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Improve Your Savings With These 5 Steps When Bundling Insurance

Improve Your Savings With These 5 Steps When Bundling Insurance

If you love savings, then you definitely want to bundle your insurance policies.  There is plenty of money to be saved when performing this task.  A recent study showed that U.S. consumers can save an average of $295 annually when they “bundle” their auto and homeowner’s insurance with the same company (carrier).  Wouldn’t you like an extra $295 in your pocket?

Savings do differ within each state when bundling insurance policies.  For example, Louisiana shows an average savings of $548 when residents bundle their home and auto insurance policies with the same company.  Below are additional states showing the average annual savings for bundling home and auto insurance:

  • Oklahoma:  $489
  • Texas:  $429
  • Mississippi:  $405
  • Kansas:  $403

While the savings for bundling your insurance do vary, it is always a good idea to bundle your policies.  To find the correct bundling savings, there are certain routes to take that are more beneficial than others.  Let’s jump in to these 5 steps!

1.  Know how bundling benefits you and the insurer

Insurance companies are created to sell more policies.  What insurance companies hate is customer turnover, which can cost the insurers money to market their services to additional consumers. 

The win for both the insurance company and the consumer is receiving additional discounts for bundling home, life, and auto insurance policies together.  You can see savings up to 25% less when you bundle your insurance policies.  In the case of the insurer, bundling gives them that long-term relationship that they prefer.

2.  Always ask about bundling

When receiving quotes for insurance, make sure you always ask about bundling, all major insurance companies off bundling policies.  Insurance companies are transparent about their insurance policies, but your best bet is to ask for a bundled discount. 

Some companies may also give an additional bundling discount if you provide a direct deposit straight from your bank account for your monthly payments.  When you ask about bundling insurance policies, be sure to inquire about additional insurance discounts they may offer.

3.  Be sure to research your discounts

When purchasing a bundled policy, you want to make sure you are getting the best price and coverage offered.  Any policy below 5% of your regular combined payment for auto and homeowner’s insurance is considered low. 

4.  Set your mind on total cost

Make sure you don’t consider a discount from an insurance company as the best deal you have been pitched, be sure to examine the entire package.  Examine the policy and add in any changes in deductibles you pay under a new (bundled) policy – this will be the amount you pay toward a claim before the insurance company’s benefits begin.

This means you need to weigh any “lower out-of-pocket” premium rates against any higher deductibles your new bundled policy requires you to pay. 

5.  Use bundle insurance policies as leverage

So, let’s say you have a bundled discount from a specific insurance company, we will say an auto and life insurance policy.  You can use that as leverage when you need to add additional insurance.  For example, if you were to purchase a boat, buy some rental property, or start a business, you will likely qualify for more savings if you buy this additional insurance from the same insurer.

If you have any questions about the information above, please reach out to us at Safe Harbor Insurance.  We would be delighted to answer any questions that you have about bundling policies or insurance in general!