What are the Benefits of Bundling Your Insurance?
September 22, 2022
Ever watched a commercial from an insurance company and heard the word “bundle”? It’s a hot-button topic in the insurance world today, and insurance companies market it as a great way to save money on your policy. At WebFirst Insurance, we want to be transparent with you and make sure you’re informed before you purchase an insurance policy. So, let’s break down bundling insurance.
What is bundling?
Insurance bundling is when you have more than one type of policy with the same insurance company, creating a “bundle” of policies. Some insurers offer a discount for having more than one type of policy with them.
What are the pros and cons of bundling insurance?
Here are some of the pros of bundling.
- More savings. Bundling your insurance policies can save you a lot of money every year. How much you can save depends on the company you work with. Some insurers report that you can save up to 25% in premiums. Having multiple plans with one insurance carrier is one of the best ways to save money and get premium discounts.
- Making things simple. The ease of working with only one provider is another reason some people choose to bundle. You will only need one mobile app, one account, one insurance agent, etc. And you’ll only be receiving bills from one company, not multiple. You can make your payments in one place, file claims in one place, and have all your plans in the same place to view all at once.
- Filing a lot of claims. If you have too many claims on your home or car insurance, you risk being dropped by your insurer. Most are less likely to do so, though, if you are a client in more than one division of their insurance. It’s not a guarantee, but you are less likely to be dropped.
Here are some of the cons.
- Some companies will offer a discount, then raise your rates. Be wary of this; some companies will offer you a significant discount by bundling, and then they’ll start to slowly raise your rates over time.
- Loyalty. This can be both a pro and a con. If you have a great discount on your premiums, and you enjoy the company you’re insured by, then loyalty is a great thing. But if you find you don’t like the company, you may find it hard to switch policies.
Before you Bundle Insurance
It takes work to stay on top of all your insurance costs. Most people don’t bother shopping around when it’s time to renew their insurance. They choose not to consider other options because it takes too much time and effort to research new plans. There are several points to consider before bundling:
Decide on coverage. How much coverage do you need right now? If you pay for more, you are wasting money this year. You might also be wasting money in the future. There’s no guarantee that your needs will increase over time. You can always increase your coverage later if you do end up needing it. Our agents at WebFirst Insurance take the time to thoroughly explain your policy options to you, so that you can make the best decision for your needs and budget.
Compare costs. Compare more than prices within a single company. Look at the cost of separate policy premiums across multiple companies. Then, compare those to any bundles discounts that each company offers. In some cases, buying separate plans from a cheaper company may be less expensive than bundling with a costlier insurer. Our agents give you a wide variety of options for your policy, so that you can pick the best policy for your budget.
Know what you’re getting. Who is actually providing you each part of your bundles plans? If you do not want your insurance bundles through an affiliate, ask about it. You should know what companies you will be working with before you buy anything. At WebFirst Insurance, our agents are completely transparent when going over coverage options with you, so that you can make the most informed decision as possible.
Don’t shop just once. Your loyalty to the company you buy insurance from should not increase just because you have two insurance policies. Do some price shopping every few years. Take stock of whether the plans you have are working for your needs and budget. If they aren’t don’t let having a bundle keep you from looking for a new insurer. WebFirst Insurance works with a variety of carriers, because we know that the needs of our customers are diverse.
What Can You Bundle?
Here are examples of policies you should bundle. For an exact list of what your insurance company has for bundling options, please contact them directly.
- Auto insurance
- Homeowners insurance
- Renters insurance
- Motorcycle insurance
- Boat insurance
- Term life insurance
Looking to bundle your policies? WebFirst Insurance can help. Give us a call, and we can satisfy your insurance needs for your budget.