4 little-known benefits of bundling insurance

You’ve probably heard that combining car insurance and home insurance saves you money. But do you know how much you can save? Typically the discount is at least 5%, with some companies offering discounts of up to 25%. These discounts represent a significant amount of money that can be diverted to an emergency savings account or other financial needs. However, policy bundling has more benefits than cost savings. Let’s look at a few here.

What is policy bundling?

Insurance bundling means purchasing multiple insurance types from a single insurance company. For example, if you buy car insurance and homeowners insurance from the same company, you are bundling it. As a thank you for purchasing one or more insurance products, insurance companies usually offer discounts. Although these discounts can be very beneficial, they are not the only incentive to purchase bundled products.

1. Convenience

Chances are you have quite a few bills to deal with each month. One of the biggest advantages associated with bundling is the fact that one company becomes your one-stop shop for all your insurance needs. In fact, if you don’t already have life insurance, you can ask your agent about adding inexpensive term insurance to your bundle.

Now, instead of having to keep track of multiple insurance companies, you know everything is under one roof. If you have any questions, please call one of our advisors. If you have any concerns, you know where to go. Bundling makes policy management easier.

2. Fewer agents to handle.

This second perk is Gems. If you’re the kind of person who hates working with salespeople, imagine finding an insurance agent you like, checking out their company, and doing business only with them. By reaching an agreement with the company and tying together policies, you have a trusted person you can turn to when problems arise.

Anyone who has ever experienced an emergency will recognize how comforting it can be to see a familiar face and know that that person can take care of your insurance needs. Imagine your car is totaled, but you escape unharmed. Still you’re shaking and not sure if you’re thinking clearly. While you wait, call your auto insurance company and a representative will be on scene within 20 minutes.

When all of your policies are handled by a single agent, that person is more likely to be invested in every case involving you.

3. There is less chance of being eliminated.

Let’s say you have a teenage driver who was involved in his second fender bender of the year and received a traffic violation. It is the right of the insurance company to exclude you as a policyholder or to choose not to renew when the time comes. However, because the same company has multiple policies, the company will view you as a trustworthy customer and be less likely to drop you.

4. You can also combine your deductibles.

According to the National Association of Insurance Commissioners (NAIC), some insurance companies offer a combined deductible. If your insurance company offers a combined deductible, it means you only have to pay one deductible if both losses are caused by the same event.

For example, if a tornado damages your home and car, you don’t have to pay a deductible for each repair. Instead, you only have to pay one deductible.

If bundling appeals to you, ask your insurance agent about ways to bundle all the insurance you need, from renters insurance to boat and motorcycle coverage. Not only will it save you money, but it will also simplify your life.

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