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.

Business Wire
A billboard advertises auto insurance. Hamm writes that one key to getting inexpensive insurance is to bundle together policies.

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.

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.

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.