When it comes to insurance, you’ll likely be faced with deciding whether to opt for bundled or unbundled insurance. Bundling—also known as a multi-policy discount—is when you go through the same carrier for multiple insurance policies, most commonly home and auto insurance. Each option offers distinct advantages and drawbacks, so it’s important to carefully evaluate both options to consider how they align with your coverage needs and budget. Bundling can save you money, but how do you know if it’s right for you? In this article, we’ll walk through the ways insurance bundles may benefit you.
Benefits of Bundling Your Insurance
Saving money is the primary incentive to bundle your insurance policies, but there are additional benefits besides the financial aspect. Here’s a look at some of the advantages that come from bundling your home and auto insurance:
Saving Money: Many insurance providers offer discounts for bundled home and auto insurance policies. By combining multiple policies with the same carrier, you may be eligible for cost savings through multi-policy discounts, and some insurers may be able to provide a single deductible for both policies. In fact, individuals who bundle with SelectQuote save an average of nearly $700 per year.
Saving Time: By going through one carrier, you have a one-stop shop for all your policies. Bundling makes managing your home and auto insurance easier, streamlining the process of paying premiums, filing claims, and seeking assistance, since all your policies are centralized with one carrier.
Variety of Bundles: Insurance companies often offer more complex bundles to encourage the combining of multiple policies beyond home and auto insurance. This not only makes obtaining more coverage from that carrier easier, but it may also make it possible to insure assets like your car, home, rental property, boat, and RV all under one policy.
Added Benefits and Perks: In some cases, bundled policies come with additional benefits or perks, like enhanced coverage options, priority service, or loyalty rewards, which can increase the value of your insurance package.
How to Decide if Bundling Insurance is Right for You
While bundling is convenient and can help you cut costs, it may not be the right option for everyone. When deciding if bundling makes sense for you, here are a few tips to help you make the choice:
Evaluate Each Policy: It’s crucial to compare the coverage and values of each policy, whether it’s standalone or bundled. Taking the time to compare companies, coverages and prices can help you find the best deal for both your needs and budget.
Consider Deductibles and Premiums: Bundling policies with one insurance company can build loyalty and trust, but you’ll want to continue shopping around to ensure you’re getting the best price available to you, whether you’re deciding on individual policies or a bundle.
Ensure the Carrier Covers Both Policies: Sometimes insurance companies offer bundles that pair your policies with an affiliate company, so although it may give you a discount, it can reduce the convenience of having both of your policies under one company.
What does unbundling mean?
Unbundling refers to the practice of purchasing separate insurance policies from different providers, as opposed to combining multiple policies into a single bundled package offered by a single insurer. This approach allows individuals to select and customize their insurance coverage based on their specific needs, preferences, and circumstances.
Unbundled insurance provides policyholders with the flexibility to choose separate policies for different types of coverage, such as home, auto, life, and health insurance, from various insurers, tailoring their insurance portfolio to meet their individual requirements. Often, unbundling could be beneficial if you’re able to find better rates and/or coverage from different carriers on the different types of policies you need.
When is it good to unbundle your insurance policies?
While the immediate savings from bundling your home and auto insurance can be ideal, you’ll want to ensure you’re still receiving quality coverage at a fair price over time. Prices tend to increase at policy renewal, so shopping around annually is a good way to make sure you’re still getting the most out of your bundle. If you find that you’re not, unbundling is something you can take into consideration.
Bundling Means More Than Just Your Home and Auto Insurance
Bundling isn’t limited to just your auto and home insurance policies—there are many additional coverages you may be able to include in your bundle. Some additional coverage to consider includes:
Motorcycle
ATV
RV
Boat
Umbrella
Bundle Your Insurance Policies Today with SelectQuote
Shopping multiple insurance companies can be a time-consuming task to do on your own. If you’re wondering if bundling is right for you, SelectQuote can help. Our licensed insurance agents are experienced in helping consumers find ways to save while staying protected. We’ll take the time to learn about your priorities, your existing policies, and what you need covered and help you find ways to save while still maintaining quality coverage.
