Is Bundling Necessary?

Advisors Insurance AgencyAll Blogs, Auto Insurance, General Insurance Tips, Home Insurance, Life Insurance

bundlingNo, not that kind of bundling. We’re talking about insurance bundling.

We’re talking about having your home, car, life, and say, boat insurance under one policy, or with one insurance company.  -That kind of bundling.

So is insurance bundling necessary? Well, there’s a long and short answer, and for us in the digital age, we almost always want the short answer. So, here it goes: bundling is never necessary, however, it is necessary if you want to achieve these four things . . .

  1. Potentially save 25% on your premium. We’ve seen homeowners who have saved up to 35% on their home, car, and life insurance. True story.
  2. Have the ease and convenience of paying one bill and having a consistent source of insurance history and claims records.
  3. Avoid having to pay different deductibles for different policies. This feature is beneficial if you live in catastrophe prone areas where all your property could be damaged at the same time.
  4. Have a smoother and more streamlined claims process during claim time. With a bundled policy, you’ll deal with one company and the claim adjuster(s) they’ll send to assess your home and car damages (i.e in the event of a fire), will already have your case in one place. This convenience can’t be underestimated during a time of a disaster.

The long answer is, you really have to shop around and take everything into consideration, like getting the right protection and your overall insurance costs. Then you have to ask yourself: “am I bundling for a discount, or am I packaging for protection?

Bundling for a discount vs packaging for protection.

When you’re buying a policy, agents will offer you different lines of insurance products, whether it’s jewelry protection or life insurance. In doing so, you’ll get a pretty hefty discount. These are all good considerations. Different agents will look at saving you money and protecting you differently. But between prioritizing a discount vs getting the level of protection you need, there is definitely an order of operations; one is the right way and the other is . . . not so right.

When you bundle your policies, you will certainly get a discount. It could also mean that you are targeting price to decide your protection. This means you may not be using the right company for your situation and/or getting the correct coverage for the money you are paying. We know savings is key, but bundling just for a discount can also work against you, in some cases, almost negligent.

When you are looking for the best policy with the best company for your family or business situation as your priority, then getting the sweet discounts from that company -that’s packaging for protection. In either case, a good agent would help you through all options and optimize your benefits. When you finally cross that bridge, our team is here to help. Just call us: (844) 272-0525