Do you find it inconvenient dealing with your insurance about your different policies? Especially if you have a busy schedule, you sure want to have all-in-one insurance. Who wouldn’t want an easier way, right? And what about paying late because you forgot due to some important reasons? You need to pay your policies on time to prevent any lapse. If you have multiple policies, then what will happen next if you tend to forget paying them most of the time?
It would save you from trouble if you have one policy to think about and pay for. Of course, you need to insure a lot of things such as your home and your car. It may even include jewelry and other assets. If you count them all, there are two or more policies that need to be attended to. Thus, the rise of packaged insurance policies is on!
As an independent insurance agency in Denver, Colorado, and over 40 other States, we would like to help you get acquainted with package insurance policies. Let us help you ease out your worries about insurance.
What is the right term? Is it Bundling or Packaging?
You may ask, is bundled insurance the same as packaged insurance? The answer is NO. Bundled insurance means you get to purchase two or more policies from one insurance company. The best example is if you happen to buy both home insurance and auto insurance from them. This generates a discount for your loyalty from the insurance provider that you chose.
There’s a difference when it comes to package policies. It refers to the simplified way of putting all your coverages in one policy. This policy may include your home and auto insurance in one or some of your insured assets.
What does a package insurance policy mean?
Suppose an accident happened. Both your home and your car are damaged to the point of staying temporarily out of your home. You need to talk to the insurance company to assist you with the costs. However, you have them insured by two different insurance companies. How was that for inconvenience?! You would need to deal with two agents. At the same time, you need to find ways to settle for your temporary stay and other stuff to focus on.
If you have all your policies in one package, you may find it easy to deal with the problem. You may have a lot of time to work on other things that need your attention. Package Insurance means your home and auto insurance or other coverages are included in one policy. One policy, one company, and one payment for your insurance needs.
What are the benefits of packaging auto and home insurance?
The benefit is a win-win for you and for the insurance company. Of course, everybody knows that insurance companies would prefer to offer their clients package insurance policies. Not only because they will gain more revenue but because they could sell out more without advertising further for different policies.
Having their clients take package policies or coverages means retaining their business for a long time. Ever heard of the saying “hitting two birds with one stone”? It happens when the insurer has the client sign up for the package insurance. That would earn more clients for sure! As for you, the client, here are the advantages you wouldn’t want to miss.
If you go to the market, sales agents offer to lessen the price of products if you buy them in a package. They give a certain percentage of discounts if you will take advantage of their offer. This is the deal every packaged product usually promotes.
Package insurance policies tend to do the same. It can be more economical rather than buying policies one by one. Besides, insurance companies give more perks when you avail of package policies. Therefore, it makes the package worth buying.
Talking with the same insurance provider for all your policies would save you time in negotiating about your claims and obligations. The same way goes if you have all the coverages that you need in one policy. One contract or agreement to sign with is very easy to attend to. It would be easy to log in for information because you only have one policy to look for. Having single passwords to remember is an advantage for us people who tend to forget things easily.
Talk about the situation mentioned above, where your house and your car are damaged at the same time. Processing your claim would be more convenient if you have one policy to mind. Also, having the same insurance company to deal with won’t give you many hassles during the process.
One payment for all
Let’s say, you have a lot of policies to pay for. Apparently, the other one is placed in another insurance company. You’ve been very busy with an important matter and forgot the scheduled monthly payment of that policy. What will happen next? Your insurance may lapse. You need to keep track of the details of each policy as well as the payment schedules to avoid lapses.
If you pay for one policy, it is less likely to miss payments for your insurance. Surely, you won’t let that happen. Isn’t it more comfortable if you will only pay one bill for all types of coverage that you need? Unlike if you have to pay for each type of coverage, you will need to care about it one by one. This time you only have one bill to pay for everything.
Single deductible only
Each coverage – home and auto insurance, have their own deductible before your insurance kicks in. However, in package insurance, if both your home and your car are damaged, only one deductible will apply. Good deal, right?
Packaged insurance incurs paying one deductible only during a claim. Imagine how much you can save. Instead of paying for each deductible that both your home and car insurance policies have, you will just pay for one. It would be a big help for your losses.
Insurers want to keep their clients and have all their insurance needs within their business. They may offer packaging as part of promoting a better deal. The more packages you buy, the more they will see you as a client that deserves to be reciprocated.
Thus, they may give discounts or lower your premium if you would take advantage of packaging your auto and home insurance with them. After all, the profit they would gain from you is a big addition to their business.
You become an important client
Since you became loyal to your insurer for taking advantage of package insurance, your stay is very important to them. Hence, you become an important client than those who only have one policy. The perks of being an important client lie within your stand in the insurance company.
Even if you insure your home located in a quite risky area, for example, they would possibly keep you. Canceling your insurance may be a vague decision for them if you happen to have multiple coverages or policies with them. Besides, a business always takes care of what keeps them going.
Renewal dates are aligned
Packaged policies are wrapped in one envelope giving you a more simplified way of reviewing your policy renewal dates. Because they are aligned, it would be easier to go through these papers in renewing your policies.
It is more organized since it has less paperwork to deal with. This will secure you in achieving the same benefit that you had because the process would be easy. Having multiple policies to renew incur a longer process.
