Have you recently renewed your insurance coverage or are you in the market for a new policy? If so, you may have heard the terms “bundled insurance” and “packaged insurance” tossed around. Sorting through all your different policy options can be a time consuming process.
The Insurance Information Institute recommends reviewing your coverage every year. When you review your coverage, one thing to consider is whether bundling your insurance or selecting a package policy makes sense for you. Understanding the differences between these two options can help ensure you have the right type of coverage for your needs.
What are some of the differences between bundled and packaged insurance?
When you bundle insurance policies, you are typically purchasing two or more policies of insurance – like home and auto – from a single company.
A package policy is a bit different. With packaged insurance, the insurance company usually offers a single policy for multiple insurance needs.
Can I save if I bundle my insurance?
The short answer: it depends! Some insurance companies may offer a discount if you bundle your policies through them. You may save money thanks to the discount while also enjoying the convenience of working with a single agent.
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), 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.
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. If it’s been more than a year since you evaluated your coverage, talk to your insurance agent about your different options.