No one wants to pay more than they have to for insurance. Bundling your rates is a great way to save some cash while obtaining the coverage you need.
What is insurance bundling?
As defined by Nerdwallet.com, insurance bundling simply means purchasing all of your insurance coverage policies from the same company.
How much can you save?
Exactly how much you save depends on which state you live in; different states have different percentages of savings. According to Daniel Bortz, contributor to ConsumerReports.org, the average person can save in the range of 10 percent to 20 percent on their fees when they bundle their insurance. Martha C. White, contributor to Time.com, claims that this option saves the average consumer 16 percent on insurance fees.
Other perks of bundling
Per Daniel Myers, contributor to Invstopedia.com, a major benefit of bundling insurance is simplicity. It’s easier to pay one bill for every insurance policy you have than to pay separate bills from a few different companies.
Another benefit of bundling is that it provides a safety net, as Nerdwallet.com identifies. If all of your insurance policies are with the same provider, chances are that the insurance company will prioritize you as a customer. This comes in handy when you file any insurance claims or get a driving ticket. The insurance company will be less likely to drop you after these incidents because they want to keep your business.
Whom does it benefit the most?
Since the savings are based on a percentage, if you live in a state with high insurance rates you will benefit more than if you live in a state with low insurance rates. White gives the hypothetical example of a Louisiana resident. In this state, the average homeowner spends approximately $3,000 per year when paying auto and home insurance separately. The state-specific savings for bundling insurance is a bit below 20 percent, so the average Louisiana resident would save about $584 each year by going this route.
How to initiate bundling your insurance
To bundle your insurance, discuss this option with your insurance agent. They will review each of your policies and help you to combine them so you get just one bill per month.
Tips for getting the best bargain
Nerdwallet.com suggests several strategies that will help you maximize your savings when combining your insurance policies. For starters, make sure you ask whether your insurance company uses third parties for any of your policies. Even if you bundle, you’ll still have to deal with multiple insurance companies if yours uses third parties.
Also, make sure to shop around before going with one insurance company for your needs. Compare prices and coverage to determine which one is the best buy.
Lastly, review your bundled insurance policy every now and then to make sure you’re still getting a good deal. If you find that your insurance rates are increasing for no apparent reason, it might be time to switch to a new provider.
Equipped with this knowledge, you can enjoy paying significantly less on your insurance fees by merging your policies into one.