The Truth About Insurance Bundling

shutterstock_141473875Insurance bundling isn’t just cramming all of your insurance paperwork into one big manila envelope – it really refers to buying more than one insurance policy from the same provider. Insurance companies claim that bundling can save you hundreds of dollars and hours of time. After all, most people need multiple types of insurance, and buying it all in one place certainly seems like less of a headache. In general, bundling can give you access to exclusive discounts and save you time, but it’s not always the least expensive choice.

Types of Insurance You Need

From pet insurance to insurance protecting against specific diseases, there are hundreds of insurance products on the market. What types you need depend on your situation. One benefit of bundling is the trained insurance agent who helps you create your bundle. He or she can review a company’s many product offerings with you and help you make the best selections for your lifestyle. For example, the agent can tell you what policies you’re required to have by law. All 50 states require at least a minimum amount of car insurance coverage, and the new Affordable Care Act stipulates that all Americans must have health insurance. However, the agent might not know that your landlord requires renter’s insurance or that your whole family wears glasses, so vision insurance is a good choice for you. If you choose to work with an agent to bundle insurance policies, don’t depend on him or her alone. Do your homework to ensure you get the coverage you need.

Bundling Prices

You don’t need to look further than the gas pump or the grocery store to realize that prices on everything are going up, and if you’re like most, you try to save money wherever you can. Bundling your insurance products qualifies you for exclusive “bundling” discounts that could drastically cut your premiums. But you shouldn’t assume that your discounted rate is the lowest available. Different insurance companies use different formulas to calculate rates. Depending on the insurance product, companies consider variables such as age, health, driving record, location, and credit score. Because each company’s formulas differ, you might actually save money by buying your car insurance from one company and your renter’s insurance from another. To ensure you get the best rate, shop around! Get quotes from multiple companies and compare.

Saving Time

With work, children’s sports schedules, and friends’ events, you’re probably always running out of time! You certainly don’t have time to spend a whole day dealing with insurance companies. It’s possible that bundling your insurance policies could save you time. You might reduce the minutes you spend on hold by making one call instead of four. When it comes to paying bills, writing one check is easier than writing two. However, not all insurance companies offer these time saving perks when it comes to bundling. Some still request you to talk to different customer service agents in different departments if you have a question on multiple policies, so you’ll still probably wait on hold. Additionally, your insurance company might require that you pay for your policies separately.

Insurance bundling could save you a great deal of money and time, but it could also cost you more. Shopping around and getting multiple insurance quotes is the best way to determine if bundling is right for you. SelectQuote can help you make a good decision by providing access to rates from multiple insurers.

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