Insurance Tips - Save On Insurance By Bundling

Is Bundling Your Insurance Worth It? Tips On How To Really Save On Insurance

When creating a budget, insurance is one of the larger line items in your expenses.  Some people recommend that you plan to spend 10-25 percent of your income on insurance, which includes car, home, life, and health insurance. 

Are you looking to save money on your home and car insurance premiums? 

One of the most common ways to save on insurance is to bundle your policies, but is it really worth it?

Here are some tips on how to really save on insurance.

Why Bundle Your Insurance?

When you purchase insurance, you can choose to buy each insurance from different companies or purchase insurance from the same company. If you purchase policies from the same company, it is known as bundling. You may get a discount if you bundle your home and auto insurance together depending on the company. 

Some insurance companies offer a 5-25% discount on bundling policies. 

Your homeowner’s insurance premium will get the bigger discount since the value of your home is most likely far greater than your car. Some companies do not like to sell just homeowner’s policies, so the rates for just a homeowner’s policy is typically higher than if bundled with car insurance. 

Pros of Bundling Insurance

The biggest benefit of bundling your policies is the discount. These savings vary by company, so ask your agent. 

Another benefit of bundling your policies is that your agent can review your coverage in one session. You can manage both policies on the same portal since they are with the same company. Having your policies together may lower your chances of getting dropped by your insurance company as long as you don’t have several claims or auto violations. 

Cons of Bundling Insurance

There can be some cons to bundling if you are not careful. It may actually not be a good deal for you if your car insurance rates aren’t too expensive with another company. This is why it’s important to talk to your agent and shop for the best prices and coverage. 

If bundle your policies, you may not price shop as much. This makes it easier for your rates to gradually increase without you noticing. 

Some companies may set you up with an affiliated company to “bundle.” This means you can’t manage your policy from the same portal or website. Make sure your policies are both with the same company and not an affiliate if this benefit is important to you. 

Ways to Get Better Bundling Deals

Compare your bundled rates with various companies. An independent agency can quote multiple companies for you. Agents that sell for one company exclusively can only quote that company.  

Be sure to regularly shop insurance. Don’t always go by price alone—make sure you are quoting the same coverage and adequate coverage. You can quote them bundled and unbundled to see the difference. 

Check with your agent that the insurance company does not use a third party or affiliate. If the company uses an affiliate, you lose some convenience of dealing with one company. The savings may not be as appealing if that’s the case. 

Other Ways To Save Money On Home Insurance

There are some other ways you can save money on your homeowner’s insurance. One big way to save on your home insurance is to raise your deductible. If your deductible is $500, raise it to $1,000. This will lower your premium. 

Check on discounts with home safety devices such as security systems, smoke detectors, deadbolt locks, and other alarm systems. Not every system qualifies for a discount so talk to your agent. 

Look into other available discounts. Some discounts vary per state, but talk to your agent about discounts like professional associations, retiree discount, and work from home. If you are retired or work from home, some companies offer discounts since you are home more to prevent disasters and theft. 

You can also talk to your agent about making your home more resistant to natural disasters such as windstorms. You may be able to save on your policy by adding features such as stronger roofing materials, storm shutters, and other reinforcements. You can also modernize your electrical, heating, and cooling systems to reduce risks of water and fire damage. 

Other Ways To Save Money On Car Insurance

You can also save money on your car insurance by increasing your deductible. You just need to make sure you have enough money set aside to cover the higher deductible if you have an accident.  

Take advantage of some available discounts. If you don’t drive far to work or work from home, you can save with low mileage discounts. You can also save money if you don’t have traffic violations on your records or take a defensive driving course. 

If you have an older car that is worth about less than 10 times your insurance premium, you may not want to have collision and comprehensive coverage. Check your car’s value on sites like Kelley Blue Book and talk to your insurance agent to see if it’s cost-effective. 

If you stay with the same company for a long period, you may also get a loyalty discount. You should also maintain a good credit score because that can also save you money on insurance as well as loans. This means you should check your credit regularly and look for ways to improve your score.  

Ready To Save On Insurance

Bundling is one way you can save on insurance. It’s also important to shop around and review your policies regularly with your insurance agent. Check to see if you can raise your deductible, take advantage of discounts, and secure your home for additional savings. 

If you are looking for an agency to help you find the right insurance coverage for you, contact us today for a quote. We work with multiple insurance companies and can help you get multiple quotes to make sure you find the best policies for you and your family.  

Leave a Reply