There are also a lot of different insurance carriers out there. It's not uncommon for policyholders to buy home insurance from one carrier, while buying car insurance and other policies from others.
However, there are benefits to keeping your insurance policies under the same roof. This is a process called bundling. By bundling your policies, you stand to benefit financially. Not only that, you also might experience an enhanced degree of security for your coverage.
Bundling In A Nutshell
Many large insurance companies offer many types of coverage. For example, some companies offer multiple types of coverage. These might include things like car, home, life, health, and boat protection.
Every insurance provider's policies will differ from those of their competitors. Therefore, most customers have to compare policies to find one that suits their needs. Yet, if a customer finds that multiple policies from one company suit their needs, it might be a good idea to buy from that company. This is what bundling is. You have one insurance portfolio, from one company, containing multiple policies.
The Financial Benefits Of Bundling
Insurance companies frequently reward loyalty. Therefore, if you decide to buy more than one policy from them, they'll likely see you as a committed customer.
As a result, bundles might initiate policy savings. Some insurers let customers pay only one deductible following damage to items covered by different policies. For example, if a storm damages your house and boat, you might only have to pay the home insurance deductible. Also, insurers might award discounts to those who carry more than one policy with the company. Therefore, your premium costs might drop.
The Security Of Bundling
Bundles don't have only financial benefits. They might also lead to a better sense of security as long as customers use them correctly. Some of this security might include:
- Protection against dropped coverage. If you file a lot of claims on one policy, your carrier might drop you or raise your rates. However, if you carry multiple policies, the company might be more forgiving.
- Streamlined payment options. If you have bundled coverage, you can likely pay all your premiums at the same time. So, you may not run the risk of missing a payment.
- Coordinated coverage. Bundled coverage might provide you better cohesion among your policies. Your insurance agent, therefore, might be able to better coordinate your coverage. This might reduce the risks of holes in your coverage.
Bundling isn't for everyone. You should always choose individual policies that offer the most cost-effective benefits. However, if you can still receive those benefits while bundling, it's often a good idea. Ask your Insurance Discounters of Texas agent to compare the policies of their partners to see which ones offer bundling perks.