How about the disadvantages?
The disadvantage that lies within packaging your insurance policies is that you won’t have the chance to shop around for cheaper deals. Because you are focused on attaining the discount and perks from your insurer’s offer, you don’t give time looking for other companies. Hence, you are missing the best insurance providers that you might find out there.
You might miss something if you won’t have time to shop around. You’ll never know if you are still paying for the right amount unless you find time to compare. Your insurer might be offering a lower price for home insurance but may put a higher amount on auto insurance.
Having many types of coverage in one policy inflates the costs of your insurance. Let’s say that car insurance is priced at $250 a month. On the other hand, your homeowners’ insurance costs $300. That would amount to 550 dollars, minus any discount that you will receive. However, there may be instances that you could get lower rates than that if you chose to purchase one of your coverage in another company.
You have to think about it this way. Although you have to come up with a larger amount of money to pay your rates, remember that your policy is a package. It means that you have two coverages in one policy. Supposed that you received a 10% discount. You will have to pay 495 dollars. If you compare it with the supposedly original amount, then it’s obvious that you’ll pay less. Plus, the lack of hassle in settling many policies.
Since we are talking about bigger rates, many people might fail to come up with the right amount. This will result in a lapse in your policy. That means both your homeowners and car insurance will be affected. Imagine your two coverages would acquire lapses! That’s why it is recommended to pay attention to your payment schedules.
Almost all states’ laws prohibit driving around without a minimum amount of liability insurance. Having a lapse in your policy means that there will be a day that you are driving uninsured. You might be subjected to legal consequences and financial vulnerability.
After the lapse, you might be subjected to higher premiums. However, remember that your policy is a package. Compared to lapses in different policies, having a surcharge in only one will relatively be more bearable. Don’t worry! As long as you work hard and earn money, paying would be a breeze to you. Though the lapse affects both coverages, surely you won’t let that scenario happen, right?
Things to consider before you choose Package Insurance
It is a known fact that every insurer would want to have their clients purchase all their insurance needs with them. We, as consumers, must be however vigilant to avoid being unable to get what we deserve.
It would be a waste of time and money if in return we won’t get the right service and price. We may be able to get them from other insurance companies. Take a look at these things you should consider before deciding to sign up for packaged insurance.
Shop for lower premiums but have better service
There is a big advantage in shopping for the right insurance that will suit your liking as well as your needs. First and foremost, the price alone is a big factor to consider when shopping. Everybody wants to find lower premiums and get bigger savings. Of course, you need to consider the brand too, or the stability of that insurance company.
And what about the service? Especially if it concerns their way of dealing with your claims, you wouldn’t stay with a company that has poor services. Here are some tips to help you in looking for the most suitable insurer for you.
Attain quotes from different insurers.
By getting quotes, you will have the time to compare the insurance companies’ ability to serve you what you need. It is recommended to have at least three quotes to compare. You can search over the internet for the information that you need regarding their offers and services. You may call them for inquiries too.
Talk to an agent or independent agents that represent several companies. Pick one that can accommodate you and your questions. You may have a checklist of what to ask so it would be easy for your comparison shopping.
Look for the insurer’s status and performances.
Some people leave reviews about the service of a particular company where they are insured. You must be aware of this and go check about it. I mean this necessarily includes the insurer’s responses to the claims filed to them. After all, this is another way of presenting its established services to its clients to gain more customers. From there, you would have an idea of how they treat and serve their clients.
Seek recommendations or advice from others.
Keep in mind that not all insurance companies that offer cheaper premiums have the best services. You may hear out some recommendations from your relatives, acquaintances, and your friends. Their experiences from their insurers might help you decide what company to choose.
Find out what type of insurance coverage you really need
You must know the coverages that are essential to you. For example, you are paying for collision coverage for your car although that vehicle is too old. Given a chance that it collided against a tree and becomes totaled, have you thought of the deductible it might incur? It might not make any sense if, in the end, you will just receive a small amount. At this point, don’t you think it’s about time to omit collision coverage in your auto insurance policy?
Search for coverages that will help you the most when a possible mishap appears. This way, it would be very practical because you won’t be paying too much for the coverages that you don’t need.
Reanalyze from time to time
It’s good to have a lasting relationship with your insurer. However, being their loyal client should not hinder you from evaluating your current status with your provider. You may reconsider if you find out that you no longer achieve what you think is right for you. Also, if you are even paying more than what you should.
With all the products and services raising their prices, won’t you grab the opportunity to save on your insurance? Of course, you will! People are being practical nowadays and so are you. Don’t be left behind from the better options that other companies are offering. You may re-shop at least annually to discover these options.
With all the benefits of packaging auto and home insurance mentioned above, it all boils down to the most important benefit. That is a worry-free insurance policy. The comfort of having to pay one policy that covers all your needs is simply amazing. You won’t be worrying that your insurance might be canceled and it is easier to remember the payment date. Thus, lapses are avoided.
Do you want to take advantage of the benefits of the package policy? We, at Advantage Insurance Solutions, will help you achieve that by simply giving us a call today. As an independent insurance agency, we cater to all your insurance needs. We’ll give you the best and affordable quotes possible. Let us assist you with the most suitable insurance package for you!