Nowadays, the strategy of buying at least two different policies from the same companies and bundling them in order to avail the multiple policy discounts is followed by almost every people . According to the survey made in 2011 by the U.S National Auto Insurance Study almost 58 % of the customers bundle their policies to save money on their monthly premiums. Discounts on bundling depend on how many policies you’re combining. The insurance companies include discounts on deductibles within the bundled policies. For example, if you’re house and car both are damage in a severe storm, then you will be charged only one deductible. However, before you choose to bundle your auto insurance and homeowners insurance policies, your must know certain facts to know the inns and outs of this strategy.
Will all insurance company offer you bundling discounts?
Discounts on bundling will depend on the type of insurance policies you’re trying to bundle. It may not be always possible to bundle every type of insurance policy. You can easily get discounts on bundling some popular products such as car, home and many more. It is generally found that health insurance providers don’t offer insurance bundling discounts. Thus, in order to avail this strategy, you should search online properly before you purchase one. You can even go through U.S Government websites to know how safely you can shop for insurance quotes on the internet.
Is it possible to pay your premiums separately?
If you have bundled you insurance policies, then it will have its due date on the same time. Suppose, if you were paying your auto insurance policy premiums every month and your homeowners insurance premiums quarterly, then after bundling the policies you have to change your payment terms. If you try to keep a track of your insurance records and contact with your insurance agent, you’ll be able to negotiate a payment schedule that suits you.
How much discount can you get if you bundle your policies?
You can combine your policies in large reputed insurance companies where you can expect to save (10-20) % on your insurance premiums. Bundling won’t be suitable for every customer. It’s because, if you’re able to get quotes from an insurance company which will help you to save 40% on your premiums, then you must switch over to another company. This will help you to save more money than bundling. If you’re able to combine you’re bundling discounts with other discounts offered by the insurance company, then you’ll be able to save a good amount of money. But you must be aware of the fact that if you rely completely on getting discounts through bundling your policies, then you may lose some of the discounts that are offered by the insurance companies.
What will be the consequences if you choose to cancel one of your bundled policies?
In order to take advantage of the bundling discounts, you have to main both of you insurance policies with the same company. If you decide to cancel any one of your policies, then your discounts will immediately cease. Thus, before you decide to cancel any of your policies, you must talk to you insurance agent so that you don’t have a lapse in your coverage.
Lastly, you must know the fact that you won’t be able to bundle your home insurance and auto insurance policies if you purchase it from different insurance companies. Hence, it will be better for you to deal with fewer companies so that, you’re able to purchases multiple policies from one company, take the advantage of the discounts from bundling the policies and save money on your monthly premiums.