If you’re like most insurance policyholders, you probably haven’t given your insurance much thought since you signed up for coverage and set up automatic premium payments. That’s a mistake for a few reasons.
First, it’s essential to examine your policies periodically to ensure you’re getting the best rates. (“Rate creep” is a genuine phenomenon and has been known to catch complacent policyholders by surprise.)
But another reason to re-examine your existing policies is to take advantage of bundling.
Anyone who’s watched TV over the last few years has heard insurance companies promoting policy “bundles.” The term refers to two or more policies being purchased from the same insurer. While insurance companies generally combine a policyholder’s auto insurance with their homeowner’s insurance, bundling isn’t limited to those policies. Several companies also bundle life insurance, health insurance, condo insurance, and more. It’s a widespread practice with insurance companies since it allows them to sell multiple plans at once. But there are distinct advantages for consumers as well.
IT SAVES TIME
Comparing coverage plans and insurance companies is a time-consuming process. By choosing one insurer for all your insurance needs, you eliminate the need for time-intensive research. Choosing a single provider also removes the need to price-shop since one of the chief selling points of bundles is their affordability.
IT SAVES MONEY
Since they’re sold as packages rather than individual policies, the overall costs are less than what you might pay if you buy multiple policies from multiple providers. Generally speaking, you can expect to save from 5 to 25 percent on each policy that you bundle.
IT ELIMINATES CONFUSION
You’ll get one bill and one representative by going through one company. You won’t have to remember multiple agents, phone numbers, and passwords – all your information will be in one place. This is particularly helpful if you ever have to file a claim, since the last thing you’ll need in that situation is any added stress.
THAT SAID, BUNDLING ISN’T ALWAYS THE RIGHT CHOICE
Before bundling your policies, take the time to consider precisely how much – and what types of – coverage you need. While bundling certainly helps reduce the overall cost of policies, the coverage you’re receiving might not always be customizable to your specific needs. If you’re not paying attention, you could end up paying for insurance that doesn’t fit your lifestyle or your budget.
The total amount of your coverage will dictate the rates you’ll have to pay. That’s why it’s vital to get an accurate idea of how much you need. If you overestimate, you could end up paying higher premiums than necessary. Also, remember that you can always increase your coverage limit if you decide to down the road.
DON’T HESITATE TO COMPARE CARRIERS
You don’t have to stick with bundles from just one carrier. It’s wise to shop around and compare costs with different insurers. At the end of the day, an insurance provider needs to meet your coverage needs and budget. So, while bundling can be a great way to save on both money and hassles, it’s essential to make sure you’re getting the proper value for your money.
Want to learn more about bundling?
At Health & Benefits Partners, we’ve been working in the insurance and financial service field for over 15 years. As experts in the individual and group health insurance marketplace, we provide our clients with an unbiased view – because our goal is to make sure you’re getting the most out of your coverage. If you’d like help determining whether bundling is the right choice for you, or if you’d like help identifying the best provider for your needs, reach out today.