The option of bundling your car insurance plan with other policies from the same insurance service provider is one of the easiest and most opportune ways to save money on insurance. Bundling up of insurance may include car insurance along with home insurance cover, life insurance cover, etc. Arrangements such as term plans and critical insurance policies, disability covers with regular health plans, and motor policies, and personal accident covers, have become commonplace.
Read on to see how your next insurance policy can significantly reduce your costs, burning less into your savings.
How is a Bundled Insurance Plan Different from a Package Insurance Plan?
| Basis | Bundled Insurance Plan | Package Insurance Plan |
|---|---|---|
| Meaning | This insurance involves purchasing multiple insurance policies from the same insurer. | This comprehensive car insurance involves the company offering a single policy to cover a variety of needs. |
| Benefits |
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| Drawbacks | The chance of customising the size of the cover is reduced. Structures of the bundle are predetermined. There might be numerous limitations on renewals and cancellations. Owning bundled products where the insurer does not have an effective system for integration of data and communication might land the insured in trouble. | There is reduced scope for customisation. |
Benefits of Bundling Your Car Insurance Plan that Help You Save More
- Lesser premiums: These bundled policies generally come at lower premium rates in order to make the purchase of the policy more attractive to the customers.
- Add multiple vehicles under one cover: The policyholder will be given a chance to add multiple vehicles under the same bundling policy offering a chance to secure the financial interests of the owner with ease.
- Hassle-free maintenance: There is simplified policy management coupled with insurance security in the case of bundling insurance.
- Additional discounts: The insurer will offer attractive discounts up to the tune of 20% - 25% for the benefit of the policyholder.
Why do Insurance Companies Provide Such Offers?
- To create a loyal and long-term user base: Bundling is an excellent strategy employed by car insurance companies since a customer who is open to the products of the company will likely opt-in for the same company for future policies. High customer satisfaction with bundling will give more opportunities to bundle products that aren’t generally sold together.
- It is expensive to maintain ledgers of new and short-term customers: Conventional wisdom explains that it is more expensive to get a new customer than it is to retain existing ones. It is also more costly to analyse new information and maintain ledgers for these customers.
- This is the best way to offer competitive prices: This will happen as the insured will be asked to pay only one common deductible for both the insurance products, lesser premiums, and discounts, which will attract more individuals to opt-in for that insurance company’s policy.
Conclusion
With convenience becoming a driving factor in most decision-making processes, bundling car insurance policies offers the insured persons an option of saving not just money, but also precious time. It is a win-win situation where the customer benefits and the insurers too, with steady revenue streams and growing customer loyalty.
