Insurance Bundling: Can You Save More by Combining Policies?

When it comes to saving money on insurance, several customers focus on shopping for the best individual rates. However, there is another strategy that could help reduce your overall insurance costs, this is called bundling. Whether you’re handling home, auto, renters, or life insurance combining all of these under one provider might offer you more than just convivence. The biggest question is can bundling really save you money? 

What is Insurance Bundling? 

Insurance bundling is when you purchase multiple types of insurance policies under the same provider. The most common bundling policies are usually home and auto, but for the most part companies also offer bundling for renters and life insurance. Providers will often refer to this as a multi-policy discount, this is one of the most advertised perks in the insurance industry. 

How Much Can You Really Save? 

While your actual savings will be based on your provider, location and personal profile, insurers tend to offer discounts between 10% to 25% on each policy. Here are a few examples: 

• Auto + Home Insurance: This is a very common bundle, often having the highest discounts. 

• Auto + Renters Insurance: This is an ideal option for renters looking for savings and simplified billing.  

• Auto + Life Insurance: Discounts may look smaller here but bundling these still adds up over time.  

Pros of Bundling Insurance 

The most common reason people bundle is the potential to reduce individual premiums.  

It can be a lot more convenient to manage all your policies through one company, this helps simply billing and renewals.  

It’s possible for long-term customers who bundle to be eligible for additional perks.  

Often insurers offer a smoother claims process when multiple policies are involved in a single accident.  

Potential Downsides of Bundling 

Bundled discounts may seem appealing, but it is possible for individual policies to be cheaper with different providers. Always do your research.  

It’s possible you’ll feel locked into one insurer even if one policy becomes less competitive.  

If you don't own a home or a car, bundling options may not apply to you or save you any money at all. 

Maximize Your Savings 

 Do your research and use online tools to crunch down the numbers.  

Sometimes, bundling with other discounts such as driver or security system discounts offers even better savings.  

Your insurance needs and wants might change, so it’s important to revisit your bundle regularly to make sure it’s still the best current deal.  

Overall, insurance bundling can be a financially smart move, specifically for those who value savings and simplicity. But don’t always assume it’s the best and only option. Do your research, compare offers, and consider coverage quality in addition to cost. For more information check out our website.