Why Bundling Your Insurance Is More Than Just Saving Money
It’s now well known that bundling insurance—using one company for multiple types of policies—can often mean your total paid in premiums is lower than it would be if you chose policies from different companies. Insurance companies that offer bundled packages typically include discounts between 5 and 20 percent off what the policies would cost if they were purchased separately.
Saving money on premiums can be one selling point. But there are other good reasons to bundle that have nothing to do with those savings.
1) You can avoid duplication of coverage.
Duplicate coverage sounds like a good problem to have, doesn’t it? Not always. Say you park your car in your driveway at night. One morning you come out to find your window has been smashed and your pricey car stereo has been stolen. Your auto insurance covers theft. So does your homeowners policy, because the theft occurred on your property. Who pays? You may find yourself in a situation where both companies want the other to cover the loss and you’re the referee.
2) You can avoid coverage gaps.
Insurance exists because bad things happen. When they do, you want your coverage to be seamless. For instance, you host a pool party for your teenage son’s friends and one of them becomes paralyzed after diving into the shallow end. It was a tragically ignorant decision on his part, but you are sued for damages. Your homeowners insurance includes liability coverage, but the lawsuit exceeds those limits. If you have bundled excess liability coverage through the same insurance company, that coverage will pick up right where the homeowners policy liability coverage leaves off.
3) You may get coverage you didn’t know you wanted.
Maybe you and your husband are not jewelry people. You have a few nice pieces between you—a high-quality watch, some classic diamond stud earrings, a couple of statement necklaces for black-tie events—but not enough to shop for a separate policy to cover them. You come home for a weekend in the country to find your home has been burglarized. Guess what? The bundled policy you chose includes coverage for collectibles and jewelry, and because you had a competent agent who asked about and documented these items when you took out the policy, they will all be replaced.
4) You can save time.
This reason can be the most important of all. What is your time worth? Depending on your profession, you may know exactly how much, down to each 10-minute interval. If you’re not sure, try doing a quick calculation. Then let’s say your home and vehicles were flooded as a result of a 100-year storm while you were out of the country. How much would it cost you to spend hours figuring out policy numbers, reading the fine print on each policy, tracking your claims and dealing with an insurance adjuster? Now multiply that by however many insurance companies are involved in the claims. It takes less time—and, therefore, can be less costly—to make one claim with one insurance company that handles it all.
These are just some of the reasons that Kelly Klee works with insurance companies that offer one price for complete coverage and superior customer service if you have a claim. We know that saving money is important to our clients, and that many factors come into play when determining savings.