You’ve probably seen TV commercials that talk about bundling your insurance coverage, and you may be wondering if bundling—buying more than one type of insurance policy from the same insurance carrier—is right for you. Could you save a significant amount of money by buying your auto insurance and homeowners insurance from the same company, for example?
Maybe. But maybe not. Here are some things to think about if you’re considering whether or not to bundle your insurance coverage.
Will bundling save you money?
The most popular reason to bundle insurance is to save money on policy premiums. Bundling discounts vary by company, but usually range from 5-25%. In Florida, however, you might not get much of a discount—one study found that Florida consumers saved less than those in other states on bundled policies, only about 6.7%.
In certain situations, you also won’t save much, if anything, by bundling your insurance—if you have a less-than-pristine driving record, for example. We’ve found that companies that offer a good rate for your auto insurance may not be competitive for your home insurance, or vice versa.
Some consumers like the convenience of dealing with one insurance company for multiple policies. But this convenience can sometimes be a disadvantage if you want the most cost effective insurance. Once you place your policies with one company, you may be less likely to shop around for a better quote at renewal. While it may be tempting to “set and forget” your insurance coverage, if you do so, you may wind up paying more than you need to. Premiums tend to inch up at renewal each year. It’s good practice to review your coverage and your premiums yearly, or if you have a major life change such as marriage, divorce, or a move.
Other ways to save on insurance
Insurance premiums are based on a number of factors, including the value of what you’re insuring, your credit record, and where you live. Bundling may save you money, but not always. Your best bet is to contact an independent agency, like Lakewood Financial. Our agents will shop for the best rates and coverage for your situation, whether it’s with one insurance carrier or more than one.
Bundling is also not the only way to save on your insurance coverage. Talk to your agent about ways to lower your insurance costs. Ask about discounts (for example, some auto insurance companies offer a discount if you have a homeowner’s insurance policy, even if it’s not with them) and consider raising your deductibles. Also, if your credit improves or a moving violation comes off you driving record, your insurance premiums may go down.
And if you’re still interested in bundling your insurance, remember to compare the price you’d pay for bundled policies with the two lowest cost individual policies. And always be sure you’re comparing similar coverage when you compare insurance quotes.
We know shopping for insurance is no one’s favorite activity. That’s why an independent insurance agency like Lakewood Financial is an excellent choice to represent you. We can do the comparisons for you—we partner with many great auto and homeowners insurance companies, as well companies that write insurance for boats, RVs, jet skis, and so on. We also write life, health, and business policies. We’ll work with you to create an insurance package that will work with your budget and provide the insurance coverage you need. Please give us a call at 941-747-4600 (or contact us online) for a free quote today!