There's nothing better than discovering that you can save money on a significant fixed expense. Insurance is a fact of life for homeowners and vehicle owners, but bundling is one possible way to bring your monthly bill down. If you aren't currently taking advantage of this cost-cutting opportunity, then you may be missing out on hundreds of extra dollars every year. Keep reading to learn what bundling is, how much it can potentially save you, and the best ways to use it to your advantage.
Bundling Basics
Bundling is precisely what it sounds like: grouping two or more policies together under a single insurance carrier. For most individuals, this will mean grouping homeowner's insurance and auto insurance into a single policy. Grouping in this way can be advantageous since many insurance companies provide significant discounts for policy bundling.
While auto and home insurance bundling will be the best fit for most people, it isn't the only option. Bundling discounts are usually available with any two plans, which means that other options may be available to you. If you own a business, for example, it may be possible to bundle your business and home insurance together into a single policy. Options may also be available for bundling specialty vehicle insurance, such as boats or recreational vehicles. You may even be able to bundle renter's insurance.
Getting Started
Making the most of bundling insurance policies requires more legwork than the typical insurance purchase. Online quotes for bundled insurance are available for many insurance companies, but it can require entering a significant amount of information and ultimately make cross-shopping a chore. One of the best (and easiest) ways to determine if you can benefit from bundled insurance is to call up your current providers. If different companies cover your home and auto policies, give each one a call and ask about their bundled plans.
Making the Most of Bundling
You will likely see between a 5-10% annual savings by bundling your policies with one of your existing providers. This reduction can easily add up to several hundred dollars, so it is always worthwhile to take this approach. If you want to maximize your cost savings, however, then there are potentially additional steps that you can take.
If you're ready to roll up your sleeves and do some more research, then it's best to start by checking bundling rates with multiple companies. The available rates may vary depending on the type of coverage that you are bundling, so research your specific needs. Some (although not all) companies may also offer additional discounts if you are bundling more than two policies together, so look into bundling rates for business, RV, boat, or other specialty insurance types that may be relevant to you.
By grouping multiple insurance policies you can reduce your yearly insurance bill by several hundred dollars while also making it much easier to manage your policies. If you aren't already taking advantage of bundling, then the few hours of research required may drastically simplify your life and expenses.
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