Bundling Insurance Policies
Published: April 13, 2018
Updated: May 15, 2018
CATEGORY: Bundling Insurance
The termInsurance Bundlingrefers to a situation whereby a consumer buys more than one insurance policy with the same insurance company – for instance home and auto insurance. Normally, insurance firms provide more than one insurance policies; this makes them interested in selling multiple products to one client. In a bid to encourage customers to purchase more services from them, insurance companies often sell many products in a bundle which offer some discount – also known as multi-policy discounts or combined policy discounts.
Many insurance companies have a tendency to sell auto and home insurance products; they may also offer bundles for policies such as motorcycle insurance, boat insurance, RV insurance, seasonal home insurance, etc.
Insurance firms want to sell home and auto insurance to you by “bundling” two or more policies together – and in addition offer you a discount on your annual premium.
Savings on bundled insurance would be on average, about 20%, which is very important when the average auto insurance bill is almost $1,000 per year, depending on what it includes, such as your driving record and lots of other factors.
Some websites will even ask if you want to bundle your insurance policy. Make inquiries about other discounts, such as for the military, teaching and nursing professions.
Clients who bundle their insurance policies are more likely to file fewer claims, which will end up saving the insurance company more money in the long term. Insurance firms love customers who remain with them and do not file any claims.
Another advantage is that when you bundle all of your insurance policies with one insurer, it becomes easier for you to manage them, all in one place. When you register for an account with your insurer you can pay your bills quickly, manage and track your claims; you can also update your policies at any time of the day.
When you are shopping for insurance, it is imperative that you consider the bundle discountsoffered byyour insurance firm. A bundled insurance can save typically 15-20% on the premium of an insurance policy, however, many casualty and property insurers offer these discounts. This makes it more important to first of all get insurance quotes from your insurer. Calculate the savings you should get from the bundle after getting the quotes, rather than go to the insurer that claims to offer the biggest discount.
Get a free quote today if you are interested in saving on your auto insurance. Find out the lowest car insurance rate across different insurance firms while saving hundreds of dollars each year on insurance.