These days, there is no shortage to what you can insure – be it your car, couch or cat. Not only is it exhausting keeping track of so many insurance policies, but it can also be costly.
Fortunately, there is a way for you to use this policy abundance to your advantage. Bundling numerous insurance policies under the one provider can earn you some handy discounts on your premiums.
We’ll explain how to bundle your insurance, and whether it’s a smart choice for your circumstances.
Why Bundle Your Insurance?Insurance providers will often provide financial incentive for you to take out more than one policy with them. It’s a bit like a reward for your loyalty to them. You’ll usually see this referred to as a multi-policy discount.
Exactly how much the discount will be can vary greatly, and ultimately depends on the provider. Factors such as how many policies you take out, and how you purchase them (online vs. over the phone) will also play into how much your price may be slashed.
As a general rule, multi-policy discounts typically range from 5% to 25%.
What policies can you bundle?The number of policies you can bundle together will ultimately come down to what cover the insurer provides.
For example, let’s say Company A is a leading provider of car insurance. It’s the only type of insurance they provide. On the other hand, Company B offers car, home, health, travel, and income insurance.
Company A might offer multi-policy discounts to insure more than one vehicle with them. But you’ll have to take your remaining policies elsewhere. Company B however, might offer a 10% discount on each additional policy you list with them. This could see you save on up to five policies at a time.
Pros of Bundling your Insurance Multi-policy discount – saving 5% – 25% per year across several policies can add up to some hefty savings back in your pocket Streamlines process – rather than staying on top of numerous account numbers and policy details, it’s all managed in the one place for ultimate convenience Time saving – the convenience makes renewal time a breeze Extra perks – some companies may provide additional perks or rewards to bundled customers Cons of Bundling Your Insurance Restricted choice – as we mentioned earlier, your choice of provider is drastically reduced depending on the number of policies you want to have under one roof Might not be the best policy – be careful not to compromise the cover you need for a less comprehensive policy with a provider offering a multi-policy discount Penalised for loyalty – if the price for one policy goes up at renewal, you may have to weigh up whether it’s worth remaining with the provider for the discount, or shopping around for a better deal.It’s important to note that not all insurers will offer a multi-policy discount, regardless of how many policies you hold with them.
Annoying, huh?
If you hold numerous policies and are eager to capitalise on bundled savings, we suggest shopping around to find a provider that will reward your loyalty. Our online comparison tool makes it super simple to weigh up top insurance providers in the one place. Get started for free!