Insurance Bundling 101
“Bundling”. “Multi-policy plans”. You’ve probably heard these terms tossed around in insurance commercials, and on your own provider’s websites and social media pages. We know you probably have some understanding of what they mean. Then again, sometimes everyone wants to ask the same questions but are too afraid to admit what they don’t know. Plus, a refresher never hurts, no matter who you are or what you know. So let’s dig into what bundling your insurance policies means, when you should bundle, and how it benefits you.
What is bundling?
Bundling can basically be defined as combining multiple types of insurance into one policy, which should mean that you save both money and time. Simplifying the process also results in a consolidated, streamlined billing process. Plus, you can build a plan that best meets your needs—all while optimizing your discounts.
However, there are two different ways an insurance provider may go about bundling your insurance policies. Many insurance providers will write different kinds of insurance policies within their company, i.e. they themselves create and provide your auto insurance, homeowners insurance, etc. Other insurance providers, like Elephant, bundle by creating a multi-policy coverage plan. We work together with other insurance providers who will write the kinds of insurance that we don’t.
For example, at Elephant, we partner with Homesite to bring you homeowners insurance. Even though we’re not writing your policy ourselves, our relationship with Homesite means we know exactly what they’ll be able to offer you, how it will work with your auto insurance, and best of all, how much money you’ll be able to save by bundling them into one policy.
What are the most common types of insurance bundles?
There are numerous ways that consumers can combine insurance policies. Let’s review some of the more common packages.
- Auto + home insurance: As the most common combination, the average consumer saves up to 16% on premiums when they bundle these two products, according to InsuranceQuotes. For the average consumer, that’s an average of $322 saved per year!
- Renters + auto insurance: Much like homeowners policies, individuals with renters insurance can also save money when they bundle renters with an auto policy. Another bonus? Renters is usually very affordable. The average customer only spends between $10-$15 a month to cover thousands of dollars’ worth of property.
- Auto + home + life insurance: Generally speaking, the more you combine, the more you save. In this context, combining these three major types of insurance helps you improve the chances of savings.
- Multi-car insurance: Bundling multiple cars into one policy can save you a buck, too. Insuring multiple cars under one policy can help you increase the chances of your savings.
Why should you bundle home and auto?
When it comes to insurance, we’re all looking for ways to save the most on our policies, and to make managing them easier. Different insurance providers offer all kinds of discounts for various things, including at Elephant, but one of the biggest and most guaranteed ways to save is by bundling multiple policies together—especially your auto and homeowners insurance.
Time for a little honesty: while we always do our best to keep our prices fair, we know they can still be some of the larger bills you pay every month. That’s why we (and other insurance providers) love to offer discounts wherever we can, and some of the biggest discounts you can earn are by bundling multiple policies—especially your auto and homeowners insurance. At Elephant, for example, you can see a combined savings of up to 22% on your auto and homeowners insurance policies. That can come out to hundreds of dollars saved!
Furthermore, having all of your policies tied together makes it more convenient for you to manage your coverages and trust that your provider has the full scope of your needs. You can also save tons of time if you’re shopping for new coverages, since you won’t really have to search around.
When should I bundle home and auto?
There are specific life events that may help you save money. For example, it may make sense for you to combine your car insurance with homeowners insurance if you’ve recently purchased a home. Additionally, it may make sense to bundle insurance policies after marriage. Many times, consolidating policies can help newlyweds save on their auto and homeowners premiums.
And generally, there’s no bad time to bundle, but the sooner you get started, the sooner you can reap the benefits of a multi-policy discount. The option to do so is generally available at the beginning of your application process. Luckily, combining your home and auto insurance policies is easy. Although merging an additional feature with an existing policy can require more homework to ensure there aren’t any lapses in coverage, it’s generally easy to tack on.
Keep in mind that everyone is different. To check that you’re getting the most bang for your buck, it’s important to compare the total price of your individual policies compared to the price of the bundle. While merging two or more types of insurance generally helps you save, it’s not a guarantee. Carefully review the quotes to make sure you’re coming out ahead.
Ultimately, the best way to gauge if you can benefit from bundling insurance policies is by receiving a personalized quote. Your vehicle and your home are most likely the most valuable assets you own—you want to protect these investments against unplanned damage or disasters. Since you’re probably already investing in auto and homeowners insurance, why not combine them together to make things easier to manage? At Elephant Insurance, our customizable, flexible insurance options are designed to protect you and your family and to provide peace of mind. Get started today.