Unbundled

What Does Unbundled Mean?

In the context of insurance, “unbundled” refers to insurance products that are not purchased from a single carrier or insurance company. Unlike bundled insurance, which involves purchasing multiple types of insurance from one insurer, unbundled insurance involves obtaining coverage from different insurers.

Insuranceopedia Explains Unbundled

When purchasing insurance, many people choose to “bundle” various policies, such as home and auto insurance, by buying them from a single insurance company. This approach allows them to benefit from premium discounts offered by insurers for bundled policies. In fact, the majority of customers bundle at least two policies.

Additionally, some insurers offer other advantages, such as allowing clients to pay a single deductible for damage to property covered by multiple policies. For example, if a flood damages both a policyholder’s home and car, the insurer may require payment of only the highest deductible and waive the others. Bundling policies also simplifies shopping and management, as the policyholder only needs to deal with one company.

However, considering unbundled insurance products provides the opportunity to shop around for the lowest premiums and best coverage options. It is important to compare both bundled and unbundled prices before making a decision.