Most people tend to stick with the same insurance companies their parents had for reasons of convenience, and never really think about switching policies. Many people don’t even think about bundling their policies, and purchase insurance separately.
However, bundling your policies can help consumers save big time on insurance. Many companies offer policies that gives car insurance companies the opportunity to also insure their homes and their lives. In fact, most companies give the best deals to consumers who are willing to bundle policies since they want their customers to stick around for years, and not shop around for better deals all the time.
That’s why many companies offer multiline discounts for consumers who are willing to insure more than one type of insurance. The same goes for adding more products to one line, for example an additional car or home insurance policy. The main reason for offering good discounts is that companies can benefit from your bundling your policies. Especially when it comes to life insurance, people are quite unlikely to switch insurance because of the difficulty in switching policies. If they can get consumers to bundle policies with life insurance, it’s quite unlikely that the customer will switch to a different policy. Moreover, by giving discounts, companies are able to retain customers and can reduce the cost of customer turnover.
In order to bundle, companies may offer you great discounts, but it’s still important to compare different multi-line insurance packages. You might want to un-bundle your policies after a while and may seem your rates go up if you do so. That’s why it’s also important to look at rates for single insurance lines.