Insurance Bundling: Does It Make Sense for You?

Everyone is looking for ways to save money these days.  With the higher prices for gas and groceries, some folks struggle to make their paycheck stretch far enough to cover their needs. If you’re looking for ways to cut back on monthly bills, insurance bundling is a great solution. 

What Is Insurance Bundling?

Insurance bundling involves buying multiple lines of insurance from the same insurance company.  The bundle can include home, auto, life, renters, recreational toys, or motorcycle insurance. 

The most popular insurance bundling combinations are:

  • auto &  home
  • renters & auto
  • auto & life
  • home & umbrella
  • auto & motorcycle

Having all of your policies with one company makes things less complicated and can save you some money every month.

Is Insurance Bundling Cheaper?

Bundling insurance policies can provide significant savings.  Depending on the company and the number and types of policies purchased, you could save as much as 15% to 23% on premiums. 

In some cases, however, it may be cheaper to have policies with separate companies. 

For example, one company offers an affordable auto policy, but their homeowner’s policy is more expensive.  Bundling the two policies with this particular company may not provide the savings you seek.

So, take the time to carefully compare rates to be sure you get the best deal for your needs.

Is Insurance Bundling Right for You?

Some insurance providers offer complex bundles to encourage their customers to take advantage of this option.  Depending on the provider, you may be able to insure your home, automobile, boat, rental property, and RV under one policy.  It may also be possible to pay only one deductible.    

You want to make sure the provider meets your insurance needs, so consider the following:  

  • Find out if your policies will be underwritten and serviced by the same provider.
  • Clarify what is and isn’t included in the policies.
  • Look for straightforward payout terms.
  • Don’t let big discounts sway you.  Consider coverage, deductibles and other features.  
  • Compare how the different insurance companies handle claims according to customer reviews.

If you decide to bundle your policies, you’ll need to review your current coverage to make sure it still meets your insurance needs.  Some of your policies may need updating if you’ve added or eliminated items or features over the years. For instance, maybe your home has gone up or down in value, you added sprinklers and burglar alarms, built a new deck, or made any other improvements that can affect your coverage and premiums.

Keep in mind that the purpose of insurance is to provide adequate protection, so don’t compromise on coverage and service just to save a little on premiums.

What Are the Insurance Bundling Benefits?

In addition to saving money, insurance bundling also provides the convenience of working with only one company.  You’ll have an easier time making changes to the policies, filing claims, or getting paid in the event of a loss.  

Some of the most notable insurance bundling benefits are:

>  Stronger Relationship With the Provider

When dealing with one insurance company exclusively, you can build a stronger relationship with the company.  After getting to know you, the representative can suggest options that are most suitable for your various insurance needs.

>  Save Time and Money

All in all, bundling your policies with one provider will save you time and money.  You save time keeping track of all those different accounts and the usernames and passwords. Plus, you’ll have fewer payments to keep up with. 

Furthermore, the insurer benefits from the additional business you give them if you bundle your policies.  To show their appreciation, they may offer special insurance bundling discounts to help you save more.  

>  More Security 

Having all your policies with one company provides greater security.  For example, if you live in a high-risk area, some insurance companies will discontinue your policy if you’ve had several large claims.  However, if you purchase multiple lines of insurance from the same company, they’ll be less likely to drop you. 

Which Companies Offer Better Discounts?

Here are a few examples of multi-policy discounts provided by a few major companies to give you a better idea of how much you can save with insurance bundling discounts:

Insurance Company Bundling Discount*
Allstate Up to 25% 
American Family Up to 29% off auto, up to 20% off home
Nationwide Up to 20% 
State Farm Up to 17%
Traveler’s Up to 13% off auto

*These discounts were found on the insurer’s websites.

As you can see, the discounts vary from one company to the next, so it pays to shop around and compare.

Talk to Sandifer Insurance About Bundling Your Policies 

The best way to determine whether you will benefit from insurance bundling is to speak with an expert.  You have a lot to protect, so you need to make sure your coverage is adequate.  

If you aren’t sure whether bundling makes sense for you, contact Sandifer Insurance Agency today.  We will take a look at your insurance policies and recommend a package that works best for your needs.  We will make sure there are no gaps in your coverage to ensure that you are protected in case the unexpected occurs.

Sandifer Insurance is a family-owned company located in historic Cheraw, SC, and we are proud to serve customers in the surrounding areas as well.  With our 40 years of insurance expertise, you can rest assured that you are getting the best coverage for your needs.  We work with some of the nation’s top insurance providers to find the best rates and coverage available today.  

Whatever your insurance needs, contact Sandifer today.  We’ll be happy to provide a free quote for homeowners, automobile, life, business, farm, or a bundled package.  


Source: – How to Bundle Auto and Home Insurance

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