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Is Bundling Insurance Coverage a Good Choice for Seniors?

Finance & Planning | Apr 14, 2017



Seniors are pelted with advertisements for insurance multiple times per day. Between magazines, newspapers, TV, the internet, direct mail, and other advertisements, it can be tough to weed out the good from the bad and understand the best options for your insurance needs. 

If you are enjoying your golden years but struggle to understand the best options to manage your insurance, a bundle could be the right choice for you. But before you make any hasty decisions, it is important to understand your current insurance and any prospective changes before pulling the trigger.

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Review Your Current Insurance Coverage

Before making any changes to your insurance, the first step is to understand your current insurance. Pull up all of your policy information either online or in hard copy format and look at what you are paying and what you get.

Review both your auto and homeowner or renter policy to see how much you are paying each month and how much coverage you get for that cost. Sometimes you may find that you are paying for far more coverage than you need and could save money by making small changes to your existing policy. Other times you may see that your insurance no longer aligns with your needs and starting over with new policies is the best option.

Ask About Bundle Discounts

If you are generally happy with your current coverage, look at your various policies and count up the number of insurance companies you work with. If your insurance comes from multiple carriers, you could save around 16% by bundling. The savings varies by state. According to a 2015 Lifehacker study, savings start at 7.6% in Florida and go as high as 22.3% in Georgia. Depending on where you live and your insurer, your savings will vary.

If you have multiple insurance policies at the same insurer, look at your documents to make sure you are getting a bundle discount. You can always give them a quick call to find out if you are eligible for additional bundle discounts that you are not currently receiving. If your insurance is through multiple insurance companies, call them and ask what you would pay and what you could save from bundling your insurance under one roof.

Assess Your Potential Savings

After calling your existing insurance companies, compare your potential bundle savings if you were to combine your policies with one insurer instead of keeping them separate. You might find a very clear answer right away. If you can quickly save 20% by moving your auto insurance to the same company where you have your home insurance, or vice versa, it is probably a smart move. But don’t make any changes until you shop around a bit more.

Insurance companies try to keep you as a long-time customer to maximize their profits, but brand loyalty does not always pay off for you as a customer. Even if you get a modest loyalty discount on your bill, you might be able to save more by moving both your home and auto insurance to one new insurer. The only way to find out is to shop around. If you want an easy shopping experience that allows you to quickly compare multiple insurers, SelectQuote has you covered. If you shop around, you may quickly find that you can save hundreds of dollars per year. Wouldn’t you rather spend your money on family, travel, and other fun experiences rather than insurance? Thanks to the power of the internet, you can find out how much you can save in just a few minutes!

Sometimes Bundling is not the Right Choice

While bundling can save you more than 20% on your insurance, that does not mean it always saves you money. Sometimes combining your policies under one insurance company could end up costing your more money, so make sure to check your math before updating your policies.

Maybe moving your auto insurance would get you a 15% bundle discount but your rate would go up by 20% because you are currently at a cheap, great auto insurance company. In that case, you would want to leave things as is rather than pay more for your insurance.

Also make sure to check your coverage levels at your current insurer and prospective insurer to make sure you are doing a real apples to apples comparison of the policies. Comparing a policy with $200,000 in coverage and a $250 deductible to a policy with $100,000 in coverage and a $500 deductible will yield different rates, but also much different coverage. Outline your needs first and compare rates of comparable policies second to ensure you make the best decision.

It Never Hurts to Shop Around

Bundling is generally a great decision for seniors and everyone else. Bundling saves you money, helps you cut down on your bills, and simplifies your insurance and personal finances.

However, the only way to know you have the best deal is to shop around. It used to take hours of phone calls and paperwork to know what the best options are for your insurance, but SelectQuote aims to solve that. Get multiple competing quotes online or by phone. Call an agent or get a rate online at SelectQuote. It doesn’t cost a dollar to learn more, and the savings could be massive!

Whatever you decide, always make sure you compare multiple options before making a final decision. Don’t just guess or trust your insurance company to give you the best rates, shop around and find out for yourself if you can save a bundle by bundling your policies. The worst case scenario is wasting a few minutes, but the best case is saving hundreds or thousands of dollars per year. That is a few minutes worth investing.