We’re often asked about how to save money on insurance bills. (And one of the great things about being an independent insurance agent is that we can give our clients an honest and unbiased answer!). It’s actually very simple:
The easiest and most effective way to save money on your insurance, without lowering coverage or raising deductibles, is to bundle your policies.
Most of us here in Frisco buy insurance as we need it throughout our lives, often ending up with a hodgepodge of insurance carriers. Which is fine . . . if you enjoy opening extra mail, keeping track of multiple bills from multiple companies every month, and possibly overpaying for your premiums. Personally, we don’t! So, while it’s possible to find savings á la carte, it’s hard to beat the a multi-policy discount.
Whether you call it bundling or a multi-policy discount, it means the same thing: when you buy two or more insurance policies from the same insurance company or agent, you can often make your monthly premiums much more affordable without compromising on the quality of your coverage.
Plus, collecting all your insurance policies in one place just makes life simpler, and we could all do with less everyday hassle!
What Kinds Of Personal Insurance Policies Can You Bundle?
Stop me if this sounds familiar: you start driving around Frisco and DFW at age 16 and get added to your parents’ car insurance policy. Then you add renter’s insurance for your first apartment, using whoever the apartment complex recommends. You get married and take out a life insurance policy online, and when you buy a house, you get home insurance from someone your realtor knows. Then one day you realize that you’re paying 5 or 6 different companies for all kinds of different insurance needs.
It’s normal to end up with an assortment of different insurance providers, but you can often save a lot of time and money by consolidating your policies.
Auto insurance and homeowners insurance are the most commonly bundled insurance products. But you’re not limited to just those two: most companies offer various breaks and discounts on a number of policies, so even if you don’t have a home yet, there are still a number of ways you can bundle and save.
Insurance Bundling: Quick Facts
- In most cases, larger policies do tend to get bigger discounts.
- Typically, bundling auto insurance with renters or condo insurance will save you 5 to 10%.
- Bundles that include homeowners insurance will tend to have even bigger discounts.
Benefits of Bundling Insurance
The Bundling Discount: The most obvious advantage of bundling is the savings. Customers who choose to bundle at least three lines of insurance get the best deals, saving as much as 30% on each premium! But even just two policies can net you some savings, often between 10 and 25%.
For example, if your homeowners and auto insurance policies add up to $3,200 each year, even just a 10% discount for bundling would save you $320 a year. Not a bad discount for two insurance policies that you have to pay for anyway!
Only One App: Yep, there’s an app for that. These days, there’s an app for everything! If you bundle your insurance, then all your app needs will be in one place. You’ll only need to download (and learn to use) one app, and you’ll be able to quickly check your policies, make claims, and pay premiums all in one place.
Only One Agent: Bundling insurance also reduces the amount of time you’re going to spend on the phone with an insurance agent. When your insurance agent already knows who you are, and understands your assets and family situation, then making any changes to your account should be a seamless process. It’s much easier to add new types of insurance, apply discounts, and add endorsements to a homeowners or car insurance policy – or even just to ask for expert advice about your particular financial situation.
Less Chance Of Being Dropped: It’s always the case that if you have too many claims on your home or car insurance, your insurer could “drop you” by choosing not to renew your policy – but they are less likely to do this if you are a client in both their home and auto divisions. It’s not a good idea to rely on this, but it could be advantageous.
A Lower Deductible: If you bundle your insurance, then you will likely only have one deductible amount to meet for both insurance products. This can sometimes (although not always) mean a lower overall deductible then you would have without bundled insurance – though usually you have to pay the larger of the two deductibles.
How To Bundle Insurance Policies
Keep in mind that there are important considerations when bundling insurance policies. A few words of caution:
- Be sure to take into account the insurer’s reputation for customer service and handling claims.
- When comparing multiple quotes, make sure you are looking at the same amount of coverage for each plan you are considering. For example, if one plan looks more affordable, but leaves a gap in coverage that will mean you are not covered for a claim, then it’s not a better deal.
- Be sure to review your deductibles for each of the policies in the bundled plan. While you can save money on your premium by increasing your deductible amount, you may not be happy with the amount you need to pay out of pocket before coverage kicks in at the time of a claim.
- Beware of the Fake Bundle. Sometimes, you won’t be bundled in the same company, but with an affiliate company. This might still give you the discount, but it will reduce the convenience of having everything under one roof (and under one app). Do your research and know exactly what you’re getting.
- Reevaluate every so often. Your loyalty to the company you buy insurance from should not increase just because you have two insurance policies and pay them more money – do your price shopping every few years and reevaluate the relationship as needed.
If researching all your options sounds like a painful chore, well, that’s what Parkwood is here for! Us our research and expertise to provide you with the right options for your family and your financial plan.
You can go over all of these concerns and more with the agents at Parkwood Insurance. We’re uniquely positioned as an independent insurance agent to find you the most affordable policies, tailored to you. This is because we can draw from a wide variety of policies on the market, rather than having to stick to a limited pool like a regular stand-alone insurance company.
So whatever policies you may need, talk with your insurance agent about bundling and whether you’re eligible to save time, save money, and simplify your life.