Considering Bundling Home and Auto Insurances? - NYCM Insurance Blog

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Jan 24, 2019

Considering Bundling Home and Auto Insurances?

You may be hearing a lot about insurance bundling and it sounds good!  But you may find yourself wondering “Will I really save money?”, “What’s the catch?”, “What exactly does bundling mean?” So let’s dive into how bundling your insurance policies can benefit you.

First, let’s define it. An insurance bundle means that one policyholder has more than one insurance product with the same insurance company. One of the incentives for doing so is often a discounted rate. The larger your policy limits, the larger your savings tend to be.

How Does Bundling Insurance Benefit You?

Bundling discounts will vary by insurance company, but you may save an average of 5%-25% off of each policy. The national average of savings when bundling your auto and homeowner’s insurance is between $200 and $300. 

Some policyholders may also benefit, beyond the savings. For anyone who struggles with staying on top of their bills, bundling policies can be a convenient way to consolidate payments. Additionally, if you utilize direct deposits to pay your monthly bills, you may be able to receive an additional discount. If you’ve recently received a ticket or made an auto insurance claim, having your policies bundled also reduces the likelihood that your insurer will drop you.

How You Can Make Sure You’re Getting the Best Deal?

Don’t be afraid to ask your insurance agent for your discount options, and to see if additional discounts are available for electronic funds transfers, advance payments, defensive driving, or driving behaviors.

The short version here is that yes, bundled policies often result in discounts, but make sure you know exactly what you’re getting and who you’re getting it from because ideally, for both you and the insurance company, a bundle is the beginning of a lasting relationship.

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