You need a few different types of insurance in your daily life. Some of the more common options include homeowner’s, renter’s, life, health, and auto insurance, but there are dozens of other types as well.
Many companies let you bundle your insurance for supposed savings. Is this really worth it?
The biggest advantage of bundling your insurance is the likely saving. Although it can vary, you can easily save about 25 percent on average in premiums just by bundling.
Pro: Deductibles (Possibly)
It’s common to have a single deductible for all of your bundled insurance policies. This typically means that it is lower overall, making it easier to reach.
There’s also the big convenience factor of bundling your insurance. You only have to deal with one company to make payments. You only need to download one smartphone app. You have fewer numbers to keep track of. You have fewer separate monthly payments to make.
Pro: You’re Less Likely to Get Dropped
There’s also the fact that sometimes your insurance company will drop you for having too many claims. The chances of them doing that reduce if you are a client with multiple policies. That being said, don’t rely on this overly much.
Con: Temptation to Skip Research
The upfront discount from bundling insurance may make you complacent and stop you from comparison shopping. This can prevent you from finding the best deal. The solution is easy, though – just make sure to shop around.
Con: You May Still Have More Than One Insurer
Even if you bundle your insurance, you may not get the convenience benefits mentioned above. That’s because some insurers are affiliates and can bundle together plans from multiple companies. Some people call this fake bundling.