Should You Bundle Insurance?

Insurance costs are climbing fast. A recent report from the Consumer Federation of America show homeowners’ rates increased by 24% from 2021 to 2024.¹ The Bureau of Labor Statistics report that auto insurance premiums also increased up to 55% since February 2020.² To cope with these rising costs, consumers seek discounts by bundling insurance policies, or purchasing one or more policy from the same insurance provider. Providers offer discounts for bundling policies, but it may come at a cost to the coverage provided. Consider the following factors and weigh the pros and cons before making the switch.

Pros of Bundling: Discounts and Convenience

1. Discounts - Many insurance companies offer discounts ranging from 10% to 25% when you carry more than one policy with them.
2. One company, one login - Bundling also provides the convenience of streamlining services for making payments and checking the status of claims. For instance, if a storm damages both your home and your car, you’ll work with one insurance company to file a claim.
3. Extra perks - Some providers also offer other benefits with bundling to reward customer loyalty, like roadside assistance or identity theft coverage.

Cons of Bundling: Gaps in Coverage and Other Discounts

1. Renewing without reviewing - The convenience of bundling makes it easy to automatically renew each year, but insurance companies adjust rates and coverage over time. If you are not comparing policies annually, you could be overpaying.
2. Coverage gaps can sneak in – Bundling doesn’t guarantee better coverage. Some bundled policies may offer only the minimum limits. If disaster strikes, you could end up paying more out-of-pocket than you saved.
3. Missing out on other discounts - Besides bundling discounts, providers offer other discounts that may carry even greater savings. Many insurers offer discounts for:

• • Military
  • Retirees
  • Teachers and first responders
  • Safe-driver programs
  • Paperless billing
  • On-time payments
  • Home and vehicle safety features

Review Individual Policies Before Bundling

Insurance provides peace of mind to cover for costly repairs when storms, accidents, theft, or vandalism strikes, and coverage matters just as much as cost. Review each home and auto policy individually to ensure you have the coverage you need. The declarations page provides a summary of limits, deductibles, and exclusions. Make sure there are no gaps in coverage before searching for discounts. If your policy limit only covers the minimum, you might end up paying more out-of-pocket than any amount saved with discounts.

Need Help Comparing? Texell Insurance Makes It Easier

Whether you’re looking for home, auto, or other insurance policies, an independent insurance agent compares policies and rates from several carriers. Texell Insurance agents shop from major providers such as Geico, Liberty Mutual, Progressive, and Travelers. At renewal time, our agents provide a complimentary review of your policy(s) to ensure your rates and coverage remain competitive.

If you’re considering bundling, or just want to make sure you’re getting the best deal, visit TexellInsurance.com or call 254.774.5181. 

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