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Bundling For Better Rates: Beyond Home and Auto

February 20, 2014

a bundle of documentsOne of the simplest methods for getting lower insurance premiums is to bundle your policies under one roof. By using the same insurance company for more than one policy, you can save money on your overall insurance costs. Most people know that there’s a discount for insuring more than one vehicle with the same insurance company, and that you can save by bringing your home insurance under the same company as well. But beyond the basics, there are other ways bundling can save you a lot of money.

Home and Auto: Added Benefits

Most people choose to bring their home insurance to the same company as their auto insurance in order to save on their auto premiums. Because auto insurance is one of the more expensive – and is not optional – many people are concerned with getting a better rate. What you may not realize is that bundling home and auto together can also save you on your home insurance policy.

Most companies offer a discount on both the auto and the home insurance policies for those who bundle them with one company. And in most cases you don’t need to be a homeowner to benefit; renters insurance, also known as tenant’s insurance, often qualifies you for a bundling discount as well.

Bundling Your Life Insurance

Of all the good reasons to take out a life insurance policy as young as possible, saving on your auto insurance is the most immediate. Some insurance companies that offer life insurance may also provide you with a discount on your auto insurance, and sometimes your home insurance, for bundling the policies together in one place.

While most young drivers aren’t giving much thought to life insurance, it actually benefits you in a variety of ways to take out a life insurance policy as young as possible. Since young drivers are subject to some of the most expensive car insurance premiums, a bundling discount can make a big difference and bring your rates down considerably. Taking out life insurance young also allows you to lock in your premium before age and health concerns can cause the cost to rise. A whole life insurance policy can also act as an investment, with a cash accumulation account that can be used later or added to the death benefit.

Insuring Your Other Vehicles in One Place

There may be other vehicles you can bundle with your car and home insurance to get an additional discount. Motorcycles, boats, snowmobiles, RVs, and more may all be subject to bundling discounts. Which of these policies qualify for a discount depends on the insurance company. Not all insurance companies write every type of policy, so you may not always be able to bundle everything.

Motorcycle insurance is one of the most commonly bundled policies, and in some cases will give you much the same discount as another car on your policy. But other types of vehicles can often be subject to bundling discounts as well.

Shopping Your Policies Around

When shopping around for car insurance, it makes sense to shop your other policies around at the same time. This will allow you to discover which insurance companies offer the right policies for all your needs, as well as how much you could be saving by insuring all in one place.

It’s important to note that life insurance is a notable exception to shopping your policies around. As a general rule, it’s best to keep an existing life insurance policy in force, as rates have a tendency to go up as you age, and you would need to start the accumulation of cash on a whole life insurance policy over after cancelling a previous policy. If you are on a term life policy, however, there may be some benefit to shopping around.

Other Benefits to Bundling

In addition to giving you lower rates on many of your insurance policies, bundling your insurance can also make things a little less complicated. Having all of your insurance policies in one place means you have only one insurance company to deal with. If you pay your insurance on a monthly bill, you may be able to put all of your policies on the same bill, so you will have to keep track of fewer bills.

The more policies you can bring under one roof, the easier you can make it to stay on top of your insurance.