If you've ever shopped around for insurance, you've likely been asked if you want to bundle your policies — in other words, combine your home or renters, auto and life insurance policies with the same carrier. Although you can shop for each policy separately, it often makes sense to have the same carrier cover as many of your policies as possible.
Benefits of bundling
- The discount: Most policyholders bundle because of the promise of a discount. The amount varies by provider but generally ranges between 5% and 25%.
- The option of a single deductible: With bundled policies, your deductible may be cheaper when one event affects multiple policies. For example, if a hailstorm damages both your home and your car and the policies are with two separate carriers, you pay both deductibles. If they're bundled, your provider may let you pay only the higher of the two.
- Less chance of being dropped: If you've made claims or gotten tickets, having your policies bundled with one provider can decrease the chance of being dropped.
When it doesn't pay to bundle
It isn't always better to bundle with one carrier. Here's when it may be better to split your policies up:
- If tickets or past claims make your auto insurance expensive: It may be cheaper overall to buy each policy from a separate provider.
- When premiums increase: Bundling discourages price shopping, which makes it easier for providers to raise rates. Many assume you won't shop around when your policies renew.
- If the policies aren't technically bundled: Some carriers insure part of your bundle through an affiliated company. You may still get a discount, but you lose the convenience of one provider and one bill.
A few tips to consider
Discounts are the main reason people bundle, but never assume bundling is the cheapest option. Your needs and circumstances should decide whether to combine your policies with one carrier.
- Shop for new coverage when your policies renew. Ask for the price of each individual premium as well as the bundled premium, and make sure you compare the same coverage across carriers.
- Ask whether the provider uses a third-party insurance company. You may save money but lose the convenience of one provider and a combined bill.
- Ask an independent insurance agent to get prices from multiple companies so you don't have to do the legwork. An agent with access to many carriers may also find discounts you can't get on your own.
With so many factors affecting your premiums, it pays to shop around for the best rate. Contact Aegis Service Corp. to find out whether bundling is right for you and to take advantage of all available discounts.
