Most families and individuals have more than one insurance policy. People have policies for their home or apartment and a separate policy for their vehicles.

Discounts From Bundling

One way to save money on these policies is to “bundle” the policies within one company. Some Insurance companies offer discounts ranging anywhere from five percent to as much as 30 percent savings over the individual policy premiums if the company writes more than one policy for an insured.

Having more than one policy with a company has other advantages for the insured as well. When policies are bundled the policies can be written so they are all effective on the same date. A common effective date for all policies enables the insured to receive one bill for all the policies. The combined policy billing can be done using various payment plans ranging from monthly, quarterly, semi-annual or annual one time billing. The combined billing help eliminate separate installment payment charges.

Homeowners that have their homeowner insurance premiums escrowed with their mortgage payments, the insurance companies will continue to bill the lender for the homeowner’s portion and send a separate bill to the policyholder for the vehicle or other policies. The benefit is that the insurance companies will still apply the premium savings to all the policies for that insured.

Another advantage to bundling policies with one company is that in the event of a claim the company is less likely to raise premiums or possibly non renew the policy if the insured has more than just that one policy with the company.

Typically the policies that are bundled are homeowners, automobile, personal liability umbrella policies and watercraft policies. Some companies will also consider life insurance or health insurance policies for premium discounts if that company also writes homeowners and automobile insurance for the insured.