Let’s take a closer look at some of the pros and cons of insurance bundling.
- Insurance bundles can save you a significant amount of money. Discounts vary by company and policy type, but many policyholders find that they save as much as 16 to 25-percent on their monthly premiums when they choose to bundle. This is the biggest reason that most customers opt for a bundled plan.
- Bundling your insurance together makes it easier to access everything in one place. Rather than having several different log-in names and accounts, you’ll be able to see all of the critical information you need about your policies in one convenient location under one umbrella account.
- Many people with bundled plans say it’s easier to file a claim this way. If you need to file a claim for any reason, you can do so directly through the insurer. This could be particularly helpful if your home and vehicle were both damaged due to a fire or natural disaster, for example.
- If you own your home, bundling is especially beneficial since this type of policy tends to offer the highest level of discounts.
- Bundling your insurance plans may discourage you from shopping around in the future. Sometimes, people get too comfortable with their new bundled plan and don’t continue to look around for more discounts or make changes to their policies as their needs change.
- Suppose you have a poor driving record (such as one too many accidents or speeding tickets). In that case, bundling might not be as beneficial since your auto insurance will probably continue to have higher premiums regardless of whether you bundle or not.
- It’s not always cheaper to bundle. Sometimes, your current policy for each thing you need to cover could still be less expensive than if you were to bundle them together. That’s why it’s so important to make sure you compare prices across several plans and several insurance providers to be sure.
- Some companies may continue to lower your premiums as time goes on as long as you don’t file any claims. However, other companies can slowly raise your premiums each year, which could eventually outweigh the savings you received when you started the bundled policy.
- The more valuable your vehicle is or, the larger your home is, the less you’ll save since it costs more to replace or repair high-cost items and property.
- You cannot bundle health insurance together with any of these other policies.
This article is the third of a four-part series.