By Madeline Klein on January 23, 2019 in insurance basics
Bundling insurance has an undeniable appeal to it. It sounds great to have all your insurance policies under one roof, so to say. One call and you can make updates to all your policies? Great! It seems like it would save you time, and it can save you money with some providers who offer discounts for bundled insurance packages.
However, not to burst your insurance bubble, but bundling may not always be the best option.
The downsides of bundling
Yes, the perks of bundling sound great, but they may not be all that wonderful when you dig into the details. Hear us out.
1. You aren’t shopping like you should
When you bundle multiple policies, like a home and auto insurance bundle, for example, you probably aren’t shopping around like you should be. Not shopping means you may not be glancing at competitor’s costs, and you’re probably not checking to make sure your price is where you want it to be.
Over time, what seems like a great deal at first may not be stacking up against your other options out there. Some providers count on bundlers to not look around, and they aren’t as competitive with their prices because of it. And over time, discounts from bundled insurance may decrease. All of this can greatly vary by provider, so if you do choose to bundle car insurance, make sure you get all the nitty-gritty details first.
2. You don’t review your coverage
You should be reviewing your car insurance policy every six months, or at least once a year. This allows you to not only update your policy when you hit some big life milestones, but it’s a good reminder to look at your coverage, and change limits or deductibles if you feel the need. (PS: At Say, anytime is a good time to update your account. You can do it whenever you want through your My Say account, or by giving us a call.
It can be easy to get what coverage you want, and then forget about it later, especially if you bundle. Regular shopping and regularly reviewing your policy means you’ll always have your coverage top of mind.
3. It may be harder to leave
If you bundle car insurance, it may be that much harder for you to ditch a provider if you have a bad experience. Let’s say you have a hard time dealing with an auto insurance claim. The customer service was awful, and it took too many months to get paid to repair your vehicle. The whole experience left such a sour taste in your mouth that you want to find a new auto insurance provider.
But, if you bundle home and auto insurance, that means your homeowner's insurance may go up, or you may lose some bundled discounts. That’s a bummer and not a situation anyone wants to deal with. Some providers may count on that hassle of losing bundling benefits as a way to keep customers.
If you’re not bundled, you have some more freedom to do what you need to and find the service that you want.
4. Bundled insurance doesn’t always mean bundled
If you have a home and car insurance bundle with one company, it may not really mean that you’re bundled with just that one company. Sometimes providers outsource one aspect of their “bundling.” Your auto insurance may be with one provider, and your homeowner's insurance with another.
So what seemed like a great time-saving idea may not actually be all that you hoped it would be. Sure, that one original provider may handle any outsourcing for you, but it still does add an extra element to what you thought was much simpler. If you’re considering bundling, it may be a good idea to ask about if that provider outsources any aspects so that you can be in the know.
Does bundling save time?
If you don’t have the time to shop for the best price, or don’t want to deal with the hassle of finding the best deal, bundling insurance might be the move for you. It will save you time in the sense that you just have to find one provider for multiple policies. You’d only have to pay one provider each month or each term, and you’d have both covered.
But in this day and age, bundling insurance may not save as much time as it did in the past. With most companies allowing automatic payments, the time savings you’d see isn’t quite what it used to be.
How to be a better shopper for car insurance
Whether you’re all about bundling, or don’t really care how your policies are set up, we have some tips to help you become a better shopper for auto insurance.
Check costs for policies individually
When shopping for auto insurance, you should check out what the cost is for each policy. If someone gives you a bundled option, look at the bottom line for all of the individual policies. If prices don’t compare to some stand-alone provider costs, bundling may not be the best option for you.
Shop for auto insurance regularly
It’s also a good idea to review your auto insurance policy every six months or every year. This helps make sure you can note any big life events that warrant a policy change or inform your provider of a change that maybe qualifies you for new discounts. No matter what it is, your regular review is a great time to make all these updates.
It also means you can make sure your price is competitive. While sitting with the same provider for years on end does boost your loyalty with them, it could also mean you’re missing out on a better deal. Weigh any loyalty perks with other quotes to see if staying is really worth it.
The bottom line of bundling
While it may seem like a good idea at the time, bundling insurance won’t always save you the time and money you’d expect. And it may even unintentionally keep you with a provider you’d rather part ways with because multiple policies are all tied together.
Not bundling means you may have more than one provider and more than one login for accounts, but it gives you the freedom to find what works best for you.
Overall though, you should always make your decision based on what works best for you and your family. Maybe that’s bundling, or maybe it isn’t.
Does Say Bundle?
Here at Say, we don’t offer the option to bundle. We’re a one-trick pony in the sense that we only provide auto insurance. We figure focusing all our efforts in becoming a great auto insurance provider can’t be a bad thing, right?
So while you can’t bundle here, we make up for it by offering some awesome discounts to help save you money, and by giving some top-notch service to keep you a happy customer!