Bundling insurance policies involves purchasing more than one insurance policy from the same carrier. For example, people regularly bundle their homeowners' and auto insurance policies. Bundling saves you money because most carriers offer discounts to those who buy multiple policies from them. However, this isn't the only benefit of bundling insurance policies; other advantages include:
Convenience
Insurance is a necessity, but few people take joy in the paperwork and processes it involves. The more companies you have to deal with, the more inconveniencing it may be for you to manage your insurance-related issues. However, buying all your insurance needs from the same insurer helps you to reduce this hustle.
For example, bundling allows you to have a single agent review your coverage in one sitting. You don't have to hope from one agent to another when you want to renew your homeowners', auto, and boat insurance. You may also be able to have a single bill from your insurer, instead of managing multiple bills from different carriers.
Protection
Every insurance policy carries a cancellation policy, which details why and when you or your insurer may terminate the relationship. For example, your auto insurance carrier may cancel or fail to renew your policy if you if you have too many accidents in your driving history.
Most insurers don't have a specific number of accidents that trigger cancellation; they mostly handle non-renewal or cancellation on a case-by-case basis. Therefore, you may be spared the cut if you get into several accidents but have multiple policies with the insurer. In such a case, the insurer may evaluate the benefit of letting you go versus that of keeping your business before making a decision. You might survive the cut if your case wasn't too serious.
Single Deductible
The deductible is the out of pocket money you have to pay when you file a claim. Your insurer then tops up the difference needed to rectify the damage. If you suffer different damages, you have to pay deductibles for each of them even if they are caused by the same incident. For example, if a storm damages your car and house, you have to pay deductibles to your home insurance carrier and auto insurance carrier.
However, when you bundle policies, some insurers will allow you to pay a single deductible if the same incident causes you to file multiple claims. Therefore, you may only have to pay a single deductible if a storm damages both your house and car, and both were covered by the same insurer.
For more information, contact Red Oak Insurance Agency or a similar company.
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