Are you paying for auto, homeowners, and life insurance? By not getting the three together, you could be losing hundreds of dollars every year. Bundling insurance is one of the easiest ways to save money and live an easier life in the same time. I will explain how it works and why it may be the best decision you will take this year.

What Does Insurance Bundling Entail

Insurance bundling works exactly the way shopping in bulk from Costco. When you buy two or more insurance policies under one insurance company, you will get special discounts for having multiple policies. In some cases, if you have car insurance and you opt to buy another product like homeowners or life insurance, you will get even higher discounts. This is all thanks to loyalty discounts that the insurance providers give to the customer.

The most common types of policies that are bundled together by majority of individuals include auto insurance and home insurance policies. Renters insurance, life insurance, umbrella, and business insurance policies for self-employed individuals can be bundled as well. You may also add multiple other insurance policies under one insurance carrier as you wish to. When you go for multiple insurance policies together, not only you end up saving huge money, but you will also get one single company to contact for all your insurance requirements. You will also have a single renewal date for all your insurance policies. You also get to pay for all your policies at once. There is no need to track which credit card is linked to which insurance premium payments. With one provider, you only need to call one number and customer care will solve all your problems.

One thing that we have noticed in Bowthorpe & Associate Insurance Producers is that you can save from 15% to 25% just by bundling insurance policies that you already needed. This is the best way to get insurance services that you need for all the risks you can face. You also get to save that money for other needs.

What Else Insurance Bundling Entails

As an insurance company, of course, you are interested in money savings. However, there are other advantages that you stand to gain by bundling insurance policies. The first one is the case that once you buy any insurance, you no longer have to contact different companies. Once you are required to file a claim, all you need to do is to log in to your account or simply contact your insurance agent.

Your insurance agent will know the history of all your policies, and you will not need to contact multiple companies to inquire what each of them covers in case you suffer a loss. If you are involved in an accident, you will not be required to remember what you have as an insurance policy. Your agent will simply handle the case. Your insurance company will get to quickly locate your previous insurance history. You will also get to enjoy excellent and reliable customer service since the insurance companies will aim at pleasing you so that they can retain you.

If there is need for you to make any changes in the existing policies for instance if you want to add your teenage son or daughter to your current car insurance policy, you do not have to go through a long and complex process since your insurer will have all the necessary information.

Advantages of having one insurance company are not limited to a single case only. Managing your insurance from one place and with a single touch is the best. One account to check, one number to remember, one insurance card to fill when claiming a risk. You just can do with one insurance company if you are struggling with so many. Your payment methods will be easy since you will be charged to one credit card or from your single account.

Items That Can Be Bundled

There are numerous insurance products that can be bundled. However, the key is starting with the ones that you have. Majority of the people start off with auto and homeowners insurance. Once you have them, you can add others as you wish. Renters insurance and life insurance policies can also be bundled. Umbrella insurance policies can also be bought along.

If you are a self-employed individual, it is the best time to consider having all your business insurance products bought under one company. These include your commercial property insurance, business liability insurance, and business auto insurance. This will go a long way in saving you huge money.

However, to save more, there is need to have the right policies bundled. You first need to look at what you already have. Start with the policies that will give you the most considerable discount. You should then look at the least expensive and lastly bundle those with highest price.

Things to Look Out For

Insurance bundling is not all about saving money. You need to be very careful when bundling your insurance products to avoid buying unneeded products. You can easily be offered bundled discounts when you get to an insurance agency. They can be too eager to just get you the products and at the same time earn the commissions.

It is not a must to buy all the policies that your insurance agent recommends. When it comes to insurance buying, the onus of shopping for policies that you really need is only yours. Take time and take a look at all the insurance products so as to have a good idea of those you require so that you can only buy the products you really need.

The other thing is that once your policies are bundled, you will have to pay a higher premium price. This is the case when one of your policies has a low deductible while the second one has a high one. Deductible is the amount of money that you are supposed to pay out of your pocket in case of a loss.

