Saving Money by Bundling Insurance Policies

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Most people understand that insurance is a necessary product but, as with other necessary products, that doesn’t mean they won’t try to find a way to save money on it.

Bundling insurance coverage is the process of having several policies issued by one insurance carrier thereby creating a package made up of several different coverage options. This can be done by a single individual purchasing several different lines of coverage with one company or a family bundling several different family members’ policies, such as when parents bundle their teen’s auto policy with their own. While many overlook the benefits of bundling, it’s actually a great way to help you save money on several different levels.

Bundling means discounts: There are many reasons insurance companies want to encourage bundling. First of all, when you have a bundle or several different policies with one insurer, it increases the likelihood that you will remain a loyal customer through the years. Secondly, bundling can give them extra insight on your risk making their underwriting process more efficient. Finally, the more insurance you have with them the more you pay in premiums and the less likely they are to have to pay out claims on all of those various insurance policies–which is just a complicated way of saying it’s another means of spreading the insurance company’s risk. Either way, when you bundle policies, your insurance company is likely to offer discounts on the collective premium. Some insurance companies will offer greater discounts the more you bundle.

Only one insurer: When bundling insurance policies you may end up paying just one premium payment. Even if your insurance company separates the premium payments for each line of coverage, the due dates will generally be the same and you will have one address to send premium payments to. You might not think this is a money-saving move, but actually it is. With this method you run less risk of being late on any individual premium payment which means you’re less likely to lapse an insurance policy. A lapsed insurance policy is one that is canceled for nonpayment and in order to get it re-issued, you likely have to pay a penalty not to mention you leave yourself exposed to tremendous losses during the time it’s lapsed.

Making claims easier: There is a financial concept called the time value of money; basically, this concept shows that today’s dollars lose value over time. The money you have today can be invested to earn more and it has the buying power of today’s costs without inflation. That same money, given to you in the future, will have less buying power thanks to inflation and will have missed out on a chance to earn interest. How does this relate to a bundled insurance policy? When you bundle insurance coverage it makes it easier to submit claims for multiple lines of damage. As an example, after a tornado, a homeowner might need to make both a home insurance claim and an auto insurance claim. When working through only one insurer, that process is much easier and quicker which means you have to wait less time for your money.

Insurance is not a product that should be obtained willy-nilly. Have a plan for the way you want your policies run and consider processes such as bundling to help you accomplish that.

This article is provided by Cathleen Stuart, a writer for buyhomeinsurance.net. This site provides home insurance tips and serves as a guide to saving money on homeowners insurance.

Comments: 10

  1. Sylvia August 30, 2013 at 1:19 am

    I’m 68 years of age and wondering should they have the authority to achieve this.

  2. Allyson September 2, 2013 at 3:15 pm

    We simply lost our dog a week ago. He’d meny health problems. We spent 1000’s on vet bills and even though we do not expect issues with a brand new puppy, we would rather be ready. You cannot just join the insurance coverage if you have an issue.

    Thank you for any help!

    Jill

  3. Bo September 11, 2013 at 5:54 pm

    allows say total package arrived on the scene to 400 dollar(FLIGHT+HOTEL+Vehicle) after i go get vehicle will i still need to leave a first deposit with rental car agency or perhaps is everything incorporated in cost(400Dollars)??

  4. Carlena September 21, 2013 at 8:03 am

    I’m a 22 years old recent college graduate. I’ve a time consuming task in addition to a part-time job and deal with 46 hrs per week normally. A man which i haven’t spoken to in a long time known as me without warning, and that he works best for northwest mutual. He asked me arrive at his offices to discuss “my future”. It seemed just a little iffy, however i haven’t seen the man in a long time, and desired to get caught up and so i obliged.

    Well I drove around an hour to his offices, and that i make it happen and that he began speaking about how exactly I have to start planning my retirement now. I tell him which i have saved about $16000 within my checking account and bank account. I additionally tell him that since i was on the track and area scholarship in addition to a academic scholarship, I have little college financial loans to repay.

    Then he began speaking in my experience about compound interest, and just how their whole life insurance coverage plan is the greatest factor which i could ever purchase.

    After doing a bit of research, it appears the only reason to purchase this stuff would be to support receivers should you die early. Well, my parents have been in their 60’s, and that i dont intend on marriage or getting children that they stated I’d most likely achieve this in under five years.

