Insurance Consumers Save Money by Bundling

17 Aug Insurance Consumers Save Money by Bundling

When looking for car insurance Van Nuys has a number of good options. There are big, legacy insurers that provide people with a whole smattering of coverage options, from basic coverage to the Cadillac of insurance policies. Some consumers are looking beyond those large insurance companies to smaller, local insurance providers. Especially in California, it’s possible to work with an insurance company that focuses more on client service and unique product offerings to save people money. By working with smaller insurance providers, many people are able to bundle their coverage and get great discounts that might not have been otherwise available.

Coverage bundling is simple as a concept. It involves taking out policies for multiple different items with the same insurance company. A person with a car and a boat might take out insurance on both with one carrier. It works well for the consumer because he or she can just have a single payment date. It works well for the insurance provider because they have to dedicate less money to every client in administration. They also have a lower customer acquisition cost when they get two customers in a single swoop. Those savings are passed on to consumers through a bundled package that includes a steep discount.

Bundling helps to make life easier by allowing the consumer to develop an actual relationship with his or her insurance provider. This is a rare thing in the insurance business today. All too often, consumers have a soulless, faceless insurance entity providing them with a policy that may or may not pay out. When something bad happens, they do not have an advocate at their side to provide help. Rather, they are in an adversarial situation with their insurance provider. Nothing good can come of a situation like this. The better scenario is having an insurance company that knows the customer personally. This is easier to accomplish for smaller insurers in local California markets.

Changes to the insurance industry are the result of a more competitive marketplace. No longer do the major insurance carriers simply own and dominate their target market. While many people still get insurance from those legacy carriers, some are figuring out that a better coverage situation and lower rates are available to them when they choose to switch to a smaller carrier that has a more personal, local focus.

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