AUTO INSURANCE BUNDLES

AUTO INSURANCE BUNDLES

Auto insurance Bundles

We live in a world where insurance is something we just can’t live without. Whether it is auto, health, home or life, we want our every prized possession insured. But things to insure can add up quickly. Before you realize you have multiple policies with multiple insurance companies that can get difficult to handle. Thankfully, there is an insurance strategy called ‘Bundling’ that can help you get things in order.

One of the most popular insurance to bundle with other insurance policies is auto insurance. Almost 58% of consumers bundle their home insurance with their auto insurance. So, what is auto insurance bundling and how can it help you save money and time. Well, let’s find out.

What is auto insurance bundling?

In the simplest terms, bundling is a strategy where you buy two or more policies from the same insurance provider. For instance, you can purchase your home insurance from your auto insurance company in a bundled policy.

The biggest advantage of bundling your insurance policies comes in the form of discounts. Typically, if you will see a discount of all the policies that you bundle together. Most auto insurance providers call it “the multi-policy discount.“ Depending on the number of policies you bundle together, the savings can be pretty significant.

However, there are many other advantages of bundling apart from the cheaper insurance rates. Some of the benefits include the following.

• There is only one company to deal with for all your insurance needs. You know the people, and more importantly, you know how the system works
• Bundled policies are often handled by the same insurance agent and hence, managing multiple policies becomes easy
• Spotting gaps in your coverage can be easier if you have a bundled insurance policy
• Billing and effective dates of multiple policies can be aligned to make the entire process and your personal budgeting easier

Bundling auto insurance can have some other perks as well. For instance, if you have your car and home insurance bundled, you may be eligible for what is called a ‘single-loss’ deductible. What it means is that if both your vehicle and your home was damaged in the same event, one of your deductibles could be waived. However, you should clear the terms of your policy with your provider before signing on.

How much can you realistically save by bundling auto insurance?

The amount of money you save on your premiums depends on the number of policies bundled and on the insurance company. The said, the national average savings on auto insurance when combined with home insurance is somewhere between 7-8%. If you choose to combine renter’s insurance and your auto insurance in the same bundle, you are looking at about 5% off your auto insurance. Now, the actual figures may vary, but there is no doubt that opting for a bundled auto insurance will save you some money.

What can you bundle with your auto insurance?

Most major auto insurance companies will allow you to bundle several different policies with your auto insurance. Some of the most commonly combined policies with auto insurance are:

• Homeowners insurance
• Renters insurance
• Life insurance
• Motorcycle or RV insurance

Conclusion

Bundling auto insurance is a great strategy to save both money and time. The strategy can also have other benefits apart from lower rates as well. Make sure that you consider bundling your auto insurance policy and talk with your agent today to explore all your options.