Bundling Insurance: Good Deal for You, Too – Or Just the Insurer?

Obtaining multiple insurance policies such as home, auto and life insurance from a single provider is always a great deal…at least, for the provider. Virtually every insurance agent will ask you upon your purchase of a policy if you are interested in another insurance product.

This is for the same reason car salesmen will ask if you want hydrophobic undercoating or rustproof windows, because it will make them more money on the transaction. That’s basic business, but is it good business for you? Is putting all your policies under one umbrella a better investment than upgraded floor mats?

In insurance, the practice of combining multiple policy types is known as bundling. In some cases, bundling insurance offers excellent deals on comprehensive coverage, in others it offers an opportunity to give a provider more of your money than necessary.

One of the main benefits of bundled insurance products is a reduced premium rate. As a reward for your loyalty (and for assuring your increased contribution to the company’s bottom line) a provider will usually offer discounts on each policy purchased.

Bundled Deductibles

Another excellent feature is bundled deductibles, which necessitates that only the highest deductible be paid in the event of damage to multiple insured assets. For example, if your home and car are damaged in a house fire, you are only required to pay the deductible for the homeowner’s policy, so you can park your car in the garage with confidence.

Bundling policies also creates one combined bill for your insurance needs, providing convenience for policyholders who have trouble keeping track of bills. You can check out the GIO life insurance page on their new site to learn more about your own policy.

For all its benefits, bundling insurance is not the ideal solution for everyone. In some cases, the price of a specific type of policy is much lower than a bundled rate including the service because companies who specialize in providing this type of insurance will offer much better rates in an attempt to undercut larger providers.

This is often the case for auto insurance, and these companies also frequently offer options that the bigger firms may not such as accident forgiveness and claims-free discounts. This can deliver huge savings for some drivers, and it is certainly worth investigating whether standalone auto or another type of insurance is worth a look.

When it comes to determining if bundled insurance is right for you, the answer is “it depends.” While bundling offers a low overall rate and more convenience for many policyholders, it is not always the best deal in every scenario.

Never feel pressured to bundle your insurance at the time you establish your policy. You can add more insurance products at any time, as the provider will be happy to take more money from you at your leisure.

It is always important to conduct thorough research relevant to your specific situation and comparison shop to ensure that you are getting the best deal regardless of the method you choose. After all, flying blind into anything is what’s really for suckers.

The following two tabs change content below.

• Bio
• Latest Posts

Gail Gardner

Small Business Marketing Strategist at GrowMap

Gail Gardner is the founder of GrowMap.com. She is a Small Business Marketing Strategist who mentors small businesses, bloggers, and freelancers. After 23 years in the field with IBM and 5.5 years managing AdWords accounts, her focus shifted to small business marketing strategy. GrowMap.com is listed by Cision as a Top 100 Site for Marketers and has received three Small Business Influencer Awards from Small Business Trends. Named by D&B a Top 50 SMB Influencer on Twitter, you can follow Gail @GrowMap and on LinkedIn.

Latest posts by Gail Gardner (see all)

• Career Choices: How to Find Work in the Remote Economy [Infographics] - April 15, 2021
• Regular Live Online Small Business Events Tues and Wed - April 11, 2021
• Small Business Websites: How to Make Yours More Compelling [Infographic + Video] - April 8, 2021