to bundling?
Bundling is not for everyone and not every insurer allows you to bundle policies. Sometimes the company that can offer you the best auto coverage and rates may not have the best homeowner policy, and vice versa. It’s a constant balancing act, but that’s where your Global Credit Union insurance broker can help.
