Simple insurance should be easy. Your insurer will extend your coverage if you pay your premiums on-time. Your insurer will cover your medical bills and damages if you are in an accident at fault. The disparity in rates between insurance companies complicates the situation. They can vary greatly. This allows consumers to save significant money by shopping around and comparing prices.
Bundling is another way to save up to 10% on your insurance premiums. Bundling allows you to bring multiple insurance lines – car, life, property, and so on. You’ll usually pay lower aggregate rates if you have multiple lines of insurance – car, property, life, etc. There are many other benefits that you’ll enjoy. These benefits will be described below.
One bill = Less time and Less maintenance
Take a look at how you manage your insurance coverages. There might be auto insurance with one company and property insurance with another. You may also have life insurance with another. A supplementary health plan may also be available. Your business might still be covered. It might be more difficult to keep track of each policy if they are underwritten by different insurers. You are not only required to pay each company but also have to maintain good relationships with them.
You can make one payment if you combine or bundle your coverages with one insurer. This reduces time and effort.
You will find less confusing coverages for your car and property.
Let’s say you have auto and property insurance. However, each policy is underwritten differently by different companies. Imagine that your laptop is inside your car when it is stolen. In these situations, most people call their auto insurance to file a loss claim. They then discover that their personal property is not covered under their auto policy. They call their property insurance company.
Sometimes, property insurance companies are reluctant to cover items left in stolen vehicles. This is typically a misinterpretation, unless there are exclusions. However, it may take time and multiple phone calls to resolve the issue. If both coverages are provided by the same company, it is usually possible to resolve the matter with one call.
Multi-line Discounts from Insurance Companies
Bundling multiple insurance lines is a great way to save money. Many insurance companies offer multi-line discounts to policyholders. If you agree to allow multiple coverages, they will reduce your rates.
If you have auto coverage with your insurance company, it is possible to get a discount by taking out a policy for property insurance. There may be lower premiums for one or both lines. These discounts might also be available depending on which company you are working with.
Are Bundling Your Insurance Benefits Always Beneficial?
Consolidating your coverages under one company has its advantages, but there are also potential drawbacks. Let’s say you decide to change your insurance company. It would be necessary to coordinate the transfer from one company to another. You may also lose discounts because every insurance company is different. Even if your coverage limits or deductibles remain the same, rates could rise.
The downside to underwriting multiple lines is the time required by insurers to consider asset levels, deductibles and other factors. A standard policy, however, is very easy to create. You can usually complete it online or by phone.
Last note: Bundling your coverages won’t save you money. Although bundling your coverages can often result in savings through multi-line discounts and other benefits, it is not a sure way to find out for certain. Compare quotes from multiple insurers. Compare them side-by-side. This is the only way to be certain you get the best coverage for your family at the lowest possible rate.