    I pointed out that I believed about opening a roth ira account with vanguard, and that he explained the whole life insurance coverage policy is the greatest choice for me.

    I’ve got a feeling this person won’t leave me alone until I open a merchant account with him, and that he also helped me provide him then recommendations for those who he could help. It had been a very strange experience, but to consult the title, what exactly are your ideas for any youthful person like myself?

  5. Cole October 5, 2013 at 7:40 am

    Im obtaining a truck for school and I’ve been driving for around four years now on my small moms insurance like a secondary driver but im attending college soon and so i need my very own vehicle, Ive already found what vehicle I would like (its an 04 silverado i want the 4wd) so my real question is must i get her to consider me off her policy before I recieve insurance around the new vehicle or can one just get my very own insurance then get her to consider me off hers. i understand its likely to are more expensive however i dont think we are able to have 2 automobiles on her behalf policy Id prefer to ensure that it stays an unexpected until i recieve everything setup basically can. thanks

  6. Santo February 18, 2014 at 4:46 pm

    Here’s the offer. I have lately compensated off the house and so i am No More certain to buy home owners insurance… However, I truly don’t wish to “risk everythingInch..; I am a really frugal person and searching to save cash by any means possible. It had been by my frugality which i could remove the house.

    Nevertheless I’m searching for an insurance policy that covers the “stays and bricks”, however i don’t mind about contents because a lot of my stuff I purchased at yard sales and flea marketplaces etc.

    Therefore if the “whole factor burns lower or blows away”, Among the finest the cash of the items my house may be worth OR to allow them to rebuild it. I do not worry about the contents whatsoever.

    Among the finest so that it is CHEAP!!!! My home is Texas. What types of guidelines must i be searching for?

  7. Donovan March 9, 2014 at 7:50 am

    Okay, new motorists in the household (got the permit today). Obviously, Department of motor vehicles rats you to Allstate, and Allstate charges a lot for insurance (Arm + Leg). Oh, two new motorists. So I am searching for methods to show good character to Allstate or look for a cheaper insurance.

    Now, I understand some fundamental reasons for Car Insurance:

    A) A’s and b’s (above 3. gpa) could possibly get a price reduction from some insurance companies (usually 10%). Have this.

    B) I drive an average vehicle (not Vehicle or sedan). Good shape.

    C) The vehicle is going to be shared between 2-3 youthful motorists. Given that they can’t be within the vehicle at the same time, I picture this could keep costs down.

    D) No criminal history with no disciplinary file in school.

    E) Within the Fall, Motorists Erectile dysfunction is provided. I realize it may also keep costs down

    F) Parents are accountable motorists (low insurance)

    Who is commonly least expensive with Car Insurance? Shall We Be Held wrong most of the above claims, and it is there every other factors that may cut costs? Where is the greatest place to obtain a quote?

    Thanks!

    OK, some info:

    -Geico doesn’t insure teen motorists. So that’s out.

    -The vehicle is really a 2001 Sports Sedan (Maxima).

    -Allstate gives Baloney and just provides the discount for motorists erectile dysfunction, not grades or any other stuff.

  8. Sung April 8, 2014 at 6:28 pm

    Since I Have am only 22, I figure today is preferable to any. I wish to retire at 50 or 65 depending just how much I’ve saved. Beside a 401k, the other opportunities and so i be considering?

  9. Josiah April 11, 2014 at 9:34 pm

    which agent of mine initiate me to register a life insurance coverage like a protection.

    Lately, another insurance professional of mine declare that the saving plan i’ve just signed has already been a life insurance coverage. Exactly why is there the necessity to sign for any life insurance coverage after i curently have one. However i informed her that from things i heard is this can be a saving plan not life insurance coverage.

    After knowing, i acquired abit angry. I cant state that she’s to cheat me.. maybe she isn’t within this line for your lengthy.

    Do you consider i’m able to cancel this insurance policy and obtain back my money? Well, this saving plan needed me to pay for a sum monthly.

  10. Jamison May 12, 2014 at 1:17 pm

    for five million dollars for five kids.

    Millions of per child.

    Two are 18+ and get money immediately.

    More youthful 3 will live and among the elder.

    Just how much will the financial institution cut every month to consider proper care of the more youthful children (7,8,and 17)?

    The cash (full million) stays staying with you for every until they turn 18.

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