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Bundling Your Personal Insurance Policies Could Help You Save


bundle-personal-insurance-policiesWould it make sense to have to visit 10 different grocery stores to pick up 10 items on your shopping list? How much would you enjoy having to go to a "bread store" to pick up a loaf of bread, then an "egg store" to pick up a carton of eggs, and then a "milk store" to pick up a gallon of milk—when you could visit one grocery store and get all the items on your shopping list at once? I'm guessing you answered "Not very much."

Then why do so many consumers insist on doing that very thing with their personal insurance policies?

For quite some time, insurance companies have suggested that consumers bundle their personal insurance policies. So why haven't they? It seems like the logical thing to do, especially when in addition to the convenience of having ONE insurance company to deal with, you're able to leverage your loyalty showing to claim discounts.

Often times, consumers fail to make the bundling commitment for no other reason than they don't have time. It may very well be that at the time you bought your policies, it was just convenient. Perhaps, when you purchased your vehicle, you stayed with the same insurance company you had before, and then when you bought your house, your real estate agent referred an insurance agent he/she frequently worked with, and you just went with it, resulting in numerous policies across numerous insurance companies. That may not be a bad thing, but it's definitely not a present-day convenient thing or one that allows you to stretch your bargaining muscle to seek discounts for having a multiple-line policy.

What you might not know is that should you bundle your personal insurance policies—often times your home and auto—you may be eligible for a discount when you have one insurance company write both policies together. Some companies even apply 'one-loss deductible,' meaning if there is a loss that affects both your home and auto policies, they'll apply only the highest deductible to both losses to save you money on your out-of-pocket expense—a benefit you may only reap if you've bundled your policies with one insurance company*.

The bottom line is that you should bundle whenever possible. Often times, it can save you up to 20% on your home policy and 10% on your auto policy, depending on the insurance company. In certain cases, you can take advantage of even deeper discounts when you bundle other policies in addition to home and auto, such as watercraft or umbrella policies.

Contact your insurance agent today, and take advantage of combining all your coverage under one roof. 

*Note that the one-loss deductible is not offered by all insurance companies. Consult your personal insurance agent to find out if this option is available to you.

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