Comparing Bundling Savings to Per-Mile Insurance Savings

All you keep hearing is bundle, bundle, bundle. Most companies offer bundling discounts, but you may not always save on insurance by doing so. We suggest doing your own research and math to really find out if you will save by bundling all of your policies together. Sometimes it works out that you will be saving, but other times you might discover that you can find bigger cost savings by keeping all your insurance policies separate.

Comparing Bundling Savings to Per-Mile Insurance Savings

To bundle insurance is to take all of your insurance policies and house them under one roof by using one insurance company, which could potentially help reduce the overall cost of each policy when taken together. Bundling is the idea that you can buy two or more types of insurance coverages from one insurance company.

Pros of Bundling:

One major benefit of bundling your insurance policies is that you will no longer have to pay separate bills for each of your policies with different companies. Instead, you will just need to pay one bill to one insurance company. Also, insurance companies will sometimes offer multi-line discounts, which means you can get a discount to your rates because you are choosing to have more than one type of policy through that company.

Cons of Bundling:

You are probably thinking, well why wouldn’t I bundle my insurance policies then? The major reason is that you could be missing out on discounts if you don’t shop around and compare savings from other companies. There are a wide variety of discounts across different states and companies that you could be missing out on if you choose to bundle rather than keeping your policies separate. Ultimately your savings could be greater than the savings you may get with bundling. Insurance companies like bundling because customers are more likely to stay with the same provider for a longer amount of time compared to those who don’t bundle. So in the long run, bundling is better for the insurance company than it is for you.

When it doesn’t make sense to bundle:

  • When you are doing it just for the discount. Beware, you might have just signed up for a new policy that was way less expensive, but with less coverage. When it comes time to file a claim you will realize you don’t actually have adequate coverage. Really consider the coverages and the rates you currently have before just grabbing the discount carrot dangling in front of you. A good rule of thumb: the new insurance policy coverages you are looking to bundle should be equal or better to the coverage you are canceling.
  • When it prevents you from shopping around. Don’t become complacent with your current policy, which could lead you to overlook a better rate or coverage.
  • When your life changes. Maybe at one point in your life bundling was a great option for you, but now you have a family, drive different cars, and it doesn’t meet your needs anymore. Don’t continue with a policy, just because you bundled, especially if it no longer fits your lifestyle.
  • When you are a low mileage driver. If you are driving less than 10,000 – 12,000 miles per year you could be taking advantage of per-mile insurance. Metromile policies are billed monthly on a per-mile basis; which means you are charged a low monthly rate based on the miles you drive. With per-mile insurance, there is no need to bundle your policy, since you will be saving money already.Learn more about per-mile insurance here.

Don’t get caught up in the hype of bundling all your insurance policies. Remember to do your research to see what options and policies work best for you. If bundling is still breaking your bank, get a free quote from Metromile now to see your savings.