by Christy Bieber | Published on July 31, 2021
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Bundling may not always be the best choice.
Most insurance companies provide a discount for bundling coverage. Essentially, that means it's possible to save money on insurance by purchasing multiple different policies from the same insurance company. This could be home and auto policies, or renters and life insurance policies, or any combination of different kinds of coverage.
Before deciding to bundle, though, it's important to consider both the pros and cons of taking this approach.
Here are some of the biggest advantages of bundling different insurance policies by buying them from the same company.
Unfortunately, there could also be some downsides to bundling. Here's what they are
Although it may be tempting to bundle policies by default due to the discounts that result, consumers who are shopping for insurance shouldn't necessarily take this approach. Instead, it's best to get quotes for individual policies as well as bundled coverage from a variety of different insurers to see which options provide the lowest overall rates.
It's also important to compare customer reviews and data on claims handling from different insurers to make sure that using the coverage won't prove too difficult. If an insurance company doesn't have a good reputation for providing a specific type of coverage, don't buy it from them just to bundle. After all, while saving money on insurance premiums is a good thing, the purpose of insurance is to provide protection -- and finding an insurer that executes on that should be the primary goal.
Auto insurance is something that most people don't think about very frequently. While there are several factors that drive people to look to change auto insurance carriers, it is important to educate yourself in order to ensure you select the right coverage for you. The right coverage means not paying for coverage you don't need and not foregoing coverage that would make sense for your personal situation. While price is a major factor, we also consider other factors such as customer service and the claims process when choosing what we think are the best auto insurance providers.
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