If you’ve been around insurance at all or you’ve watched any amount of television, then you’ve probably heard someone say that bundling your home and auto can save you money. In this blog post, we will be breaking down the advantages and disadvantages that can come with bundling multiple lines of your insurance such as your home or auto policies.
Why You Should Bundle
The obvious reason that most policyholders will look to bundle their home and auto policies with one company is that it will ideally save you money.
Bundling Saves Money
With most insurance carriers, there is a good discount associated with combining your home and auto with them. Having a multi-policy discount on your policy can typically save you anywhere from 15-20% on your annual premium.
Another way that bundling can save you money comes in the form of deductibles. In certain circumstances, an event can cause damage or a loss to both your home and auto. If those two things are insured separately you may have to file a claim separately and therefore have to pay two deductibles as opposed to potentially only having to pay one deductible if they were combined with the same company.
Less Likely To Be Cancelled
If you live in a home that is considered “high-risk” by insurers, they will be less likely to cancel your home insurance if you already have several active insurance policies with them. This can be important for homeowners that experience regular extreme storms, wildfires, or risk of crime.
Why would they cover you and your home despite the apparent risk? Because they realize your value as a loyal customer. If they cancel your home, they risk you also moving your auto policy and going with a different company with all of your policies.
Why You Shouldn’t Bundle
High-End Vehicle Owners
Different than traditional auto-owners, high-end or performance vehicle owners won’t find much value in bundling as often. Due to the larger cost of repairs for high-end vehicles compared to traditional autos, a lot of standard insurance carriers will either charge a very high premium to insure these vehicles or they may even decline coverage. in these instances, we will suggest going with a company that specializes in insuring these kinds of risks.
Keeping You From Comparing Quotes
Unfortunately, we can often see clients that have had their multiple insurance policies bundled for years and have not assessed or had someone assess if what they have is the best option available on the market. While brand loyalty is great and an indication that the insurance carrier is doing their job for you as the client, it can also lead people to base their coverage decisions on what is easy or comfortable rather than what might be the most financially sound or practical for them.
How You Bundle
Whether you are new to our agency or you are a long-time client, our commitment is always to present you with the very best options available to you in both coverage and premium each and every year. If it is possible, our team will always look for the opportunity to bundle as many of your policies together as possible but if that is not the best fit, we will gladly structure your policies with the carrier that makes the most sense for you.
Regardless of whether you are with one carrier or multiple carriers for your insurance, we pride ourselves in providing the same experience to you and your family through our team and how we serve you.
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