Insurance companies offer a host of ways to reduce the premiums you pay for auto, life, home, and health insurance. If you have a clean driving record, you might qualify for a discount on your auto insurance rates. If you install a security system to protect your single-family home, you might have to pay less for your homeowners insurance. And if you don’t smoke, you’ll certainly pay a lot less for life insurance.

One of the most popular ways to qualify for a discount is to bundle different insurance policies together — say, your homeowners and auto policies — from the same insurer. Insurers will give you a discount as a reward for buying more than one policy from them.

Bundling is popular. A 2016 story by InsuranceQuotes.com cited a U.S. National Auto Insurance study by J.D. Power and Associates saying that 58% of policyholders bundle their homeowners and auto insurance policies. InsuranceQuotes.com also reported that bundling insurance can save policyholders about 10% off their annual rates, if they land the best bundling deals available.

But, there is a catch here, and sometimes taking out life, auto, and homeowners policies with different companies makes the most sense. Even though bundling might sound like the obvious choice for consumers hoping to save money on insurance coverage, there are a few times when bundling actually doesn’t result in the biggest financial savings.

You Didn’t Shop Around

The best way to nab the lowest rates on insurance is to take the time to shop around with different companies. This is far easier today, with insurers providing online quotes to potential customers.

It can be tempting to skip the shopping phase if, for…