What Is Insurance Bundling?

home auto and life icons indicating insurance bundling

Getting a good deal on your homeowners and auto insurance premiums—while carefully ensuring the proper coverage for your most precious assets—is every consumer’s goal. These types of insurance policies protect some of the most important possessions in our lives, so deciding to be sufficiently covered and yet save money is a worthy task. One of the most common ways to reduce the costs of insurance is through bundling. While doing this, it is also a great time to review if changing your deductible will make sense for you as well to help reduce your premiums.

What Is Bundling?

Bundling is an applied set of discounts that insurance companies offer for selling more than one type of policy at a time. The most common types that are bundled together are auto and homeowners (house, condo, and renters). Bundling allows an insurance company to offer a customer discounts on multiple policies, which creates a greater premium amount for them. As the consumer, you have the advantage of the bundling discounts on your premiums, plus the ease and convenience of dealing with one agent and one set of online management tools.

Bundling vs. Separate Policies

Although bundling insurance policies can sometimes save the consumer a fair amount of cost in premiums, that is not always the case. Depending on your circumstances, you may find that separate, individual policies can be less expensive.

Take the time to shop around to determine your best options. Be sure to compare the details of the coverage first, the deductibles and then costs.

Pricing Factors

There are a number of factors that can affect the price of your insurance premiums, which may determine how well bundling will work for you:

  • Your driving record and any at fault accidents
  • Claims history
  • High-performance or specialty type of vehicle
  • General condition of property
    • In-ground oil tank
    • Older wiring (knob and tube)
    • Fuses
    • Certain breeds of dogs, etc.

Any of these and other factors do affect the rating in your insurance coverage, which can determine whether bundling is available or if it will provide any advantages for you.

Buyer Beware

Although online-only insurance companies offer extensive online quote programs, the only way to factor in every detail of your specific situation is by speaking to us directly. At Banas and Fickert, we can identify your particular circumstances, assess your situation and apply a number of options that will help you find the best deals, with more than one carrier! Our collective knowledge of the various insurance companies, their specific policies, and the details of your situation can help identify possibilities for you that online quote generators cannot locate. In addition, online quote generators have the sole purpose of giving you “the lowest possible price” as opposed to “covering your most valuable assets correctly for the lowest price.”