Is Bundling my Insurance Policies the Best way to Save Money?


Many advertisements showcase the benefits of bundling your insurance policies together, particularly when it comes to saving money. Depending on the company and the policies you choose to bundle, you could qualify for discounts between 5% and 10%. You might also be interested in the added convenience of having all of your insurance managed by one company.

However, bundling isn’t always the best option for everyone. While it often is a great way to save most customers at least some money, talk to your Westwood agent to help maximize your savings. Often, we do recommend and help our customers with policies that are bundled under one company. However, if your circumstances are better served by shopping around, we can do that for you to find the right policies and the best price.

Why bundle in the first place?

As many of the ads say, there are several advantages to bundling your policies. The most popular of these benefits is the increased savings, sometimes referred to as multi-policy, multiline, or multiproduct discounts. Discounts can vary greatly by company. Some companies have been known to provide discounts of around 5-10% on homeowners policies or up to nearly 30% off bundled auto policies.

There are other benefits to bundling. Some customers enjoy the simplicity of having all of their policies managed by a single company. If there’s an issue, there’s less hassle sorting out who needs to be contacted, and usually, policies can be paid through a single platform. If your insurance history is less than stellar, such as making auto claims or getting tickets, having your car insurance bundled with other policies can reduce your risk of being dropped by your insurer.

Is there ever a reason not to bundle?

Whether or not you should bundle your insurance policies depends upon your situation. Insurance isn’t one-size-fits-all. Bundling may be convenient, but it isn’t always your cheapest option. Depending upon factors like where you live, the value of the items you’re insuring, and the policies you’re looking to carry, your options could look very different from another person with other circumstances.

A poor driving record or a more expensive car may help you come out ahead with bundling, where a discount could offset an otherwise expensive auto policy. Your neighbor, in a similar house, with a modest car and slightly better driving record, might save more money breaking the bundle. Discounts can also vary significantly by what you’re bundling.

Bundling could also mean overbuying, with pre-packaged deals that include policies or coverages with limits beyond what you want or need. This could mean that while it looks like you’re saving for what you’re getting, you’re still ultimately paying more than you need to. You’ll also want to be careful. In some cases, but not all, bundling discounts can be temporary. Even if discounts remain, rates can increase incrementally yearly, as bundling often encourages “set it and forget it” mentalities. This can be especially true if you pay through your mortgage lender or escrow account, so check with Westwood annually to be sure you’re not paying too much.

So do I bundle, or do I buy standalone policies?

The only guaranteed way to get the best price for the right policies for all the insurance products you need is to research and shop around. Then once you’ve found a bundle or standalone policies that work for you, you’ll still want to check your rates periodically as your circumstances may change.

That’s where we come in! Westwood can get take the guesswork out of the equation. An independent agency like Westwood helps you find the best prices because the shopping is done for you. You’ll see if bundling enables you to get the right coverage at the best price or if there are options that suit your needs and your budget that are with a different company. The best part is you don’t have to spend time shopping around yourself. Westwood does it for you.

As an independent insurance agency, we work with more than 40 insurance companies to find you the right coverage at the best price. You’re getting the policy you need to protect what matters most without paying more than you need to, with or without the bundle. Contact your Westwood agent today.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.