When it comes to insurance, coverage is a must-have – in more ways than one. Besides the peace of mind that comes from knowing you'll have the money you need to pay for a car accident, for example, state laws compel all motorists to have auto insurance.
Similarly, in addition to providing for repairs that may be necessary after a fire or weather-related storm, homeowners insurance is typically required by lenders in order to be approved for a mortgage.
In short, insurance is a part of life. Fortunately, there are a variety of insurers from which to choose, all offering several different policy types, each with their own options built within them. And while some specialize in one coverage, most offer multiple kinds, like life insurance, renters insurance, as well as car insurance.
It's in light of this that insurance bundling came to be. Bundling is a service insurers offer that encourages consumers to take out more than one policy. Think of it as a one-stop shopping technique, where instead of buying an auto insurance policy from one provider and a homeowners insurance policy from another, you buy both from the same insurer, saving you time and money. In fact, by bundling, you can save yourself hundreds, if not thousands of dollars over the course of a year by buying multiple policies from one provider as opposed to several.
Those who bundle rarely go back to the old-fashioned way. For example, based on a recent survey from information services firm J.D. Power and Associates, 91 percent of renters who bundle their renters insurance with an auto insurance policy stay with their current insurer when it comes time to renew. This compares to just 67 percent of renters who stay but don't bundle.
However, there are some things you'll want to keep in mind to get the most out of your bundling buck. Here are a few of them:
Whether you're bundling your auto policy with life insurance, or homeowners insurance with motorcycle coverage, there are a whole host of options that you can take advantage of, each tailored to your own needs. When you get in touch with your insurer, be sure to ask them what types are available and which ones are built for you. The details and the accompanying insurance quote will enable you to see what's best.
Ask about discounts
Bundling in and of itself will save you money, but there are several ways in which you can save even more, depending on your current situation. For example, if you just got married and have dual insurance needs for yourself and your spouse, marriage and family savings can provide for this. Also, if you maintain a safe driving record, this can also put more money back into your pockets through insurers' safe driving discount.
Inquire about deductible
The deductible is the portion of an insurance policy that you pay for before your insurer picks up the rest. By bundling, you may be able to lower the amount that you're responsible for.
Look into flexibility
A wise man once said that the only constant in life is change. If you're planning on getting married, or have a baby on the way, you may want to change the details of your policy or add another coverage on to your bundled policy. Make sure you inquire about this to see what the process entails.
Insurance isn't just a should-have, it's a must-have. Make the coverage process easier on yourself and your wallet by bundling so you're good to go.