The Benefits of Bundling Your Insurance Policies
Let’s say you need to insure your car, your home, and maybe your business. How will you go about it?
Many people will buy these policies separately, and some won’t mind working with multiple insurance providers.
The issue with separate policies is that you’re actually paying a lot more in premiums than is necessary. Usually, what happens is that you buy auto insurance, but you also want business insurance, and if the insurer doesn’t have a good deal, you shop for it elsewhere.
While such an action is reasonable, you could have confirmed if the company offers different forms of coverage with the opportunity of insurance bundling. That way, you wouldn’t have to go elsewhere because bundling always offers a better deal.
What is Insurance Bundling?
Insurance bundling is when you buy more than one policy from the same provider as a single package with multi-line discounts.
So instead of buying home and auto or business plans separately, they are bundled together for you. It’s a highly beneficial arrangement for both the client and the insurer.
It’s simple. Insurance companies use bundling discounts to attract more customers and to also discourage you from taking your business somewhere else. It also assures them of a long-term engagement.
But what are the benefits of bundling insurance policies for the customer?
Take a look at these benefits of insurance bundling that will make you consider the arrangement:
- Better Rates
Nobody wants to spend more than they need to on insurance coverage. It’s a long-term investment that requires good financial planning for it to make sense.
If you can save something on your policies, it’s more than worth it, and that’s why you probably shop for the best deal you can get.
The thing is, nothing beats a multi-line discount that comes with bundling. Having different types of insurance plans with the same company usually offers the best rates.
As such, before buying a policy, you may want to ask yourself what else needs coverage and if the company offers bundling discounts.
Nerdwallet estimates that bundling can save you up to 25% in discounts on each premium and that the more lines of insurance you opt to bundle, the higher the discounts.
- Easier Tracking
It would be a pain to track and manage policies from different providers because you’re not dealing with one entity. You are more likely to have a hard time checking and updating coverages, tracking insurance documents, and filing claims.
These policy management issues become more frequent with the number of plans you get.
You can avoid the challenges of keeping up with multiple policies through bundling. The arrangement simplifies many things. You will have an easier time bookkeeping and fewer bills to track every month.
- Fewer Complications
Unfortunately, getting a claim settled is never an easy task. There is a process that varies from one company to another. Some companies may have an easy claim process, while others can be a nightmare.
Complications when it comes to settling claims are nothing new in the insurance industry.
Having your policies under one roof reduces these complications because you’re not dealing with different processing guidelines.
- Better Communication
Communicating with multiple agents can be a hassle, especially if you are looking for ways to make certain changes or want to review your policies.
While insurance providers have systems in place to guide their operations, these guidelines vary from one company to another. You may find that your communication with one provider is easier than another.
Also, certain life events may come up that warrant an adjustment to your coverage. You will need to schedule a review with your insurer. If you have all your policies under one roof, you can review everything at once.
Otherwise, you will have to contact and do a policy review with multiple providers, which isn’t just tedious but also time-consuming.
- Adding More Policies
As time goes by, you may need different types of insurance coverage depending on your needs. However, the more policies you buy, the more costly it gets. This can be unavoidable, especially if you run a business requiring multiple forms of coverage.
If you have a bundle arrangement with an insurance company, it becomes easier to add more policies to the package, which continues to offer you more premium discounts.
Conclusion
Combining all your insurance plans under one company can save you some money. It also makes managing and reviewing policies a lot easier compared to juggling multiple carriers.
Before you opt for bundling, however, shop around and compare rates to ensure you’re getting the best possible deal.