In most instances, if you have a higher deductible, the rates will be lower and vice versa. Thus once your deductible are not the same, when you combine these policies, it results into paying higher premiums.

You also need to be aware that insurance policies that are bundled have little flexibility when you need to shift to another insurance carrier. You may want to move your auto insurance policy to another insurance company because you have realized that you can get them at lower rates. You should, however, note that as much as the company can give you lower rates for one of the policies, it will lose its discount on the other policies which will cost you more. Thus the total amount that you will end up paying for the two policies will be more than before.

One more thing that can happen once you opt to bundle your insurance is that, your policies may no longer grow. You may, for instance, be planning to move to a different state in the near future or even buy another home. There is also a possibility that you may have a new born. When you bundle your policies together, you may not like them to grow as required when these life changes happen.

How to Bundle

The first step is to look at all the insurance policies that you currently have and to know the amount of money that you are supposed to pay as a premium. You can then call different insurance companies or get a single independent insurance agent and see what they can offer. Insurance agents and brokers are the most preferred in this industry. This is because they are able to contact different insurance companies and see what they have in store for their clients. Independent insurance agents like Bowthorpe & Associate Insurance Producers have connection to more than 40 insurance companies. They will only then offer you the best bargains. They are independent in that they are not bound to recommend only the products of one particular insurance company.

Bowthorpe & Associate Insurance Producers, just like other independent insurance agencies, compares all the bundles to different insurance companies. This means that you get unbiased and affordable recommendations for your insurance bundles. You will also get the best products from more than 40 insurance companies.

They, therefore, get all their clients the best bargains that they can get. When you go to different insurance companies and compare prices of the insurance policies, you should not only base your decision on the overall cost. You should also check the scope of cover of every policy. You should also see how each of the policies work in case of an incident as well as look at their deductibles. You can also go through each of their claims, as well as to know if you will be compensated for your losses or damages. The other thing that you should do is to check the customer services that they offer. This will give you an easy way to identify and compare one of their agents in terms of insurance bundles.

The best time to buy is when the current policy is due for renewal. This is because you get to choose various insurance companies without any penalties.

Frequently Asked Questions

Can I Bundle Insurance With A Teen Driver On My Policy?

Yes. The bundling is one of the best if you are an owner of a teenage driver in your family. This is because your insurance rates will be significantly higher. Thus, if you bundle it, you will get additional discounts like good students discounts.

Will Bundling Insurance Affect My Credit Rating?

The bundling of insurance will not, in any way, impact on your credit scores. However, when you apply for insurance covers, you will find that some companies do soft credit checks and will in return impact on your credit score. Insurance providers do not share their payment history on a client’s premium rate payments with the credit bureaus.

What Will Happen To My Bundle When I Sell My House Or Car?

It is not a must for your bundled policies to stay the same once there is any change. Selling a home will see you make changes to your bundles in one way or another. You will thus switch to a renters insurance or it may get to be removed.

You can always get to restructure your bundles to get to retain any discounts that you will be required to offer. You thus end up purchasing insurance that suits your needs at the time.

How Often Should I Review My Bundled Policies?

The best time to review all the bundled insurance policies is every year. You should, however, do the review at least three months prior to the renewal of the insurance policy. This, therefore, helps one to have adequate time to shop around the current rates that he or she is offered in the market with the company that he or she has.

If you have managed to identify a new insurance company that has the required coverage at a cheaper rate. You can decide to compare all the other available coverage so that you may be in a position to come up with more affordable insurance bundles.

Should I Buy Insurance Online Or Go For Local Insurance Agents?

Buying insurance online or from local independent agents does both have their advantages. The only difference is that insurance policies are cheaper if you purchase from online companies. Local insurance agencies, on the other hand, will save you a lot of time when it comes to filing of your claims as well as when you want to make other changes.

Buying online can be cheaper, but the services that are rendered by the insurance company are a bit lower compared to when you buy from a local insurance agent.