The multi-policy discount. The insurance bundle. The insurance package! No matter what name it is referred to as, by now you've certainly been propositioned to bundle your home and auto (and any other policies you might have) with the same insurance company.
Nearly, if not every, company offers some form of a benefit from bundling insurance with them. Just take a look at these companies below:
Progressive:
You'll save with Progressive when you have two or more policies. For instance, if you have auto and boat insurance with us, you'll get a discount on one of those policies. Same goes for auto + motorcycle, auto + RV or any other combination of Progressive products.
Nationwide:
Nationwide’s multiple-policy discounts can apply to combinations of home insurance, auto insurance, life insurance, motorcycle insurance, boat insurance or other Nationwide policies to help you save.
By protecting all of your property with one company, you can save – and help simplify your life. Monthly bills can go to the same place, and you’ll never have to wonder which company to call when filing a claim.
Travelers:
There are benefits when you choose to bundle your car, home or other policies with Travelers. Get a quote today to see how much you could save on your car insurance when you also purchase your home/condo insurance or other insurance policies from Travelers.
Safeco:
When it comes to protecting both your home and car, as well as your other assets, having the right insurance is critical. The Safeco Package offers the best combination of savings, convenience and coverage available. When you need to cover multiple possessions, we’ve got the perfect answer - a Safeco Package.
...You get the idea.
We realize buying insurance isn’t anyone’s favorite thing to do and no one likes to feel like they’re being sold to or handled. It is important to realize that bundling your insurance with a single carrier can make your life easier and keep more money in your pocket.
According to The Balance, home to money experts who "deliver clear, practical advice that will strengthen your lifelong relationship with money", bundling your various insurance needs and taking advantage of the multi policy discount is a wise strategy.
Bundling all insurance policies with one insurance carrier is usually the fastest way to save on household insurance expenses. Streamlining your policies through one insurance carrier will not only save you money but also time figuring your bills and filing a claim. It is possible to find savings a la carte, but it is extremely difficult to beat the multi policy discount.
What are some of the specific benefits of bundling insurance? Certainly the money you can save is a big one. Sometimes you can save up to 25% depending on how many policies you have bundled.
Numbers don’t always tell the whole story though, so here’s how that discount can actually affect your life. Let’s say you’re just out of college, own your car and are renting your first apartment. Renters insurance would probably cost around $100 a year. For the sake of this illustration, you have a $700 annual car payment and for bundling the two policies together, the insurance company gave you a 15% discount. If you run the math, you’ll discover that you’re renters insurance is paid for from the savings of your multi-policy discount.
Need additional benefits of bundling insurance? Let’s look at what might happen in the event a tree falls on your garage and damages both the house and any vehicles in said garage. If your policies are bundled, the insurance company may only charge you a single deductible (usually the larger of the two, so more than likely your homeowners insurance) rather than having to pay the deductible on your house and car(s). Less paperwork, fewer hoops, more money saved.
It goes without saying every company is different and will offer different incentives to bundling with them, so be sure to do your research and make sure your insurance needs are still being met. As noted above, the benefits of bundling insurance can save you money, streamline your policies, and make your life a little easier, which is something everyone is chasing, right? And remember, like The Balance pointed out, “it is possible to find savings a la carte, but it is extremely difficult to beat the multi policy discount.”
If you have any questions about bundling your insurance, specific policies on your mind, or anything insurance related, we’d be delighted to talk with you. Call us at 636.391.0700 or send a note to questions@clhins.com, you can also chat with us on clhins.com as well.