Are you looking for a way to cut a few dollars from your budget? Consider bundling your automobile, homeowners, and life insurance with one insurer to get a discount on your premiums. It wouldn’t be unusual for a family to spend $3,000-$5,000 annually for these three coverages. Combining your policies with one insurer provides an incentive to discount your total premiums. Discounts can range anywhere from 10 to 30 percent per year. When you add a second car or another life insurance policy – the discounts will keep adding up.
Bundling your policies can also save you time, because you’re dealing with one insurer to handle multiple policies. Premium notices generally come on one statement, so you can easily renew all of your policies at the same time. Changes to any of your policies can be made in one place and take effect for all the types of coverage you have. This saves time for you and the insurer and helps to avoid mistakes.
Having one insurer can also save time in the event of a claim. Suppose a tree falls on your garage, damaging your automobile that was parked inside. Settling both damage claims would normally involve calling your homeowner’s insurer and then the automobile insurer. The matter may require time and several phone calls if there is any question about which policy should cover damages to the car. When both coverages are held by a single company, the matter can usually be resolved with a single call.
Bundling insurance is not always the best solution. We recommend shopping rates on your insurance coverage periodically to make sure your premiums are competitive. Shopping bundled policies is more time consuming because underwriting multiple lines of coverage requires more time to consider all the factors involved. However, the potential savings is worth the time invested.