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Multiline Insurance: What It Means, How It Works, and Advantages

By

澳洲幸运5官方开奖结果体彩网:Caroline Banton

Updated August 31, 2023

Reviewed by

Andy Smith

Fact checked by

Suzanne Kvilhaug

What Is Multiline Insurance?

A multiline insurance contract is a type of insurance policy that bundles different exposures to risk and covers them under a꧑ single agreement. These policies provide additional revenue for the providers and offer increased convenience and premium discounts for policyholders.

Many large insurers offer policies that can be bundled. Personal insurance policies include automobile, homeowner, long-term care, life, and health insurance coverage. Commercial insurance for businesses covers rꦛisks such as loss of life, as well as physical and intellectual property theft.

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Key Takeaways

A multiline insurance policy bundles different areas of coverage.
A bundled policy may include car, home, and life insurance coverage.
Customers commonly obtain discounts with bundled policies.

Benefits for the Insured

A lower premium for bundling coverages like home and auto insurance
Aggregate deductibles to cover several risk types
One insurer is a one-stop shop for businesses and individuals
Customers benefit from providing the insurer with a complete picture of the risks they represent
One insurer means dealing with fewer companies and likely a better customer service experience

Important

Individual who bundle auto and home insurance save an average of 15% annually.

Benefits for the Provider

Maximized company offerings, improved client retention, and decreased competition
Reduced exposure by spreading the risk across various factors to minimize the financial burden if catastrophic events occur
Single billing and policy administration

What Is a Disadvantage of Multiline or Bundled Policies?

Not all insurance companies specialize in all types of insurance coverage. If a company excels in automobile coverage, homeowners' insurance may represent its secondary product line. In such cases, a bundled policyholder may have a better experience claiming after a car accident than after reporting a home burglary.

Can Customers Use One Insurance Agent or Broker to Obtain a Bundled Policy?

Customers may be able to manage policies online at the same place or through the same agent. Depending on the co💖mpany, they 𒈔also may be able to align renewal periods and effective dates for all policies.

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How Many Policies Can Be Bundled?

There may be a limit on the number of policies customers can bundle with one company, like qualifying for a bundling discount on the three most expensive coverages.

The Bottom Line

A multiline or bundled insuℱrance policy provides customers with different areas of coverage. A bundled policy may include car, home, and life insurance coverage obtained through one agent at one company. Bundled policies ensure providers retain customers by providing a full range of customers and commonly offer customers discounts for bundling.

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