Insurance Bundling; the Multi-Vehicle or Multi-Policy Discount
Flo, the Progressive Insurance girl, has a cute “bundling” commercial getting some play- time now; one in which Flo touts the company’s ability to bundle policies together to save customers money. The commercial is cute, but the truth is that insurance companies have been offering this sort of thing for years. It is called the multi-vehicle or the multi-policy discount. You will hear all of the insurance companies refer to this in their advertising, from Allstate to Liberty Mutual to State Farm; just about every one of the insurers offer this type of discount.
These discounts are exactly what they sound like they are; if a customer has more than one vehicle on a single policy, having a multi-vehicle discount means that the entire policy will cost less than it would to insure each vehicle under a separate policy. The same thing goes for a multi-policy discount; if a customer has more than one policy with the same company (such as auto and homeowners) there is a discount on all.
So if you need to insure more than one vehicle or purchase more than one type of insurance policy, insuring them all through the same company should save you money over all.
Not only are you being smart to do this, but the insurance company is being smart too. This is because when one customer buys insurance for more than one vehicle or more than one insurance need, the insurance company is getting more business than they would for a single item. It also means that this customer will most likely be more loyal to their insurance company; it would be more work for that customer to change insurance companies, especially if one of the bundled policies is life insurance.
Offering multi-vehicle or multi-policy discounts are a great way for an insurance company to improve customer retention. Improved customer retention saves an insurance company money. It costs money to find a potential new customer and then approve and process a new policy.
Bundling, multi-vehicle or multi-policy discounts, or whatever you want to call it; they are all a great way to save money, both for the policy holder and the insurance company. It is simply a win-win arrangement.This article is approved for informational purposes and is not intended to take the place of competent local legal counsel.