Is bundling your insurance a good deal?

Let’s face it – we enjoy getting discounts on products and services we buy, including insurance. Insurance companies recognize this need for a deal by offering bundled insurance products, such as auto and home insurance, to get more of your business.

Bundling your insurance coverage is generally a smart option – if you do your research first and understand what coverage you’re getting in return.

Benefits of bundling

From the insurers’ standpoint, bundling policies allows them to get, and hopefully keep, more of your business. In exchange, they offer discounted premiums and other potential savings, which may include a combined deductible. This is when you pay only one deductible for a claim that is covered under two policies. Bundled discounts may be as much as 20 percent off the cost of an individually purchased policy.

Studies have shown that customers who bundled policies are more likely to stay with a company for a longer period of time. Bundling may also be convenient for those who have trouble keeping track of bills by offering a single statement for bundled policies.

Why bundling may not be for you

Sometimes bundled prices aren’t always the best deal. Other studies have found customers with home and auto insurance policies at different companies were more satisfied with their auto insurance rates than those customers who bundled their policies. This is because some insurance companies offer auto insurance policies at steep discounts, making an individual policy cheaper than even a bundled price. It is also a good idea to review your insurance coverage to be sure it isn’t lowered by bundling your policies.

Before you buy

Remember, there’s no pressure to bundle your policies. Take the time to comparison shop and determine which policies and prices are the right ones for you. Another tip is to be be sure you actually need all the policies offered in an insurance bundle; you may be paying for coverage that you don’t really need or want.

If you’re already in a bundled policy, be sure to check with your insurance agent to see if your rates will climb if you opt out. This may or may not be worth dropping out of the combined coverage.

Check out the insurance products for auto, home and dental offered by Travis Credit Union!

Auto & Home Insurance Dental Benefits Max