Is bundling insurance the best way to save money?

Many advocate putting all insurance with the same company or bundling

Let’s discuss some of the reasons why you should look at bundling your coverage’s together:Bundling Insurance may not save you money

  1. Saves money
  2. Saves time
  3. Saves energy

Keeping most if not all your insurance needs with the same company has many benefits, including loyalty from the insurance company to you.  Yes, insurance companies will take into consideration as to whether they will over-look certain claims because you have multiple policies with the carrier and “can” make exceptions regarding rates and even if the company will cancel coverage due to claims.  I’ve had more conversations then I can remember with underwriters and upper management folks about keeping a client because they have numerous policies and a history with the company (not to mention it might be very hard to get coverage elsewhere).

Money is also a motivating factor that can’t be over looked.  Because as mentioned above, carriers love when they have multiple policies with a client because they know you’ll likely be a customer for a long time and will give you a discount to bundle.

It’s also simpler for the agent/broker if all coverage’s are with one company which means they can save some energy.  So, at this point it looks like a no brainer, right?

Well, let’s look at some reasons why you should consider unbundling your insurance coverage’s:

  1. Saves money
  2. Saves money
  3. Saves money

Yep, the big one, money…  In some areas of the country like California and Colorado brush fires are a real hazard and many insurance companies will avoid writing home insurance in those cities or at a very high premium to discourage the business.  So you might have a terrific rate on your auto but the homeowners insurance is not going to happen.  Finding a company with a competitive rate willing to write the property might take a little extra effort for a good agent but could save you hundreds or more a year.

Some companies would love to insure your home but have issues with young drivers or maybe that Porsche in the garage.

Antique or classic car – you’ve had that special vehicle in the family for years and only driven it on nice days.  The problem is, that older vehicle might be worth tens of thousands of dollars to you but your regular insurance company is saying it’s a 25 year old vehicle and not worth the price of a tank of gas.  By unbundling and having your insurance broker find a company interested in writing those specific types of vehicles will not only give you “FULL” replacement value but charge you a fraction of the regular insurance premium.

The same thing can apply to motorcycles, boats, rental property, life insurance and other types of insurance.  It’s what they call in the industry “appetite” for certain types of risk.  Not every company is interested in insuring everyone or everything.  Their underwriters use years of data to determine what appetite they have for different types of risk all the way down to which zip code you live in or which model of a vehicle you drive.

So, is bundling a good idea for you – yes and no.  It depends on your needs and the effort your agent or broker is willing to put into the process of finding the best insurance coverage at the lowest cost.

For a review of your insurance coverage please call us at: 800-459-6060 or visit www.insuranceBrokersGroup.com

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