Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

"What Is Bundling?"


Webster defines it as the following:  “to offer together with a related product or service at a package price”.  This is a pretty straightforward concept that the insurance industry embraces. Essentially, property and casualty insurance companies offer three basic types of coverage: homeowners, auto and umbrella. If you add a second policy to your coverage, you will be entitled to a discount that will spread across both of your policies.


Things to consider:



- Discounted price

- Convenience…less decision making and one stop shopping


- Limited choices….no flexibility and/or must accept what is being offered

- Just because a “discount” is given, does not mean it is a good value.



Ted and Amy had their homeowners insurance through Company A (annual premium of $1,497) and their auto policy through Company B (annual premium $2,479) for a combined premium total of $3,975. A neighbor mentioned to them that he received a discount by having both policies issued by the same company, so Ted and Amy investigated and were very wise in their approach. They contacted both Companies A & B and to no surprise, each company was willing to offer a bundling discount if they placed the second policy through them.  After an apples-to-apples comparison of coverage, and incorporating the discount, Company A offered a bundled price of $3,275, while Company B offered a bundled price of $3,500. Ted and Amy did two things: (1) they saved $700 a year by going through Company A and (2) they thanked their neighbor for his money-saving suggestion. It was no surprise when their neighbor later contacted Company A and was pleased to find out that he was also able to save an additional $300 in annual premium.