It is your lucky day because insurance agencies offer a discount when you have more than one policy with the company! There are several reasons why insurers give a break to customers who “bundle” or have multiple policies under one roof. There’s many great incentives to consider using this discount of bundling your car insurance and home insurance premium – the greatest of which is putting funds back in your wallet.
Growing Trend of Bundling Insurance Policies
Most insurance companies quickly jumped on the bundling bandwagon… it’s a no-brainer to help clients conserve funds. Nowadays, it’s hard to find a carrier that doesn’t offer perks for bundling insurance. As with most everything, there are pros and cons to using this method to save money on your insurance products, and there are also companies that are much better at it than others!
Let’s jump in and take a look at the best way to bundle insurance.
Advantages of Bundling Insurance
As you now know, there are clear advantages to both the customer and the insurance agency with bundling. For the customer, it comes down to cost savings and convenience. If your car insurance is increasing in 2024, this is one way you may be able to still save no matter how the economy fluctuates.
An insurer will also gain some convenience advantages, such as having a customer’s policies all in one tidy place, which makes communication and administration easier. Additionally, this customer behavior signals loyalty to the brand, meaning it’s less likely a policyholder will abandon ship and move to another insurance agency.
For policyholders and agencies alike, there are cost savings to be had with bundling insurance. You can save up to 16% off their premium when they have multiple policies under one umbrella. Agencies can consolidate policies for more efficient administrative duties, such as renewals, claims and more, which in turn saves them money.
Easier to Manage Payments and Communications
You will only have to pay one bill instead of two or more, so bundling insurance is simple and beneficial. For questions and other necessary communications, the policyholder can use one place to securely manage getting ID cards, make policy changes online, and more!
Agencies can save time, as well, when they can perform operational duties, such as billing and communications with a combined policy. For example, instead of sending out two notices when it’s time to renew, they can send out one. As you can see, bundling protection such as auto coverage and home insurance, is truly a win-win for all involved!
What Types of Insurance Can be Bundled with Freeway?
Most types of insurance can be bundled. The most popular forms are auto, home, renters, life and motorcycle. However, this is not a complete list. You should ask your insurance agent to find out exactly what can be bundled into one policy.
Home and Auto Insurance
By far, the most popular and cost saving bundles is home insurance and auto insurance. Policyholders who show their loyalty by putting these two polices together under one roof can save up to 16% off.
Home, Auto, and Life Insurance
Another popular multi-policy option is home insurance, auto insurance and life insurance. Combining these three together can earn distinct savings on the total package. Likewise, you can also bundle products such as motorcycle insurance, RV insurance, boat insurance, mobile home insurance and more.
Auto and Renters
As with home insurance, you can definitely bundle your auto with your renters insurance for potential savings. Renters insurance is very inexpensive anyway, so you won’t see the same kind of money off that you’ll get with a bundle that includes car insurance and home insurance. But every little bit helps, right?
What Impacts Bundle Savings?
Many factors come into play when an insurance company decides when and if they will offer a discounted premium price for a bundled package. Some offer savings for all bundles. Others are more choosy, offering only select policies for bundling discounts. That’s why it’s always best to shop around and compare different providers so you can get the biggest bang for your buck.
Individual History and Profile
As with all things insurance, your individual factors will come into play when a company is deciding whether to offer you discounts. Here are a few of those factors and be sure to go with a company that really personalizes the whole bundling experience:
- Claims history: Are you a good driver with no claims or other spots on your record? Have you filed a bunch of claims on your home insurance? These are items that will come into consideration.
- Location: Is your home located in a disaster-prone area where damages have increased? Likewise, do you live in a congested and high-crime area where accidents and car theft is more common? Your location will play a part in how much you are charged for insurance.
- Consistent coverage: Have you had consistent coverage over the last 5 years? Insurers want to know that you’ve been responsibly carrying – and paying for – insurance over a certain time span.
There are many other factors that go into this equation. Understanding insurance rates by car type, as well as marital status, home building materials, career, gender/age of policyholder and more.
Policy Limits and Coverage Types
Believe it or not (because yes – saving a lot with bundling insurance coverage probably sounds too good to be true), there are some policy limits and different coverage types an insurance company can offer.
For example, bundling home and car policies generally saves the most money. However, if your automobile insurance is higher than your home insurance -due to where you live or your driving record -you may keep even more money in your pocket by shopping around for a cheaper car insurance rate than by bundling.
Some insurers offer limited bundling discounts, such as only home and auto. Check with your agent and compare policies before signing. Or let a knowledgeable agent with Freeway Insurance shop around for you – saving you time and money and presenting you with several customized options that fit your needs.
Considerations Before You Bundle Insurance Policies
At the end of the day, bundling is supposed to save you money on your insurance policies, but it’s not a guarantee. That’s why it’s always best to shop around and compare offers and prices. Researching potential companies and checking their star ratings will allow you to see how other customers rate their service and pricing.
Hint: always remember to start any new policy before you cancel your old one. In some states, even a one-day lapse in coverage can trigger a report to the DMV, which may start a whole series of unpleasant hassles… who even has fun at those places!? Some insurers want all policies bundled together to begin on the same date, so keep that in mind.
Maximize Your Savings When You Bundle Policies with Freeway Insurance
At Freeway Insurance, we love offering great bundling deals to our customers. Plus, we do the research for you so you’ll have plenty of flexible and customized options to choose from before you make a decision. You’ll save money with experts who have been offering bundling discounts for many years. We can offer you customized, bundled plans with easy-to-manage policies, giving your wallet a break and saving you time.