Bundling Insurance: Pros and Cons
If you’ve ever seen a Geico or Progressive commercial, you have probably heard the term “bundling insurance” thrown around, but is it actually worth it as a commercial provider?
Bundling insurance is when you choose to get multiple faucets of insurance through the same company. While it can sometimes save you money, there are potential downfalls as well.
Pros of Bundling Insurance
For commercial insurance, the pros of bundling your insurance might include:
There are multi-policy discounts that might be applied to your bundled insurance. Depending on the provider and your personal preference, the discount can range anywhere from 5 to 25%.
Mehmet Murat Ildan said, “If you have a complex life, make it simple; if you have a simple life, continue it that way!”
If you’re a small business owner, the concept of a simple life might be long gone—the pursuit of your passion can take up all the hours in the day. This is why finding small ways to declutter your life is crucial to finding balance.
Bundling your insurance might be a small way to organize your life and finances.
If you make any claims on one type of insurance but are covered by the same company for another type, you are less likely to be dropped by them.
Cons of Bundling Insurance
Not Always Cheaper
While one of the main draws towards bundling insurance is saving money, there are cases where this isn’t the case. However, this all depends on your history. If you have a poor credit score or traffic violations, this might hinder your chances of getting a higher discount for bundling (likely in the 5% range compared to 20%).
If you choose to bundle your insurance through the same company, there isn’t a ton of room to look for other rates. If you’re bundling your insurance through the same company, they might raise your rates without much room for discussion.
Keep in Mind
If you do feel like bundling your insurance, there are some guidelines you can follow to ensure you understand what you’re getting into (even though there are short and long-term benefits of bundling).
- Evaluate all third-party options
- Compare quotes
- Keep an open mind
Contact us at Competitive Edge today for information on bundling insurance!