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 follows:  “to offer together with a related product or service at a package price”.  Pretty straightforward for sure and the concept seems to be nicely embraced by the insurance industry. Essentially, property and casualty insurance companies offer three basic types of coverage: homeowner’s, 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:

    • Advantages

-Discounted price

-Convenience…less decision making and one stop shopping

    • Disadvantages

-Limited choices….no flexibility 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 homeowner’s insurance through Company A (annual premium of $1,497) and their auto policy through Company B (annual premium $2,479) for a combined 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. They were very wise in how they approached this. They contacted both Companies A & B and to no surprise, each 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 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 the suggestion and he later contacted Company A and was pleased to find out that he was able to save an additional $300 in annual premium.