Insurance Bundle: Definition
The term Insurance Bundle means that a customer has more than one insurance product with the same insurance company (e.g. home and auto insurance). Normally insurance companies offer more than one insurance product and therefore they are interested in selling multiple products to one customer. In order to encourage customers to buy more products from them, insurers often suggest several products in a bundle that offer some discount (also called bundle discounts).
Most property and casualty insurance companies tend to actively sell home and auto insurance products, but they may also offer bundles with products such as boat insurance, seasonal home insurance, RV insurance, and motorcycle insurance, etc.
Insurance Bundle: Recommendation
When searching for insurance, it is helpful to consider bundle discounts offered by insurers. Typically a bundle can save 5-10% on an insurance policy’s premiums, but most property and casualty insurers offer these discounts and thus it is more important to get insurance quotes first. Calculate the bundle savings after getting quotes, as opposed to going to the insurer that claims to offer high bundle discounts. Example:
Bundle Discount of 5% on quote of $1,800 per year means that your rate will be $1,710
Bundle Discount of 8% on quote of $2,000 per year means that your rate will be $1,900
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