There are a lot of things to consider when buying auto insurance, such as how comprehensive plans are and overall quality. However, many buyers are motivated strictly on price and do not take the time to delve into what coverage they’re actually purchasing. It’s important for drivers to begin considering more than just price and take a more in-depth look into the coverage they’re receiving.
One way to increase your coverage options and get more “bang for your buck” is by combining your auto and home. Bundling your auto insurance policy with the coverage you have in place for your home could open the door to more coverage options.
Bundling is just like it sounds: It’s when you combine one form of coverage with another kind, such as pairing homeowners or renters insurance with car insurance. Many insurers these days offer more than one type of policy type, and because the average consumer usually needs multiple plans, it only makes sense to put them together rather than buying from different insurers.
You’ve probably noticed a number of insurance companies publicizing bundled policies. In 2011, for example, carriers spent more than $5.5 billion on advertising, according to Reuters. These types of promotions have paid off both for insurers and policy holders. For instance, according to a J.D. Power and Associates study, customer retention rates were higher among renters who bundled with an auto policy compared to renters who didn’t, at 91% and 67%, respectively. Another big reason to bundle your policies: you may be eligible for coverage discounts.
More people are bundling policies
Not only are more insurers offering policy holders the opportunity to bundle their policies, but consumers are taking advantage, with the rate increasing to 77% recently from 70% in 2010, a separate study from J.D. Power revealed.
“As a result, discounts for multiple policies are among the most prevalent discounts reported by customers, along with discounts for being a safe driver,” the study found.
Clearly, buyers recognize that they can obtain coverage at a more affordable rate by buying from the same insurer. Bundling also makes managing them a lot more convenient.
How much can you save by bundling? Give us a call to find out!