Insurance Bundling 101: Understanding the Basics

By the Mercury Team

Bundling. You hear and see this word all the time in insurance commercials and ads, but what does it really mean, and why should you consider it? In this post, we’ll explore the ins and outs of insurance bundling, from understanding the basics to finding the best deals and everything in between.

What is Insurance Bundling?

Insurance bundling is when you combine multiple insurance policies — such as home and auto insurance — under one provider. Essentially, you’re creating a package deal. Most insurance companies offer discounts to customers who choose to bundle because it’s mutually beneficial: you get a reduced rate, and they secure more of your business.

How to Find the Best Home and Car Insurance Bundle

With so many providers offering bundling discounts, it’s a good idea to dig a little deeper to ensure you’re getting the deal:

• Compare bundles: Don’t settle for the first bundle you see. Get quotes from several different insurance companies. You can do this online or by giving them a quick call.
• Look beyond the discount: Sure, home and auto insurance discounts are great, but don’t let them be the only deciding factor. Carefully compare the coverage each bundle offers. Does one offer higher liability limits? Lower deductibles? Make sure you’re comfortable with the level of protection before you commit.
• Evaluate custom service and claims process: You want a company that’s going to be there for you when you need it most. Check out reviews, ask for recommendations, and see how each provider handles claims.
• Don’t be afraid to ask questions: If you’re unsure about something, don’t hesitate to ask your insurance agent or representative for clarification. They’re there to help you understand your options.

What are the Most Common Types of Insurance Bundling?

There are plenty of ways to mix and match policies to suit your needs. Here’s a look at some of the most common types of insurance bundling:

• Home + Auto: This is the classic combo and probably the most popular bundling option out there. When you bundle home and auto insurance, you’ll be able to protect your two most valuable assets with one provider.
• Renters + Auto: Your renters insurance covers your belongings and liability in your rented space, while the auto policy takes care of your car. This combo is perfect if you’re not quite ready to buy a house but still want to protect your possessions and vehicle with one easy package.
• Home + Umbrella: An umbrella policy provides additional liability coverage above and beyond what your home insurance offers, which is especially helpful if you have substantial assets.
• Home + Business Owners: If you’re running a business from your home or own a small business, this bundle might be the right fit for you.

Finding the Best Bundled Insurance Discounts

How do you find the best discounts and get the coverage you need? Let’s explore some key factors to consider when searching for the perfect bundled insurance deal.

Balance Coverage with Discounts

The best bundles strike a balance between saving you money and providing the protection you need. Start by reviewing your current policies and identifying any gaps in coverage. Then, when you’re comparing bundles, look for ones that offer the right mix of protection for your home, car, or other assets.

Take Advantage of Multi-Policy Discounts

One of the biggest perks of bundling your insurance is the multi-policy discount. For example, with Mercury, you can save up to 14.7% on your homeowners insurance just by bundling it with your auto policy. These discounts can really add up, especially if you’re bundling more than two policies.

Keep an Eye Out for Special Offers

Insurance companies sometimes run promotions or offer special discounts for bundling at certain times of the year. It’s worth keeping an eye out for these deals, as they can offer even greater savings. Signing up for newsletters or alerts from your preferred insurance providers can help you stay in the loop about any upcoming offers.

What Are the Benefits of Bundling Insurance?

Here’s a closer look at the key benefits of bundling insurance:

Cost Savings and Discounts

When you combine policies like home and auto insurance, many providers — like Mercury — reward you with a multi-policy discount. Over time, these savings can add up. It’s a simple way to keep more money in your pocket while ensuring you’re covered.

Simplified Management and Convenience

Bundling your insurance policies also makes managing them a lot more convenient. Instead of dealing with different companies for each policy, bundling allows you to consolidate everything under one provider. This means fewer bills to pay, one point of contact for any questions or issues, and a single renewal date to remember.

Potential for Enhanced Coverage Options

Some insurance companies offer special features or extras that are only available to customers who bundle. Whether it’s higher liability limits, extra protection for your valuables, or even perks like identity theft coverage, bundling can give you access to more comprehensive protection. Plus, it’s often easier to customize your policy when everything’s bundled together, so you get exactly what you need.

Conclusion

Bundling your insurance policies is a smart way to save money, simplify your life, and ensure you have the right coverage for your needs. If you’re looking to take advantage of these benefits and find cheap auto insurance and homeowners insurance that doesn’t compromise quality, Mercury can help. With competitive rates, great discounts, and a commitment to excellent customer service, we’re the perfect partner for all your bundling needs.

Contact us for a fast, free quote today!