3 Reasons Why Bundling Home, Car and Life Insurance is Smart

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You’ve likely heard those commercials that talk about insurance “bundling,” the practice of purchasing multiple insurance policies through one insurer and having them grouped together into a simple policy. With how often it’s now mentioned in advertisements, you may wonder if bundling offers real benefits or if it’s just a lot of hype. While actual rates for insurance can vary greatly from person to person, the truth is that bundling homeowners, auto and life insurance can be very beneficial for many Americans for three main reasons.

Lower Rates

For insurance companies, it’s much less expensive to sell more policies to an existing customer than it is to attract a new customer. As a result, insurers are now more focused on becoming the sole insurer for their customers. To entice customers to switch their homeowners, auto and life insurance policies, they offer discounts for multiple policies. Information about Progressive and other insurance companies indicates that bundled rates typically are lower than the cost would be to purchase the policies separately through the insurer. The savings may be a specific dollar amount that is deducted from the rate or a percentage discount. Typically, the more policies that you bundle with insurer, the more you stand save.

Saved Time

If you’re like most Americans, you likely have a busy schedule and feel as if there’s just not enough hours in the day to get everything that needs to be accomplished crossed off your to-do list. The last thing that you want to do is spend more time that you need to paying bills or getting answers to questions about your homeowners, auto and life insurance policies. When your policies are bundled, you can typically make just one payment to your insurer, meaning less time online or fewer checks to write. Also, if you have questions about your insurance, you have one quick point of contact, such as your insurance agent or your insurer’s customer service department. This eliminates having to send multiple emails or calling many different phone numbers to obtain assistance.

Easier Claims

If a disaster strikes, you may face multiple losses to your property, and having bundled homeowners and auto insurance policies can make it easier to receive payment for the damage to all of belongings. For example, if a storm blew through your area and damaged both the roof of your house and your car, you would need to file claims to both your homeowners and auto insurance policies. If these claims are bundled, the process is more streamlined. You’ll likely only have to talk to one adjuster, provide one statement and make one phone call to report the damage. This can make dealing with the difficult aftermath of a disaster a little less stressful and frightening.

Bundling is a way that consumers can lower their insurance costs, save time and eliminate hassles and confusion; however, the only way to know for sure if bundling auto, homeowners and life insurance would be beneficial for you is to obtain bundled insurance quotes from top companies. Once you have the rates spelled out in front of you, you’ll be in the position to compare the costs to what you’re currently paying and see how much you really can save.

 Author Bio

Barry Johnson is an insurance consultant. He enjoys passing on his insurance knowledge through blogging.

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