We’ve all seen the commercials talking about how we should bundle our home and auto insurance to get a better price. Flo from Progressive, Jake from State Farm, even Limu the Emu and Doug from Liberty Mutual have gotten in on the action. Even though these commercials are pretty annoying and overdone, I have to agree with them… for the most part. So today I don’t want to look at more boring reasons why you should bundle your home and auto together, but rather the instances when you should be an insurance rebel and move your policies to different carriers. So, let’s look at three reasons to not bundle your insurance.
If you can get a better price
You shouldn’t bundle your policies if you can get a better price separating them. Yes, I know this seems obvious, but most insurance agents are lazy and won’t take the time to check to see if ‘unbundling’ your policies will save you money. So, make sure you press your agent to check to see if there are combinations that work together better than just going with one carrier.
If you have a unique risk
You also shouldn’t bundle your policies if you have a unique risk your auto or home carrier cannot properly insure. Many home insurers don’t have the capacity to pick up the liability associated with unique activities like having a pool, running a business out of your home, or doing hobby farming in your backyard. Some auto insurers can’t adequately insure antique cars, sports cars, or help insure against the liability of driving a company vehicle. If you run into one of these scenarios, consider going to a specialty market for that individual policy. You’d be surprised to learn how many specialty programs there are. There has even been an insurance policy that paid a claim for alien abduction! So, if you have something unique, make sure to talk to your agent about it to ensure it’s properly protected with the right policy, not just the convenient one.
If you have a high number of claims
You shouldn’t bundle your policies if you have had a high number of claims. Even if the company that writes one of your policies can write the other doesn’t mean you should automatically go with them to get the bundle discount. Let’s say you’ve had several water claims on your home and are insured with the same company that insures your auto. There is a chance they could restrict water coverage on your policy, but still write it. It wouldn’t make sense to stay with them simply because you’re getting a discount but are severely limiting your coverage. So, if you’ve had a few claims, make sure you look at all of your options to identify which carrier is best for you.
So, remember, just because everyone is telling you to bundle your home and auto doesn’t mean it’s the best option for you. Talk to us to see what combination the winning strategy for your risk management could be.