The Good and Bad of Bundling Insurance

Should you get bundled insurance? In many contexts, bundling products together often means you get two or more substandard products for the price of one higher-quality version—but that’s not necessarily the case when it comes to bundling insurance policies in Tampa, FL. In fact, bundling your home and auto insurance is actually a winning proposition.

Save time and money when you bundle

The biggest benefit to bundling your insurance is the convenience aspect—but you can often save money, too. Insurance companies and consumers alike have a vested interest in bundling. Insurance companies make more money by selling more policies, and consumers can save up to 25 percent on their policies by bundling. They’ll also pay a lower deductible in addition to smaller premiums. In short, the more policies you bundle together, the more money you can save.

In addition to saving money, it saves the consumer time, too. First, they won’t need to look for insurance policies from various companies. Going with one main company is a smart way to cut down on your research time, as well as when it comes time to pay the bills each month.

It also simplifies the process of getting and renewing insurance. Since you’re working with one company, it cuts down on the paperwork and time involved. Insurance companies appreciate this, too—bundling multiple policies lets them get to know their customers better, so they can serve your needs faster and more efficiently. Instead of making multiple calls to multiple companies, your bundled policies can be handled with a single phone call. That convenience is what keeps people coming back for more—almost half of the customers who get bundled policies renew them, unlike 27 percent of people who do not.

Drawbacks to bundling

There are two potential drawbacks to bundling your insurance policies. First, you may get policies with lesser coverage than you would have if you purchased them separately, from different companies. Make sure that you read the fine print before deciding on a bundle, and ask your insurance agent plenty of questions. It’s important to know what you’re getting—or not getting—before you need to take advantage of your insurance.

Second, bundling insurance is often so convenient that consumers fail to research other rates. That means you could be getting a better rate elsewhere, but the convenience of bundling is so appealing that you might not want to bother looking around. Remember to contact your insurance agent about policies and discounts at least once per year, in the event that there’s a better deal to be had.

Bundling your insurance

To get an insurance bundle, ask your insurance agent what kind of deals they offer. You might choose to bundle homeowners, car and life insurance together, for example. Let your agent know what kind of needs you have and what coverage you’re looking for—and call around to other agencies, too.

For the absolute cheapest bundled home and auto insurance in Tampa, FL, call the team at Affordable Car Insurance Tampa today.