Bundling Your Insurance

Why would bundling your insurance be good for you.

The upfront savings of money on policies is a very strong motivator, of course, however it's not the only reason for bundling your insurance. One advantage for purchasing multiple policies with only one company is you gain familiarity with that provider. Yet you also may benefit from paying only one deductible on a claim that otherwise would involve several carriers.

What's a deductible? This is the amount you agree to pay out of pocket when a claim is made on an auto or home. For example, if your home suffers $6,000 worth of damage from a hailstorm and you have a $1,000 deductible, you'd pay the deductible and then receive $5,000.

But what if, under the same scenario, your car is damaged in the same hailstorm? If you don't bundle, you might have to pay the $500 auto insurance deductible and a $1,000 home insurance deductible and that’s before you received help from your policies. Some providers, when you bundle coverages, have a single deductible requirement – though usually you have to pay the larger of the two deductibles.