Discounted Homeowners Insurance: Can Bundling Save You Money?

Everyone needs home insurance to protect themselves and their families. It does not matter whether the home is a condominium, townhome, or a single dwelling house. Before purchasing any insurance policy, consider bundling your plans. Bundling your homeowner's insurance policy with the other policies you need within one company can earn you multiple discounts.

What Is Bundling?

Bundling is combining multiple policies within one insurance provider. Instead of paying separate bills from separate insurance companies, it is possible to bundle the policies you need with one single company. The most popular insurance policies to bundle today are homeowners and automobile.

Why Bundling Is Encouraged with Insurance Providers

Bundling your homeowner's insurance policy is generally cheaper than having separate policies with separate insurance companies. It only makes sense that insurance companies encourage bundling. They want the money that the multiple premiums bring into their businesses. Insurance companies can offer competitive discounts on multiple policies because they calculate discounts using the total amount of premiums paid. The higher the total of the premiums, the higher the discount they can provide. 

Insurance companies like to reward long term customers with loyalty discounts. This is because it costs them money to process new customers and cancel customers that wish to change companies. Even if they seem to lose money initially on a bundled deal, they lock their customers in for years because it's too much of a hassle to switch. 

How Bundling Saves You Money

Bundling saves you money in the fact that you get great discounts. Any changes in your life, such as getting married, having children, or moving to a new home are easier to document with just one insurance provider. So just one phone call will handle additional discounts. 

Bundling your policy also means you won't be faced with multiple fees across multiple providers. If you have just one bill to worry about, it should be paid on time. If you run into a financial jam, you are looking at just one late fee. Many insurance providers will allow their customers to pay their bills in monthly or quarterly payments. However, in doing so, a convenience fee is tacked on. However, using just one provider gives you that one fee. 

Even if the time aspect seems to be enough to bundle your policies, you still should do your research. Start the process by learning which policies best suit your needs as you can bundle life, auto, and umbrella insurance with your homeowner's insurance. Then research insurance companies, such as East Tennessee Mutual Insurance, that will provide those needs and review their quotes in full. Finally, request a discount for bundling the policies. Your pocketbook will thank you.