Insurance Insights

Benefits of Bundling Insurance Policies

Bundling Insurance Policies – The Smart, Simple Way to Save Money

There’s nothing like the peace of mind that comes from knowing your most valued assets have the protection of high-quality insurance coverage. This is especially true when you combine your insurance policies to take advantage of a special “bundling” discount. In fact, almost any type of personal insurance policy—including home, renters, auto and life insurance—can be bundled in order to reduce the cost of premiums.

Saving Money is Only Part of the Picture

Here’s an overview of the many benefits you’ll enjoy by keeping all of your coverage with the same insurance provider:

  • Discounts – Many insurance carriers offer discounts for bundled policies. The exact discount will vary between different insurers, but generally range between 5% and 25%.
  • Convenience – Bundling policies together cuts down on paperwork and makes your coverage easier to manage. And because you only have to work with a single insurance carrier, you can save time by viewing your premiums, renewal dates and other information all in one place.
  • Single deductibles – If a loss applies to more than a single policy, the deductible you pay may apply to all of your coverage. For example, if a severe storm damages your vehicle and your home and you carry both policies with the same provider, you may only have to pay a single deductible.
  • Less chance of dropped coverage – Insurers regularly drop coverage if a policyholder makes a large amount of claims. But, if your policies are bundled together, providers will be less likely to drop you.

When to Consider Not Bundling

Bundling does have a number of benefits, but in some cases, it’s best to keep your policies separate. Here are some situations where it may be better to avoid bundling:

  • Expensive auto insurance – Auto insurance rates can vary based on a number of factors. If your rates are higher because of local risk factors, you may want to separate your other insurance policies from your auto insurance.
  • When premiums increase – Having your policies bundled together can make it difficult to shop for new policies, but you may be able to find better rates by comparing different insurers every so often.

Talk With an Insurance Expert

While multi-policy discounts can be tempting, it’s important to remember that bundling policies may not be the cheapest option you have. It’s a good idea to compare prices for both individual and bundled premiums to see how much you’ll save. To learn more, talk with the insurance experts at VTC Insurance Group. Simply contact a VTC agent near you, give us a call, or visit vtcins.com.

This flyer is for informational purposes only and is not intended as legal advice.

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