Why Bundling Your Insurance Policies with the Same Company is Overrated

When you bundle any two insurance products together with the same company, you're always going to get a discount, which is known as a multi-policy discount. It doesn't matter if you bundle an auto insurance policy with a homeowners policy, an auto policy with a motorcycle policy, a homeowners policy with a boat insurance policy, etc. With any two products being with the same company you will get this multi-policy discount.




        In many cases, bundling is smart and makes sense. For one thing, it's much more convenient to deal with only one company instead of multiple companies.




       But the point I want to make here is that bundling is not always cracked up to what it's supposed to be. Companies weigh multi-policy discounts differently. But with most companies, a multi-policy discount is relatively a small discount compared to other discounts available.




For example, all of the following usually are a higher percentage of discount than the multi-policy discount:

• Being a homeowner
• Having prior insurance
• Being married
• Paying your policy in full
• With many companies your credit rating weighs more heavily than the multi-policy discount (but not all).

         Bundling might be your best strategy. But not always. There are certainly plenty of times where you will actually get an overall cheaper combined rate by putting different products with different companies than you would bundling everything with one company.



Too many people get hung up on needing to bundle all of their toys (motorcycle,boat,RV,ATV,golf cart,snowmobile, etc.) that they don't always get the best rate by shopping around.


Bottom line: If you already have a policy in force with a company, it only makes sense to go ahead and try to bundle and see what rate you come out with. However, you don't want to just stop there and assume that it is the cheapest rate you will get. Chances are there is another company that can beat your premium even without the multi policy discount. So keep that in mind when you're buying new toys and looking for an insurance quote. Sometimes bundling is the better idea but sometimes it isn't. Getting multiple quotes is the only way to find out.




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