Bundling Insurance Policies Helps Consumers Build Significant Savings 

Bundling simply means getting multiple types of insurance policies, like your homeowners insurance and car insurance, from the same company. Insurers often offer discounts for customers who bundle, which makes it a great way to save money without compromising on coverage. Since most people need several types of coverage, personal insurance bundling can also save you the time and attention you’d spend paying multiple bills, with multiple carriers. Most people will want to consider these major types of insurance policies. 

Auto Insurance

Depending on the type of coverage you opt for, auto insurance is mandatory, with a minimum requirement of liability coverage, that applies if you’re at fault for an accident and held responsible for compensating the other driver and their passengers. There are two components to liability coverage. Bodily injury liability pays for lost wages, and medical bills if you injure someone else in a car accident. Property damage coverage helps pay to repair or replace another driver’s vehicle or other property damaged by you with your car.

In addition to the legal minimum of liability insurance, it’s a good idea for most drivers to maintain collision and comprehensive coverage to protect their own vehicles as well. Collision coverage can help pay for repairs if your car is damaged in an accident with another vehicle or stationary object such as a tree, and Comprehensive coverage pays for damage caused by anything other than a crash with another vehicle or stationary object, for example, hitting a deer or a tree limb falling on your car.  Natural disasters like hail damage as well as theft also fall under comprehensive coverage.  There are discount options for personal insurance bundling within your auto insurance policy.  You can receive a discount if you have multiple vehicles in your household that are included on the same policy.  This is in addition to the discounts offered for bundling your home and auto policies together with the same insurance company. 

Home Insurance

Whether you own or rent your home, it’s important to have the right coverage to protect your belongings and your living space. In general, homeowners insurance covers theft, fire damage, and storm damage. Beyond these basics, homeowner’s insurance policies can have a lot of variation in their details. This means it’s a good idea to talk to your trusted independent insurance advisor about your budget and risk level to ensure you have the right coverage. For example, if you have valuable jewelry or art in your home, you may need a policy add-on to cover these pieces for their full value since most policies limit the amount of coverage available for jewelry and other types of valuable collections. If you’re at risk of flooding or sustaining earthquake damage you’ll want to consider a separate policy for flood or earthquake coverage.  Losses due to these types of situations are not covered in the majority of standard home insurance policies.  It is important to note that in insurance terms flooding is not a water line break that fills your room up with water, nor is it a sewer line back up, rather it is when excess water accumulates on land that is normally dry and affects two or more acres of land or two or more properties. 

Renters insurance is usually more straightforward. Since your landlord is responsible for the building itself, your insurance only needs to cover your belongings and liability exposures. Your policy should pay for replacements if your possessions are stolen or damaged.

An important consideration for both home insurance and renters insurance is the liability coverage levels you purchase.  Society has become very litigious, this coverage helps pay for legal costs and settlements you are found liable for whether they occur at your residence or while you are at a sporting event or shopping at the grocery store.

Specialized policies for mobile homes and condos are also available. These policies are designed to address the specific needs and risks involved in owning these types of homes. Like any type of home insurance, they can be bundled with your auto and other personal coverage for excellent savings.

Additional Insurance Bundling Considerations

Bundling automotive and home insurance is incredibly smart and efficient. However, there are additional considerations that can also be bundled and drive more savings for consumer policies.  An example of an add-on policy is recreational vehicle insurance. If you own an RV, motorcycle, boat or ATV — it’s important to make sure it’s properly insured. Just like with auto coverage, you can choose recreational vehicle insurance that offers liability, comprehensive, and collision coverage. You can also opt for medical payments coverage, which pays for your healthcare if you’re injured. Medical coverage isn’t always necessary but can be incredibly valuable in certain situations. For example, some health insurance policies don’t cover injuries caused by a motorcycle accident. If this is the case for you, medical payment coverage is a good idea.

Further Bundling Options

In addition to the standard policies discussed above, these are some other types of coverage you may want to consider as part of your personal insurance bundling plan.

Identity Theft

Identity theft is increasingly common and can potentially disrupt your life for years. Identify theft insurance covers the costs associated with disputing fraudulent unemployment claims, fixing your credit report, and other steps you might need to take after identity theft. This can include attorney fees, certified mail or long-distance phone calls, fees for reapplying for loans and lost income if identity theft hurts your career. This coverage is usually bundled with your homeowners or renters insurance as an add-on coverage.

Personal Umbrella

Umbrella insurance covers both situations where you’re held financially responsible for more than what your standard home insurance or auto insurance policy covers. For example, suppose you have a $1,000,000 umbrella policy and you’re found responsible for a car accident and have $250,000 in auto liability coverage. If a court awarded the other injured driver $1,000,000 in personal injury damages due to hospital costs, lost wages, pain & suffering, etc., your umbrella policy would cover the additional $750,000, that’s above your auto liability coverage limit. Umbrella coverage can also pay for legal fees if you’re sued, including libel and slander claims. If you have a high net worth, umbrella coverage can protect your wealth if you’re determined to be responsible for someone else’s injury.

Data Backup

While data backup services aren’t exactly a type of insurance policy, they provide the same function of protecting you and your property from an unexpected problem. Independent data backups ensure that your photos, documents, and files are safe, even if your devices fail.

2023 Is a Great Time to Bundle Your Personal Policies

A great example of a leading insurance services company is ALINK Insurance Services®, an independent agency that has designed tailored and bundled policies since 1959 in Colorado, Utah and surrounding states. Combining policies provides consumers with the coverage needed to protect assets and belongings, while helping consumers qualify for the best rates.  

In the wake of inflationary times, with costs rising in many areas — just about everyone is looking for ways to cut expenses where possible. Personal insurance bundling is a great way to maximize protection, and reduce costs in-parallel.