Does bundling insurance save money?

Posted in Auto, Home

A woman with long hair stands in front of an open SUV trunk and hands full bags over to a man.

The possibility to save money can be a large deciding factor when you’re shopping for one or multiple insurance policies. If you’re a homeowner with one or multiple vehicles in your household, especially with a youthful driver, you might be looking into discounts or other money-saving strategies like bundling.  

There are several benefits of bundling your insurance, but does bundling insurance save money? We have the answers to help you decide if insurance bundling is right for you.

The bundling basics 

Another name for bundling insurance is a multi-policy discount. A policyholder can choose to “package” or bundle two or more insurance policies when placing with a single insurance carrier. Most commonly, carriers will offer a multi-policy discount for home insurance and auto insurance bundles.

Why insurance companies offer insurance bundling options

Here are a few reasons insurance companies offer insurance bundling: 

  1. To simplify insurance and promote ease of use—customers can navigate anything from making a payment to filing a claim for multiple insurance policies.  
  2. To reward customers for purchasing several insurance policies with them—multi-policy discounts are the most common perk. 
  3. To keep customers from shopping around—happy customers who get quality service for a discount are less inclined to leave. 

While home and auto insurance bundles are very popular, they aren’t the only option. Check out these other ways to bundle and save: 

  • Condo and auto
  • Renters and auto
  • Home, auto and boat
  • Home, auto and motorcycle
 
Learn about our
Auto Insurance

What you can expect to save with bundle pricing

According to Forbes, you can save an average of 14% for a home and auto insurance bundle. But the exact dollar amount you save from bundling will depend on what insurance you bundle and what kind of coverage you choose.  

Talk to a Grange Independent agent today to learn more about bundling options and savings.

Explore your options: Should you bundle or buy separately?

Although bundling insurance is a great way to save money, it may not be the best fit for your coverage needs. Weigh these pros and cons of bundling insurance: 

The benefits of bundling your insurance

  • You can save money on your insurance premiums.
  • You can save time navigating different carrier details including logins and policy news.
  • You can build a relationship with your independent agent so they can better understand your insurance needs.

The possible limitations of bundling your insurance

  • You may have to select coverage that isn't exactly what you want to be eligible to bundle.
  • You may only receive bundle pricing for the first year or some discounts may gradually roll-off your policy.

Buying separate insurance policies also has perks and drawbacks:

Pros of buying separate insurance policies

  • You get to shop around for coverage that matches your wish list.
  • You can use the separate experiences from multiple carriers to inform how you shop in the future. For example, you might move all your insurance policies to your favorite carrier after one year.

Cons of buying separate insurance policies

  • You may pay more for your premium because you aren’t receiving a bundling discount.
  • You may spend more time and energy comparing prices and coverages.
  • You may spend more time using your insurance accounts across several carriers.

Additional insurance discounts from Grange

With Grange, you can save money on your insurance for driving safely, utilizing smart technology, completing DIY inspections and more. Check out just some of the discounts we offer: 

Home insurance discounts 

  • Advance quote discount
  • Home buyer discount
  • Smart fire alarm discount
  • DIY home inspection discount

Auto insurance discounts 

  • Good student discount
  • Paid in full discount
  • Safety technology discount

Visit the home discount and auto discount pages to learn more ways you can save.

How to bundle your insurance

Bundling your insurance is as easy as contacting your insurance agent. Contact your independent agent as soon as possible to start the process. If you’re new here, find a local Grange Independent Agent to start a quote today.  

References  
Forbes 
Insurance Information Institute (III)   

Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.


Related resources