Plenty of insurance ads talk about bundling policies to save money. But when you hear "bundling," do you know what that really means? While it sounds like rolling all your insurance into one policy, bundling actually means buying multiple insurance policies (auto, home, renter, boat) through the same company.
At PEMCO, you might hear us talk about "Home Plus Auto Discounts" or "Boat Plus Home or Auto Discounts" instead of bundling because, for most people, that's clearer. While we can provide all your coverage, you'll have separate, distinct policies that you can customize and still get a price break.
Why companies bundle and how it helps you
To encourage customers to buy more than one of their products, many insurers offer discounts for adding policies. From their perspective, it's good business because once they've invested the time to verify and process a customer's information for one policy, it's relatively quick and easy to add more. It also enables agents to take a holistic approach in protecting you and finding the right balance of coverage and price. That's extra peace of mind for you!
Many companies, including PEMCO, offer discounts not just on the policies you add but on your original policy, too.
One big myth about bundling is that you need to own a home to do it. The truth is, any two or more policies can be bundled. For example, a driver who also decides to buy their renter insurance through the same company will save significantly. At PEMCO, depending upon your individual circumstances, it could be like getting the renter policy for about one-third off the regular price.
More reasons than just money
While saving money is the No. 1 reason people buy all their insurance through one company, there are other good reasons, too:
Simplicity. When you have all your insurance through the same company, you only need to contact them once to make changes that apply to all your policies. Common examples are address changes, changes to bank account numbers for automated billing and adding new household members.
Deductible savings. A "deductible" is the amount you agree to pay on a claim out-of-pocket before your insurance kicks in (you choose the amount when you buy your policy). If you're unfortunate enough to be hit with two kinds of claims at once – say a fire starts in your garage, damaging both your home and your parked car – you'd pay only one deductible (the higher of the two if they're different) at PEMCO. If your home is with one company and your car with another, you'd pay separate deductibles for each company, meaning more money out-of-pocket.
One app. PEMCO's easy-to-use app lets you make changes to all your policies, pay bills, file claims, display your state insurance ID card and more. It's the only place you need to go for all things insurance – less clutter on your phone and only one insurance password to remember.
12-month policies. By moving all your insurance to PEMCO, you get the convenience of 12-month rather than six-month policies. There's less confusion about which policies renew when.
If PEMCO can't help you with a certain type of policy (something we don't sell like motorcycle, life, earthquake or flood insurance), PEMCO Agency can help you find the best-priced coverage through a quality company that does. It won't be considered part of your PEMCO bundle, but PEMCO Agency can save you the time and hassles of comparison shopping on your own – for free.
Ready to learn more? Check out "Insurance 101, Part 2: How to bundle your insurance."
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