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Monday 17 December 2012

Does Bundling Insurance Save Money?

By Leigh Jackson


Most people's car and home owners insurance comes from their past - either passed down to them from their parents or recommended from the company from whom they bought their home. As people grow up, they rarely switch or combine insurance policies and so they end up with different companies insuring different parts of their lives

If you combine the cost of auto, home and life insurance (the big three that most families typically have and keep), most families spend on average between $3000-$5000 each year. Exact rates depend on a variety of factors, where you live, what your lifestyle is like, ext Often there is an opportunity to save money by switching all of your insurance needs to one insurance provider and "bundling" them together.

Bundling insurance policies simply means buying multiple types of insurance--such as car, motorcycle and home insurance--from a single carrier.

Why bundle? Many insurance companies give a discount on premiums if you buy more than one type of coverage from them. More than three-quarters of customers, 77 percent, bundle at least two of their insurance policies, most often their home and auto insurance, according to the J.D. Power and Associates 2011 U.S. National Auto Insurance Study.

Insurance companies also offer other benefits besides deep discounts if you choose to bundle together multiple policies. Sometimes you can pay one deductible on your policy to cover property that is destroyed and covered under different policies. For example; if you have a house fire and parts of your house as well as your car or motorcycle are damaged, if your policies are all bundled together you can pay just one deductible rather than one for each of the damaged pieces of property.

Bundling can also make managing all of your insurance needs and bills so much easier. You only have to get in touch with one company no matter what your insurance need is and you can build a relationship with that company in order to get better advice and coverage on the things you really need.

Sometimes bundling is not the best way to go. There are cases where shopping around for auto and home owners insurance rates will yield lower prices from two different companies. Also, if you have any special needs or circumstances, you may want to go with companies that specialize in your particular problem and they may be different for home and auto. In cases like these it might be best not to bundle.

Before bundling insurance policies, get insurance quotes and compare bundled and unbundled rates to see which option is best for you. Make sure the deductibles and coverage are comparable among the choices before selecting the best deal, and don't forget to consider insurance companies' financial stability and customer service reputation.




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