Year after year the cost of insurance continues to rise. This is especially evident to people holding multiple insurance policies from several different providers. If this sounds like you, then you may have wondered whether bundling your insurance policies with a single company could save you money. The short answer is, “Possibly.” While not everyone who bundles their insurance ends up saving money, many people do.
As for how much bundling can reduce your insurance expenses – well, that depends on a variety of factors. Most people who bundle, however, end up saving around ten to fifteen percent of their overall insurance expenses, though savings exceeding twenty percent isn’t unheard of. Generally, the more types of insurance you purchase through a single provider, the better of a deal that provider is going to give you.
Why? Because it’s easier for insurance providers to grow a current client’s account than it is to land a new client. Knowing this, many insurance providers readily offer their clients incentives like bundling discounts, hoping such incentives will lead to larger client accounts. By bundling your policies with a single provider, that provider earns more money, allowing them to give you a better deal – an agreeable situation for both parties.
While this sounds like a solution where everyone benefits, do note that in some cases, bundling may increase your insurance costs or lower your overall coverage. Before signing off on any changes, be sure to look not only at the quoted price, but also at the coverage you’ll be receiving under the new policies. If it appears that bundling won’t be to your advantage, simply leave your insurance policies as they are and continue shopping around for better deals.
So, if you currently hold multiple insurance policies from several different providers, it’s time to consider bundling. To find out if bundling your policies with a single provider could help reduce your overall insurance expenses, ask your current insurance providers for a quote or do a little online comparison shopping yourself. There’s nothing to lose and your efforts may end up saving you a bundle of money.
