Why I Unbundled Some of My Insurance Policies

by Christy Bieber | Published on Sept. 12, 2021

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
A man sitting in front of his laptop at home and making a phone call.

Image source: Getty Images

Bundling coverage isn't always the right approach for everyone.

For a long time, I had bundled my home insurance and auto insurance coverages. This meant I had multiple policies with one insurance provider. I made the choice to do that because I was given a multi-policy discount in exchange for having my home and our family cars protected by the same insurer.

Recently, however, I made the decision to unbundle my insurance policies and to instead buy home and auto insurance coverage from different carriers. Here's why that decision was the right one for me.

Unbundling ended up being a better approach

I decided to unbundle my insurance policies after shopping around for homeowners and auto insurance quotes and discovering that it would actually be cheaper for me to buy the two different policies from separate carriers. This was true even without the discount that came along with bundling.

Instead of remaining loyal to one insurer, I found that there was no downside to unbundling and getting my policies from two different insurance providers. Both of the insurance carriers offering me the lower premiums provided the coverages that I wanted, and both had good reputations for customer service and claims handling.

While it can be a little more of a hassle to deal with two insurers instead of just one, I can manage my accounts online and only have to pay my premiums once per year. That means it takes very little extra effort to maintain two separate policies. And it is worth the few extra minutes it takes to handle my accounts since I was able to save a lot of money on my premiums by unbundling.

Shopping around and comparing all insurance options is the best approach to saving on premiums

While a bundling discount may seem attractive and may convince many customers that they're better off getting all their coverage from the same insurer, the reality is that this isn't always the case.

And the only way to make sure that a policyholder really gets the best coverage for the most affordable price is to compare options from different carriers -- including comparing both bundled and separate policies.

If I didn't get quotes for both home and auto insurance every year, I never would have discovered that I could have saved money by separating my policies. And saving on insurance premiums without compromising coverage is worth doing, since insurance is a continuing and ongoing expense that homeowners and drivers need to pay every year.

Since it's quick and simple to get multiple quotes for each different kind of coverage, there's no reason not to explore all options. Drivers and homeowners looking for discounts shouldn't assume that just because they qualify for a discount with one carrier, that this deal is the best one.

Instead, take a few minutes to shop around for prices and compare all of the possible approaches to getting covered. The savings on premiums could be well worth the time it takes.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we've researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

About the Author