When it comes to making sure that your home and family are safe and sound, few things are as important as choosing the right insurance plan. About six months ago, my home burned to the ground, and without the right insurance plan, we would have been toast financially. Fortunately, because we had prepared properly, we didn't have any problems when it came to making sure that we could rebuild our place. This website is here to help anyone who might be struggling with which insurance policy to choose. Check out this blog for great information on finding the perfect policy.
Bundling is the practice of taking multiple insurance policies from the same insurer. For example, you can bundle home with auto insurance or business insurance with auto insurance.
Insurance companies often bundle different items as a means to attract and retain customers. This means that not all insurers will offer you the business/auto combo.
Before you proceed, inquire from your insurer whether they have the bundle you need. Some insurance policies such as health and life insurance are generally not bundled.
So is it a good idea to bundle your business insurance and auto insurance?
Here are some pros and cons of taking the business/auto bundle.
This is the most obvious and immediate benefit of taking a business/auto insurance bundle. Insurance companies will offer attractive discounts when you bundle your policies. And the savings can be substantial.
You will get even more discounts when you pay your premiums lump sum. You can also use your current bundle to negotiate for better rates on future policies.
This is the amount of money you pay upfront when you make insurance claims. If you have separate policies and an incident happens, you may have several separate deductibles to pay.
On the other hand, if you have an incident, such as a storm that damages your car and house, you will pay a single deductible if you have a bundle.
A bundle will give you the convenience of dealing with only one insurance company. This means less paperwork. It also means less of a headache as you don't have to struggle remembering the renewal dates of all your policies. You will most likely have a single renewal date for all your bundled policies.
Automatic renewal may make you miss out on important discounts. So remember to review your policy before you renew it. Find out any new discounts that are available. Also find out what other insurers are offering and compare the offers.
If you are not careful, you can end up losing money, while pursuing discounts. Make sure bundling makes sense and that the discount does not reduce the coverage that you had before bundling.
Also ensure any gain you make in lower premiums is not eaten up by a higher deductible.
Bundling seems to offer more benefits than disadvantages. However, first inquire from your insurer whether they offer the bundle you need. Second, check any gains against costs, including inadequate coverage, and third, review your insurance each year before you renew it.