Homeowners’ insurance is essential to protect yourself from the financial risks of fires, natural disasters, and theft. Auto insurance is also important since owning and driving a vehicle comes with the risk of collisions and injuries. Between these two types of insurance, your premiums can add up quickly. However, there are ways to save significantly on insurance premiums. One of those ways is by bundling your homeowners and auto insurance.
What Is Bundling?
Bundling simply means buying multiple types of insurance from the same insurance company. Many insurance companies have special bundling programs. Through these programs, they offer discounts to customers who purchase both types of insurance through them.
The discounts you receive for bundling your insurance vary, but they’re often quite substantial. You can expect a discount between 10% and 25% in most cases. Some companies give you a discount on auto insurance. Others offer discounted home insurance premiums for customers who bundle. And still, others offer discounts on both insurance premiums.
Why Do Insurance Companies Offer Bundling Discounts?
You might wonder why an insurance company can’t just give you a lower price without bundling. The truth is, bundling saves your insurance company money and resources, and these discounts are their way of passing some of those savings on to you.
Insurance companies need to collect and maintain information on their clients. When you bundle, they only have to do this work once, but for two policies. This saves their staff time and effort. Bundling also simply brings the insurance company more business. Rather than just offering you one policy, they are offering you two. This generates more revenue for them, and a discount is their way of thanking you for that extra revenue.
How Do You Find the Best Bundling Discount?
If you’d like to bundle your insurance, it pays to shop around and see which companies offer the best discounts. The answer will vary by region. One company may offer a great discount in one region, but not in another. As such, the best way to find great bundling discounts is to work with a local insurance broker in Flagler County.
Insurance brokers, like those at Flagler County Insurance Agency, work with multiple insurers. They know which insurance agencies tend to offer the best bundling discounts. The answer may vary, depending on your home’s location, your level of risk, and even the type of vehicle you drive.
Rather than simply guessing which company will offer you the best discount, a broker will shop around for you. They’ll curate the policies to meet your specific insurance needs. This way, not only will you get the best bundling discount, but also assure you that the policies you buy actually offer adequate protection.
Can You Bundle Other Insurance?
While almost every resident in Florida needs homeowners and auto insurance, there may be other types of insurance you need, depending on your lifestyle. If you own an RV, for example, you will want RV insurance. If you own a motorcycle, a good motorcycle insurance policy is essential. Boat owners should absolutely have boat insurance to protect themselves from property damage and liability costs. Can you bundle these insurances, too, for even larger discounts?
The answer really depends on the insurance company you choose, but in many cases, bundling additional policies together does result in deeper discounts. You may not save another 25% by adding a third policy with the same insurer, but they’ll generally offer you some discount as an incentive.
Again, this is why working with a broker is important, especially when buying multiple types of insurance. A broker can assess your lifestyle and assets to determine which types of insurance you really need. Then, they can shop around for companies that offer bundling discounts for those types of insurance.
Why Is Bundling So Important in Florida?
Bundling is a good way to save on insurance pretty much anywhere, but it is an especially important strategy in Florida. For one thing, homeowners’ insurance costs tend to be higher in Florida because of the increased risk of storm damage due to hurricanes. There are fewer homeowners’ insurance companies to choose from in Florida than in other states for this reason, and that also enables companies to charge a bit more. Bundling your auto and home insurance is a smart way to counteract some of these higher costs.
You should periodically review your auto and homeowners’ insurance policies to ensure you’re getting proper coverage at a good price. If your policies are currently with different companies, bundling could be a great way for you to save. Contact Flagler County Insurance Agency to discuss your insurance needs with our friendly brokers.