Will a home and auto insurance company save me money?
By placing both home and auto insurance policies with the same company, a person can usually save about 15 percent on each policy.
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UPDATED: Nov 2, 2021
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- By placing both of the policies with the same company, a person can usually save about 15 percent on each policy
- Among home owner’s policies, a consumer can choose his or her deductible, as well as the amount of coverage and types of coverage that he or she wants
- Some consumers have found that they can save just as much if not more by buying policies from separate companies
- Make sure to shop around to make sure you aren’t overpaying for the coverage you need
For decades, the standard advice to consumers who want to save on their auto insurance costs has been to combine their auto and home policies. By placing both of the policies with the same company, a person can usually save about 15 percent on each policy.
Doing this isn’t always the best deal for a consumer, but it could be based on a number of factors for you and your company.
Enter your ZIP code into our FREE auto insurance comparison tool to find the best rates available for you now.
Why are these discounts offered?
Decades ago, reputable auto insurance companies used multiple policy discounts as a way to entice customers to bring more business to their company.
Customers of auto insurance companies were enticed to take out a policy with the same insurance company as soon as they purchased a house.
By offering them a discount on both of their policies, an insurance company was able to double the number of insurance policies it sold to a person or family.
In addition, the discount helped to ensure that these individuals or families would remain customers of the insurance company for a long time.
For many years, the multiple policy discount was one of very few discounts that major insurance companies offered. Today, however, there is a large variety of discounts available in the insurance market.
In addition, there is a wide variety of pricing options available for both auto and home owner’s insurance policies. In short, combining insurance policies may not be as good of a deal as it used to be for many consumers.
Review home and auto insurance companies to find out for sure if this is the best option for you.
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New Options Available on the Market
A consumer in the market for an auto and/or home owner’s insurance policy has a lot more options than he or she has ever had before. Among homeowner’s policies, a consumer can choose his or her deductible, as well as the amount of coverage and types of coverage that he or she wants.
The same is true for auto insurance policies, but consumers can also choose from several different levels of insurance.
Because of these choices, there are a lot of opportunities for consumers to save money outside of multiple policy discounts.
For example, a person who chooses a very basic auto insurance policy from a discount auto insurance provider can potentially save thousands of dollars a year over a full coverage policy from a traditional auto insurance provider.
If this consumer instead decided to buy a basic policy from the traditional company, they would probably only save a few dollars since multiple policy discounts are only able to take a small percentage off the total cost of the policy.
Gaining More Insurance Flexibility
Consumers have also discovered that not being tethered to an insurance company gives them a lot more flexibility. In some cases, insurance companies give their best discounts to their new customers in order to attract new business.
By grouping policies together, a consumer is much less likely to shop around for a new policy. Insurance companies are aware of this, and therefore do not provide their best deals to their longtime customers.
A consumer who separates his or her policies, however, will have the ability to shop for each policy on its own. For example, many consumers will find a home owner’s policy that they are happy with and choose to stay with the same company for the entire length of time that they own their house.
In the event that a person sees their rates rise significantly (as is often the case after a natural disaster), he or she may need to shop for a new home owner’s policy. Odds are, however, that he or she will not want to change their auto insurance policy.
Having separate policies will make the shopping process a lot easier.
Is getting a discount worth it?
While the multiple policy discounts offered by many insurance companies can give a consumer big savings on their insurance costs, many consumers have found that they can save just as much if not more by buying policies from separate companies.
This gives a consumer more choices in their quest for insurance since he or she can look into purchasing insurance from smaller companies that may specialize in providing policies that meet a consumer’s exact needs.
To see auto insurance quotes that can meet your needs, enter your ZIP code into our FREE comparison tool.
By buying just the right level and amount of insurance, a consumer can save hundreds or thousands of dollars a year. Combining auto insurance and home insurance policies together is certainly not the only way to get affordable rates for either.