What Does Unbundled Mean?
Unbundled, in the context of insurance, is a term used to describe insurance products not purchased from a single carrier or insurance company. As opposed to bundled insurance, which refers to multiple types of insurance purchased from a single insurer, unbundled describes insurance purchased from various insurers.
Insuranceopedia Explains Unbundled
When buying insurance, many decide to "bundle" various policies, such as home and auto insurance. In other words, they buy them all from one insurance company. In doing so, they can benefit from the premium discounts insurers offer to bundled policies. In fact, a majority of customers do so with at least two policies.
Moreover, some insurers may offer other benefits, such as allowing clients to pay a single deductible for damage to property insured by multiple policies. For example, a flood damages a policyholder's home and car. The insurer might only require payment of the highest deductible and waive the other one. Furthermore, bundling policies makes it easier to shop and manage insurance as the policyholder need only deal with one company.
Nevertheless, considering unbundled insurance products allows one to shop around for the lowest premiums and best coverage options available. It is important to compare bundled and unbundled prices before deciding to go with one or the other.