Bundling Insurance Policies: Advantages and Disadvantages

Dec 26, 2019

26 Dec
Auto Insurance, Helpful Tips & Ideas, The Ins & Outs of Insurance

Bundling Insurance Policies: Advantages and Disadvantages

by Robert Marsalona

Certain insurance companies may offer you the opportunity to “bundle” your insurance policy. This means to place both your auto and home insurance with the same carrier. As the consumer, you may notice multiple benefits to bundling your insurance policies. However, this isn’t always the best option.

Advantages to Bundling Insurance Policies

Multi-Policy Discount

When you bundle your insurance policies with the same carrier it is likely they will offer you a discount for your loyalty. The amount of the discount may vary depending on your insurer. At TSC>Direct, when you bundle your home and auto insurance you can receive anywhere from a 5%-10% discount that will be reflected on your home policy.

Dealing with One Company

Bundling insurance policies will not only save you money but it can save you time as well. Everything will be consolidated. One agent will be able to help you with both products, which will allow you to build a stronger and more comfortable relationship. Additionally, it will be easier for them to evaluate your coverage from year to year to make sure it is still fits your needs. Just get married? Purchase a new vehicle? Well, the company you bundle your insurance policy with will be able to re-evaluate your current situation and assure there are no gaps in coverage. They will be able to seamlessly apply any necessary discounts and initiate any changes.

Disadvantages to Bundling Insurance Policies

Forgetting to Shop Around

Bundling insurance makes everything extra convenient, you’ll be getting one bill for multiple insurance policies and have a trusting relationship with your carrier. Your coverage may feel seamless from year to year with little to be concerned about. However, you don’t want to become overly complacent. If you avoid exploring the pricing options offered by other companies, you may miss out on the most competitive rates.

Discount Goggles

When bundling insurance policies it’s also very easy to assume you’re getting the best rate because of the bundling discount. Though the discount may be sizeable, there is the possibility that having separate insurance policies could be the less expensive option.

High-Performance Vehicles

If you own a sports car or another expensive vehicle, a traditional auto insurance company may have less competitive rates than a company that specializes in insuring these vehicles. Furthermore, they may not extend coverage to that vehicle at all. In these cases, it may be best for you to have separate auto and home insurance policies.

Should You Bundle Insurance Policies?

As evidenced here, the decision to bundle your home and auto insurance policies is all relative. You have to weigh the benefits based on your circumstances as well assess as your tendencies as a consumer. Contact your insurance carrier to find out if you have the opportunity to bundle and be sure to do your due diligence in shopping around before committing based on the size or amount of the discount.

Need Affordable Home and Auto Insurance or Looking to Bundle Insurance Policies? Call TSC>Direct Today.

TSC>Direct has been providing home and auto insurance to New Yorkers looking for affordable coverage for over 30 years. When you bundle your home and auto with TSC>Direct, you will not only receive a discount on homeowners insurance, but can qualify for an umbrella policy. We offer coverage in New York City, Brooklyn, Queens, The Bronx, Long Island, Staten Island, Westchester and Orange counties. Get a free online quote for affordable homeowners or auto insurance in New York or call TSC>Direct today at 1-800-JOIN-NOW (800-564-6669).

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As  of December 31, 2019 Tri-State Consumer Insurance Company, known by its trade name, TSC>Direct, had admitted assets of $109,367,801 and policyholders surplus of $49,936,957.  Its total liabilities were $59,430,843 including $38,313,944 in reserves.

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Providing auto and homeowners insurance to: New York City, Queens, Manhattan, Brooklyn, Bronx, Staten Island, and Nassau & Suffolk Counties in Long Island. Providing homeowners insurance also to: Westchester County and Orange County NY.