Bundled vs. Unbundled Insurance: Which is right for you?

A couple stares intently at their laptop to determine if bundling their insurance is right for them

Bundling—often known as a multi-policy discount—can often save you money by going through the same carrier for both home insurance and auto insurance. Here are a few things to consider when deciding if insurance bundles are right for you.

Benefits of Bundling Your Insurance:

Some of the benefits that come from bundling your home and auto insurance include:

  • Saving money: Home and auto insurance companies often offer discounts for bundling multiple policies and some insurers may be able to provide a single deductible for both policies. In fact, individuals who bundle with SelectQuote save, on average, more than $750.*
  • Saves time: By going through one carrier, you have a one-stop-shop for all of your policies. Bundling makes managing your home and auto insurance easier, reduces the paperwork, and gets rid of the inconvenience of communicating with multiple insurance companies for your different policies.
  • Variety of bundles: Insurance companies often offer more complex bundles to encourage the combining of multiple policies beyond home and auto insurance. This not only makes it easier to obtain more coverage from that carrier, but it makes it possible to insure your car, home, rental property, boat and RV all under one policy.

How to Decide if Bundling Insurance is Right for You

When deciding if bundling is right for you, here are a few tips to help you decide:

  • Evaluate each policy: It’s crucial to compare the coverage and values of each policy whether it’s standalone or bundled. Taking the time to compare companies, coverages and prices can help you find the best deal for both your needs and budget.
  • Consider deductibles and premiums: Bundling policies with one insurance company can build loyalty and trust, but you’ll want to continue shopping around to ensure you’re getting the best price available to you, whether you’re deciding on individual policies or a bundle.
  • Ensure the carrier covers both policies: Sometimes insurance companies offer bundles that pair your policies with an affiliate company, so although it may give you a discount, it can reduce the convenience of having both of your policies under one company.

What does unbundling mean?

As opposed to bundling, which is the purchasing of multiple policies through a single carrier, unbundling is the purchasing of policies through multiple carriers. Oftentimes, unbundling could be beneficial if you’re able to find better rates and/or coverage from different carriers on the different types of policies you’re looking for. While many insurance companies offer bundled discounts, that doesn’t always mean it is going to be in your best interest.

When is it a good idea to unbundle your insurance policies?

While the immediate savings from bundling your home and auto insurance can be ideal, you’ll want to ensure you’re still receiving quality coverage at a fair price over time. Prices tend to increase at policy renewal, so shopping around annually is a good way to make sure you’re still getting the most out of your bundle. If you find that you’re not, unbundling is something you can take into consideration.

Bundling Means More Than Just Your Home & Auto Insurance

Bundling isn’t limited to just your auto and home insurance policies—there are many additional coverages that you may be able to include in your bundle. Some additional coverage to consider includes:

  • Motorcycle
  • ATV
  • RV
  • Boat
  • Flood
  • Earthquake
  • Renters
  • Umbrella

Bundle Your Insurance Policies Today with SelectQuote

If you’re wondering if bundling is right for you, we can help you look into the benefits of your existing policies and what all you hope to cover, and decide if there are opportunities to bundle and save. Let us help you find your best insurance options in just minutes.

*Average customer savings based on an average of new SelectQuote Auto & Home Insurance policyholders between 1/9/2020-1/10/2021. Individual savings may vary, and are not guaranteed. Coverages and discounts subject to state availability and individual eligibility.

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