We often hear that ‘bundling’ is the way to go to save money on insurance. However, there are many situations in which keeping your home, auto, and other policies all with the same company can cost you more in the long run.
We have found that there is a greater than 80% chance a given customer can save 10% or more on home/auto and other insurance costs simply by shopping each year for the best combination of ‘unbundled’ companies.
This of course is not easy to do on your own, but Zinsurance is here to do the work for you!
Of course, insurers are all in favor of ‘bundling’ because it helps improve their retention of customers from year to year. So, they are more than willing to provide a large discount to attract long- term customers. However, bundling is usually not the most cost-effective option overall for the customer.
Would you rather pay one bill, or make two payments and save hundreds? With Zinsurance & auto-pay, this is a no brainer.
Here are some of the facts about bundling that all consumers should know...
- Specialty carriers often provide much lower rates for certain lines of business than the larger national carriers that offer bundling discount. These rates are often over 40% below what national carriers charge. The savings you can achieve by ‘splitting’ your insurance policies is often much greater than the multi-policy discount you get through bundling.
- Even if your policies are not with the same company, if you use the same agent for both, you can often get a discount that is the same as the ‘bundling’ multi-policy discount. This discount is commonly referred to as an account discount.
- Advertising that promotes ‘bundling’ is costly. Although you get a discount by keeping your policies with one company, these same companies pass on the cost of advertising and marketing to you in the form of higher rates. This often makes your ‘bundled’ price higher than you could pay if you split your policies.
- In general, bundling does not make paying your insurance bills much easier. Auto, home, and other insurance are written on separate policies that usually have different effective dates and policy terms. So even if you have your policies all with the same company, your insurance bills will often be due at different times during the year and are paid separately not in one lump sum amount.
- Bundling tends to make consumers complacent, thinking they have the best deal and that large national carriers are ‘safer’ than regional specialty carriers. However, bundled consumers will often pay more over time than they would if they shopped for the best price and coverage each year.
Zinsurance is a D2C digital agency formed by insurance experts with a mission to change insurance for the better. We focus on saving homeowners time and money using the latest data and technology driven by an end-to-end mobile app that manages everything from quote to claim. We are innovators in all areas including marketing, coverage, product, pricing, and process. Our number one goal is to ensure our customers are protected when they need it the most, and we are reconstructing home insurance from the ground up to make sure we do just that.
