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Bundled vs. Package Insurance: Is There a Difference?

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When it comes to insurance, it's essential to find a plan that helps protect the life you lead. According to the Insurance Information Institute, you should review your coverage once a year. While evaluating your different policy options can be time consuming, doing this regularly can help ensure you're getting the coverage you need—and deserve.

When searching for a coverage plan, it's likely you'll come across the terms bundled insurance and package insurance.

What are the main differences between bundled insurance and package insurance?

Bundled insurance typically means you're purchasing multiple insurance policies from a single company. For example, if you buy your home and auto insurance policy from the same place, you'd be bundling your policies.

A package policy is a bit different. With packaged insurance, the company usually offers a single policy for a variety of coverage needs. In this case, you'd just have one policy that covers both your car and your home, helping you simplify your insurance.

How do they impact my coverage?

Depending on your circumstances, choosing one of these options can help simplify and focus your coverage, and help you save on your insurance policy.

What are some benefits of bundled insurance?

Insurance bundles can help streamline your coverage experience by allowing you to work with a single company. Depending on your insurance company, bundling may qualify you for various discounts

What are some benefits of packaged insurance?

With a package policy, you could have coverage for your home, your car and other valuables, like jewelry, all under a single policy, which usually means the convenience of one annual renewal date, one policy number and one bill. Since package policies often provide coverage for multiple items—like home and auto insurance—you may not have to file multiple claims (if a single loss affects both). Package policies may also offer higher limits or enhanced coverage options to help minimize gaps in addition to a variety of discounts.

When should I look into my coverage options?

When your life changes, your insurance may need to change, too. From buying your first home, to getting married to having a baby, life's milestones may mean outdated coverage.

Reevaluating your policies can help make sure you're not lacking protection or overpaying for coverage.

Don't forget that new assets, like inheritance or an engagement ring, may also affect your coverage needs and leave you vulnerable to loss or theft. An agent can help you find the coverage level that's right for you.

How do I know if a package policy or insurance bundle is right for me?

Deciding between packaged and bundled insurance really depends on your personal coverage needs. Start by evaluating your policies to see what type of protection makes the most sense for you and your family. For guidance while you're assessing your options, check out our resources for helpful insurance tools and information.

If it's been more than a year since you evaluated your coverage, talk to your agent about your different options.

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