Odds are you’ve heard the term “bundling your insurance” in one of those insurance commercials on TV. And, if you’ve been paying careful attention, you know that buying two policies from the same insurance company — like your car insurance and your homeowner’s insurance, for example — can save you a bunch of money on your monthly premiums.
In fact, Consumer Reports recently did some research on bundling and found that the average policyholder saves $97 per year just by bundling their home and auto insurance. Experts around the industry say you can count on at least a 10% discount if you bundle, but your specific situation will dictate how much money you save. So, if you’ve got a great driving record, for example, you could end up saving way more than that.
The best part? Insurance companies tend to be very competitive when it comes to bundling. They know they’ve got to work hard to beat out the other guys, so consumers wind up as the winners.
But there are some other big perks to bundling. Those premium savings may get all the attention, but they’re not the only reason that you should tell your insurance agent to bundle your policies.
Another big reason to bundle is to save money if you ever have to file a claim. For example, some companies will only charge you one deductible if you have multiple assets damaged by a single event. So, if both your home and car were damaged during an earthquake, you’d only have to pay one of your deductibles to get everything fixed. Considering that most deductibles range from $500 to $1,000, that’s a lot of money to save!
Just remember that you still need to shop around. Bundling is so common in the insurance world that you’ll need an agent to check out all of the different options before you sign on the dotted line. Otherwise, you might miss out on additional savings!
And in addition to saving you money, bundling your car and homeowner’s insurance policies comes with other conveniences. One of the biggest? One single bill every month. Instead of waiting for two bills to arrive in the mailbox or dealing with two online banking transactions, you can pay both premiums with one piece of paper or one mouse click.
You’ll also only have one renewal date to worry about, which makes managing all of your different insurance policies much easier.
Plus, having both your car and your home insured with the same company means that you only have to make one phone call to get all of your questions answered. In a world where it seems like there’s never enough time to get everything done in a day, this can be a big bonus!
And, of course, you can still customize your policy when you bundle. So, if a certain type of coverage doesn’t seem necessary for your situation, talk to your agent about dropping it from the policy. Or, if you’d like to increase a particular type of coverage, just as your agent. Bundling won’t eliminate your choices — it’s simply designed to make your life a little easier and cheaper!
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