Does Bundling Insurance Really Save Money?
If you are worried about the steep and rising costs of insurance, then you are no doubt looking for ways to bring down your premiums. One option that has long been touted as a way to pay less for more is insurance bundling. And of course, the one question you must have is – does bundling insurance really save money? In this post, we delve into exactly that and bring you the answers you need.
What is insurance bundling?
Insurance bundling is the purchasing strategy of buying various insurance products as a ‘bundle’ as opposed to purchasing them separately. Insurance bundling has been around for a long while and it is a real option for anyone looking to purchase insurance covers. If you are buying more than one insurance plan, be sure to ask your insurance provider about their bundling packages and offers.
Does bundling insurance save you money?
Yes, it does.
The whole point of bundling products or services, even outside the world of insurance is so as to achieve a higher purchasing power and then use that power as leverage to negotiate for better terms. This works, both in insurance and other industries. If you choose to buy more than one insurance product and have them bundled, you can enjoy marginal price reductions.
Why bundling insurance saves you money
As mentioned earlier, bundling give you more leverage to negotiate for better premiums. The more products you bundle together the more leverage you have. It’s like buying in wholesale and enjoying wholesale discounts. Of course, your negotiating power also comes into play. The reason why bundling insurance earns you discounts is that it incentivizes you to buy more. So it is in the best interests of the insurance provider to give you discounts in form of lower premiums or higher limits.
Examples of insurance covers you could bundle together
The most common way to bundle insurance products is in regards to the relation. People often bundle together insurance coverages that are closely related. For example, home insurance and car insurance are regularly bundled together. In business, fleet insurance and property insurance can be bundled together as well.
However, insurance bundling can occur in another form. You can bundle insurance in regards to quantity. For example, if you have more than one vehicle, you can propose to bundle them together and ask for a discount. This regularly applies to business owners with fleets of cars or landlords with numerous properties.
Other benefits of insurance bundling
The main advantage of insurance bundling is the discount.
Another benefit is that you do not have to use multiple insurers. You get to use one insurer for various covers. This makes management easier because you can call or refer to the same company or individual for many of your insurance needs.
Bundling insurance also earns you better relations with your insurance agency because you get to raise your profile as a client. The more covers you purchase, the more valued you become. This earns you better service and even better premiums.
Haven’t tried insurance bundling yet? Give it a shot today and save on your insurance costs!
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
