Making the Move to Bundled Insurance

How much does the average American spend on insurance? The answer might surprise you. According to industry research, average Americans end up devoting more than 5% of their income to insurance policies – and some people spend about double that proportion of their income. The figure includes many different kinds of insurance, to be sure, but when taken together, they add up to enough that any consumer with an eye toward the bottom line would want to reduce his or her insurance expenditures. How can you do that, though, without also reducing your coverage, which will of course leave you at significant risk if the unexpected occurs?

One powerful way in which consumers can save money on insurance is to investigate the possibility of insurance bundling. While not all companies offer this option, it is a common one with some of the largest insurance companies in the nation.

What is an Insurance Bundle?

Basically, an insurance bundle is a sort of “packaged deal” in which a consumer purchases multiple insurance policies from the same provider. While it is possible to bundle a variety of insurance products, the most common combination offered to consumers is usually a package that includes both car insurance and a homeowners insurance policy. In order to purchase such a bundle, of course, prospective buyers must own a home rather than be tenants who rent. Some companies are very aware of this limitation of the most standard bundle, however, and also offer bundles that combine car insurance with renter’s or tenant’s insurance.

How Much can I Save by Bundling?

The power of an insurance bundle is that quite often, it is packaged as a discount on both of the policies involved. Therefore, instead of buying auto insurance from the same company that covers your home just so that you can save some on the auto policy, you will save on both the auto and home coverage. This makes insurance bundling an excellent strategy that produces strong value in return for the small amount of your time that it takes to set up a bundle with your insurance provider.

Although every company has its own pricing structure when it comes to individual policies as well as bundles, some general rules of thumb do usually apply. Consumers who choose a bundled package of insurance can often save up to 10% on the costs of the policies involved. Some find themselves saving half as much again – up to a total of about 15%.

For savings like that, it is truly worthwhile to look online to see what bundles you can get from various providers who offer insurance in your state.

Why not Just Contact Your Usual Company?

This is certainly an option, but a much better one is to take advantage of the power of the internet to make comparison shopping fast and easy. You may find that another company has lower rates than your own, particularly when you are combining insurance products to make qualifying bundles. Every company is different, so if you want to save the most, you need to shop online where easy comparisons are readily available.