Have you ever considered bundling your insurance together? After all, the premise makes sense, and you’ll have to shell out coverage for numerous policies, so why not have them all sorted by the same provider? However, as with any other financial decision, coupling your insurance should not be a choice you take lightly.

The advantages

On average, policyholders can save as much as 25% on premiums when they lump their insurance together. Typically, this is what draws people to bundling their policies. There’s also the added convenience of only having to download one app and learning how to use just one system to track and make use of their coverage.

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You may have heard that policyholders who make too many insurance claims may be dropped by their provider. However, you’ll be pleased to hear that when you take out more than one of their services, insurance companies are way less likely to do that.

The disadvantages

Sometimes policyholders are dazzled by the discount and fail to compare prices elsewhere. Don’t fall into that trap; be sure to do your homework and go with the company that can save you the most money.

More worryingly, insurance companies have a nasty habit of offering fabulous savings on premiums when you first sign up, and then gradually raising their rates as you get comfortable with them over time.

Our advice

As we’ve just said, you need to shop around — but in addition to that, you need to know precisely what the policy entails so you can get a like for like comparison.

Once you eventually settle on an insurance provider, we encourage you to reevaluate your circumstances every so often. Do a little price comparison every couple of years or so, and see whether you can save yourself money by purchasing insurance elsewhere. Explore other new and more modern car insurance options such as usage-based insurance. When you do this, use resources outside of price comparison websites; that way you’re more likely to get the full picture of what’s available to you.