Save money on insurance by bundling policies
Hamm advises bundling your policies for a discount on your insurance. Insurance companies will regularly offer you better insurance rates if you buy multiple insurance policies from the same company.
Most major insurance companies offer a wide range of insurance types, from life insurance and auto insurance to rental insurance and homeowners insurance. It’s good business, since most of the business units you need for one are going to also be used for the other insurance types. They save money because of the overlap.Skip to next paragraph
The Simple Dollar is a blog for those of us who need both cents and sense: people fighting debt and bad spending habits while building a financially secure future and still affording a latte or two. Our busy lives are crazy enough without having to compare five hundred mutual funds – we just want simple ways to manage our finances and save a little money.
Subscribe Today to the Monitor
Of course, when there’s a market that lots of different companies are competing in, there’s going to be price competition. Which company is going to offer the lowest prices?
What happens when you add these two things together? Bundling.
Insurance companies will regularly offer you better insurance rates if you buy multiple insurance policies from the same company. If you are new to insurance or have your policies spread among many companies, strongly consider bundling.
So, how do you save money with bundling?
Your first step is to check out the bundling offers. If you already have insurance you’re happy with, start there with quotes on new policies. Don’t be afraid to ask for bundling discounts when you do this.
If you’re new to insurance or are unsure where you would want to bundle policies, start by examining the field. Identify some insurance houses with solid customer support (trust me – you don’t want an insurance company that ignores you when you need it), starting with Consumer Reports as your first research tool.
Don’t be afraid to get multiple quotes when you’re shopping around, and don’t be afraid to ask about bundled rates when you get those quotes. Get a quote from each insurance company that seems to fit and go with the one that offers you the best rates.
What if you already have all of your insurance with the same company? Make sure they’re actually giving you a bundled rate. Examine your bill carefully and make sure there is a discount for having multiple types of policies. If you’re getting separate bills, you’re probably not getting reduced rates.
If that’s the case, call your insurance company and ask about bundling. If they won’t do it, then they’re pretty much asking you to shop around.
The goal, as always, is to get great insurance that keeps as much money as possible in your pocket.
This post is part of a yearlong series called “365 Ways to Live Cheap (Revisited),” in which I’m revisiting the entries from my book “365 Ways to Live Cheap,” which is available at Amazon and at bookstores everywhere.
The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on www.thesimpledollar.com.