Why Bundling Your Insurance Policies is a Good Idea

Have you wondered whether bundling your insurance policies can benefit you? Here are a few good reasons to make the switch.

Insurance is a monthly expense for most of us. If you own your home, your mortgage company requires that you buy homeowners insurance. Most states require that you carry at least basic car insurance, usually liability, so that if you cause an accident your insurance will cover the damage to the other cars and the medical bills of any injured parties. In addition, if you borrowed from the bank in order to buy your car, they will usually require that you take out a full coverage policy, so that any damage to your car will be repaired as well, and the object of their investment won’t be ruined in an accident or a hailstorm.

Between homeowners insurance and auto insurance requirements, the vast majority of us have at least one insurance bill to pay each month. There are also many optional insurance policies that people choose to have: Life insurance and disability insurance, for instance, are common and important types of insurance policies. Renters insurance protects your possessions even if you don’t own your home. People who participate in dangerous sports, such as horseback riding, may also purchase insurance policies that will provide additional coverage to them as well as others in case of an accident.

With all these different kinds of insurance, you can see how a large portion of your monthly bills can quickly go toward paying your insurance policies. Therefore simply the convenience of bundling your insurance policies can make it a good decision. If you are the kind that is more convinced by the promise of saving money or time, however, here are a few added benefits to make it worth your while.

You can save money with discounts for bundled insurance policies

Many insurance companies offer substantial discounts if you bundle two or more insurance policies. For instance, many homeowners insure their homes and their cars with the same insurance company, earning as much as a few thousand dollars a year in discounts, depending on where they live and the cost of their home and vehicles. Renters insurance and car insurance is another common combination. Also be sure to ask your insurance agent about the availability of life insurance and disability insurance.

You can save time by consolidating several different policies into a single bill

If you have more than one car, a renters insurance or home insurance policy, and life insurance or disability insurance, you may be sorting through and paying three or more policies every month. Bundling insurance policies saves you time by putting all of your insurance premiums in one place, and reducing the number of checks you have to write.

You make your life easier by only having to deal with one insurance agent

Having a different insurance agent or company for every single policy you hold sounds like a lot of work. Bundling your policies, on the other hand, allows you to develop a relationship with one agent, most likely one you will be with for a longer period of time, because customers who bundle tend to be happier than customers who don’t.

You will have an easier time adding to or modifying your existing insurance policies

One of the best things about bundling is that it makes it easier to modify or add to your insurance policies. For instance, if you trade in a car, get another car, or add your teen as a driver on your policy, you only have to make a call to your insurance agent and they’ll modify your policy as needed.

You can more easily set up an auto payment plan, which can also save you money

Many insurance providers will give you a discount if you set up an auto payment plan, which will automatically charge your credit card or deduct money out of your checking account every month. Not only can this potentially save you money, but it also saves you even more time. By having the payment taken care of automatically every month, you can just set up your insurance policies the way you want them, and not have to think about it any more.

One of the keys to saving money on your bills is to find as many ways to save as possible. It may seem only like a little money saved, or a little time saved, but when you don’t have much to spare of either it’s true that every little bit helps. When you bundle insurance policies, you also benefit in other ways too, by making bill paying more convenient and by making it so that you have only one agent or company to deal with when you need to make changes to a policy. If you want to save money on your monthly expenses, bundling insurance policies is a great way to do it!

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