“Bundle!” they say, “It’ll save money.” We do it with other services, why not car, home/renters, motorcycle, et cetera insurance? With rates going crazy in both home insurance and auto insurance these days, some are finding it makes more sense not to bundle all their coverages together. This “monoline” approach could end up saving money. Monoline is shopping each insurance product on its own merit. The key is, rates are so individual and vary so greatly by insurance carrier and product line that you don’t know which option is best for you, the consumer, unless you check both ways. If it saves you money, time, and hassle, then bundle. If not, then don’t.
Bundling gives the consumer a “multi-policy” discount and discounts are good! From the insurance company point of view, it locks their clients in since clients tend to think about their policies less and check the rates less often which increases policy longevity. It opens the door to consider them for other product lines as well. Sometimes companies will not sell one line without the other, so they are very pro bundling. It is a great marketing tool. Bundling is often more convenient for people, another good reason to consider it. But, if the rates are still higher, even with the discount, then it isn’t saving money overall.
· Often in mono-line policies, you can still get discounts for owning your home or having renter’s insurance. Make sure you check out this discount too.
· The tendency to get a policy and ignore it is what companies bank on, especially in homeowners that are attached to escrow accounts.
Personal insurance isn’t like bundling your internet and tv. Those are products you pay for as you go and get immediate feedback. In insurance, you don’t want to have to use it so you might not pay attention to your coverage or review it until you need it. A best practice, then, is to always make sure you understand your coverage and decide if it fits your needs. For instance, a great price sometimes comes with high deductibles so please calculate your out of pocket if there is a loss, whether you bundle or not. Your current agent may have bundling and non-bundling options for you so just keep the conversation open and let them know what you’re looking to do. Talk about your needs compared to what the policies provide. Think about things like enough liability coverage if something bad happened. Check out the higher options of coverage; they’re often not a lot more money. A small difference now could make a big difference later.
To bundle or not? The answer is, it depends! In other words, make sure you think about each individual product and what protection it offers you. By the way, don’t assume that your agent matches the coverage across the products (that is something you must do either way). Do you have assets people can go after if an incident occurs higher than your policy limits? If it’s been a while since you’ve checked your rates or coverage, spend a bit of time and check them. As stated earlier, the only way you’ll know what’s best for you is if you spend the time to ask questions and compare both bundle and monoline options for your situation and needed coverage.
Contact Solo Insurance for more information about insurance or to get a quote.
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