How to Bundle Insurance Products
In this fast-paced, Internet savvy generation, shopping for cheap insurance might seem like a snap. Unfortunately, many policyholders lose money when brokering out their insurance needs to the lowest bidder. You might think you are saving a bundle, when in reality, you might be losing out on the huge discounts you would otherwise be eligible to receive if you bundled your insurance products all with one carrier.
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Instructions
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Examine your current insurance policies. Are they all with the same carrier? If not, you could be losing discounts of 15 percent to 25 percent on each auto in addition to your home policy. Other discounts also might be available on life insurance, health or umbrella policies.
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Consider opting for a renter's policy if you do not currently own a home. Renter's insurance is inexpensive, covers your personal property and offers personal liability protection. In addition, if you bundle a renter's policy with auto coverage, you might get a discount of up to 20 percent on your auto coverage--which means the renter's insurance might almost pay for itself.
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Get a quote for an umbrella policy if you own your home. Umbrella policies offer additional liability protection on both your home and auto for a single premium, and additional discounts might be applied to your home or auto if you add an umbrella policy to your coverage.
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Inquire about moving your life insurance policy to the same carrier as your auto and home. Additional discounts might be 2 percent to 5 percent when you have your life policy bundled with your auto coverage. If you have a multi-car home, this really can add up.
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Talk to a minimum of five to eight insurance companies to find out what discounts are available. You might be surprised to learn that some companies are much more generous with their discounts than others because of the type of market share they go after. Do not assume one company discount will be the same as another.
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Tips & Warnings
Some insurance companies offer multiline discounts on health and worker's compensation policies, in addition to home, auto, life and umbrella policies.
Bundling your business policies also might position you for unexpected discounts on your personal insurance; always ask your agent about this discount.
Some automobile or home insurance discounts might not be available to those with poor driving records; be sure to ask about this when inquiring with an agent.
Always check your policy pages to ensure you are receiving all the discounts for which you are eligible. Sometimes a clerical or system error might dump a discount you are not aware of.
Make sure moving your insurance makes sense from every angle. For example, use only highly rated insurers, so you can be confident they will be around to pay claims. Also, it might not make sense to move your life or health coverage, especially if you have health issues. You might want to talk to a financial adviser.
