Disadvantages of Bundling Policies
Bundling car insurance with other policies (usually homeowners insurance) is considered the best way to save money. In many cases it is the best. But you should not blindly combine policies. There are many things to take into consideration before making the bold decision. There are some disadvantages, in some cases. Find out more and get auto insurance cheap quotes from our website.
One big disadvantage is when you have to buy different add-ons in order to be eligible for bundling. How much money will you save if you have to pay more for different extras? It’s not uncommon for insurance companies to offer discounts to those who bundle, but to require add-ons in order to recover their costs. Examples of these add-ons may include life, arts, jewelry or other valuables coverage, rental car reimbursement or even roadside assistance. Before you attempt to bundle your insurance policies, make sure that there are no restrictions in place or additional purchases required to receive a discount.
You are less inclined to compare prices periodically when you have multiple assets secured. This false sense of security is a major drawback. It makes good financial sense to shop around at least once a year to ensure that you are getting the best price on your insurance policies, no matter if they stand alone or are bundled with one company. While you may signed for the best market deal initially, there’s always the chance that another company will be able to provide a better discount now. If you do choose to bundle, don’t neglect to shop around when the policies are about to expire.
In order not to fall victim to these 2 tactics, you should do a fair amount of research before bundling. Luckily, today you can also use the internet to check for prices. Although insurance agents tend to be very helpful, keep in mind is that their agenda includes selling policies for their companies.
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