What Is Insurance Bundling?

April 15, 2020 by Dan Green

Bundling is an insurance term for when a person get two or more insurance policies from the same insurance company and receives a discount for it.

This discount is sometimes called as a multi-line discount because insurance companies combine multiple policies into a single contract of insurance.

Most insurance types can be bundled for a multi-line discount, including:

  • Auto insurance
  • Homeowners insurance
  • Renters insurance
  • Condo insurance
  • Life insurance

Other insurance policies can be bundled, too, including boat insurance, motor home insurance, and personal umbrella liability insurance.

The more you bundle, the more you can save. Some insurance companies offer discounts of twenty-five percent or more.

You can also give yourself protection against getting dropped by your insurer.

Insurance companies get nervous when a customer files multiple claims in a short period. Too many claims, such as a string of unfortunate car accidents or home break-ins, and your insurer may drop you from coverage.

They’re less likely to drop you after making an insurance claim if your insurance policies are bundled. This is because insurance companies treat bundled insurance policies differently from stand-alone ones.

Customers who are insured for multiple items, such as auto insurance and renters insurance; or, two cars at the same residence get more leeway with insurers than customers with only a single insurance policy.

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