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Myth Busting: Insurance Bundling

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Whether you purchase your insurance from one company or several, you should review your policies regularly. Underwriting changes may affect rates. Changes in your life circumstances — marriage, the birth of a child, your credit score — will affect your insurance needs and prices.

Should you keep policies separate, underwritten by different insurance companies or will bundling them with one insurer save you money?

Here are some popular insurance bundling myths to help you decide.

1. Bundling will always save you money
Bundling usually give you a 5-25% discount. However, automatically renewing year after year with the same insurer could be costly: you’re less likely to shop competitors and prices tend to increase at renewal time and can grow beyond what you would pay with another company. Look at your policies separately to make sure you’re getting the best rate on each one.

2. Bundling means “set it and forget it”
Avoid rate creep by shopping around for policies, both separately and bundled:
• Every other year.
• If you see a rate increase of 10% or more at renewal.
• Whenever you have a major life change, including marriage, divorce or a move.
• If your credit has improved.
• Just after the three-year anniversary of a moving violation, ticket or accident.

When comparing quotes online, search for bundled and unbundled policies and look for the same coverage as your current insurance.

3. Price increases, resulting in a higher premium, are normal
Let’s say you get a quote for a combined home and auto policy with a good discount over what you pay separately. What happens when your premium goes up at renewal? You might pay the higher premium, rationalizing price increases are to be expected. Respond to price increases by shopping around.

4. I have to do all the shopping myself
An insurance agent can shop all your policies with various companies to find the best insurer for you. You’ll still have one agent for all your policies and
questions — they just do the work to make sure you get the best rates and coverage.

Let us do the shopping for you! City Credit Union Financial Services, LLC offers a range of insurance products with competitive rates, discount benefits and reliable protection. Our insurance agent offers personable, one-on-one service. Call or email Fredrick today for a free quote.

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