Is Insurance Bundling Always Better For Your Budget?

Some things are natural partners: peanut butter and jelly, a needle and thread, Keegan-Michael Key and Jordan Peele. In fact, this is so true that we almost can’t imagine them apart. 

We also know that a perfect partnership can be difficult to find. Luckily, in the land of insurance, we can get pretty close with bundling, which is when a person purchases more than one policy from the same provider. Bundling can save you money and make your life a heck of a lot easier, making it just the type of partnership we love.

But is it always the right approach for your needs and your budget? We explore what bundling is, and when it’s in your best interest.

What Is An Insurance Bundle?

In the insurance industry, if you buy more than one policy from the same provider, this is called bundling. So, for instance, a common bundle is home and auto insurance, meaning that you get both from the same provider. Bundling comes with a lot of benefits, including:

• Ease of management: Working with just one provider allows you to streamline your policy management and payments. 
• Loyalty rewards: Insurance providers love to reward clients with discounts if they stick with them and give them repeat business.
• Savings: Perhaps most importantly, bundling often means you can save money! Getting multiple policies from the same provider can make you eligible for major discounts, which is commonly referred to in the business as a ‘multi-policy discount.’

Don’t own a home or a car? Not to worry: there are still plenty of policies you can bundle even if you rent, bike, or both! You could also bundle a renters or pet policy, for instance. In short, any two policies you need to buy could likely be bundled by most major carriers.

Is Bundling Always Better?

You may be surprised to hear this, but bundling is not always the right answer. True, you’re likely to save money, but your new coverage options might not be adequate. Say you change your auto insurance policy to the provider from which you get your homeowner’s insurance. While you might have a stellar homeowners policy, the coverage you want for your Prius might be pretty thin (for example, they might not offer coverage for slashed tires). So despite the monthly savings, you might find yourself in hot water if there’s an incident. 

As ever, we suggest reviewing your options and comparing quotes so that you can make sure you’re getting the best policy for your needs and your budget. While a lot of information is available online, speaking with an agent about bundling can be very beneficial, as they’ll be able to look into all possible discounts. 

So How Do You Bundle Insurance Policies?

If you do decide to bundle your policies, what steps will you need to take? Since it’s such a common pairing, let’s take the example of homeowners and auto insurance. If you already have car insurance, you can check with your current provider to learn about the pros and cons of adding a homeowners policy to your portfolio. Find out the rates and coverage they can offer you, and then shop around to compare bundled quotes with other companies.

Once you’ve identified the plan you want, simply cancel your current policy — if there is one to cancel, that is. It may be that you’re adding an entirely new policy. 

No matter what, the most important thing is to make sure you have insurance at all times. You do not want to be without insurance. Luckily, if this seems like a possibility, there are easy solutions: You can get temporary car insurance or, if you’re moving, and your property is temporarily vacant, under construction, or unoccupied, you can get insurance for that too.

Keep Track Of Your Insurance With Marble

Whether you bundle two policies or twenty-two, it’s entirely up to you! But no matter your decision, Marble can help. With Marble, you can shop for policies, compare quotes, and keep track of all your policies — all in one easy-to-use digital wallet. Sign up today!