If you’ve been in the market for an insurance plan recently, whether talking to an agent or searching on the internet, you probably came across the terms “bundled insurance” and “multi-policy discount.” This is because bundling, or holding multiple insurance policies under the same carrier, has become one of the most common ways for individuals and families to save money on their insurance premiums. In fact, according to United Policyholders, a nonprofit organization that provides consumer information about the insurance industry, approximately 58 percent of consumers nationwide currently bundle their auto and home insurance policies with their existing insurers.
Now, you may be wondering, just because an insurance provider offers a new option, does that really mean it’s cheaper or a good potential option to explore? Why would an insurance company want to offer multiple policies at reduced rates? These are good questions, and the answer is surprisingly simple. When you bundle your insurance, you are less likely to drop your policy or jump around across different providers. This helps insurance companies with client retention, and that added benefit makes it worth offering customers discounted rates.
Additionally, according to nonprofit research group The R Street Institute, bundling insurance saves insurance companies money on processing, administration and selling costs. Therefore, it is simply good business to encourage clients to bundle by passing savings along to them.
So, what’s in it for you? Prices and discounts will vary, of course, based on the types of policy, where you live, and other factors, but what is clear is that bundling does save consumers money. For example, it is not uncommon to save between 8-10% when you bundle an auto policy along with your homeowners insurance in the state of Florida. That, combined with the added convenience of getting to deal with only one agent for every policy, has made the concept of insurance bundling the popular practice it is today.
If you have an existing policy with Darr Schackow Insurance, and would like to explore your bundling options to find out if you can save money, contact your agent today or give us a call at (888) 337-9322.