After you purchase a home, one of the first tasks on your to-do list is to find the right home insurance. For many of us, owning a home will be the largest financial investment we ever make. It likely took years of saving and planning before you finally decided to take the leap and buy your dream house. So, you will want to make sure that the property is protected with the right coverage. If you choose to purchase a policy with the same company that provided your auto or life insurance, you’ll likely receive a bundle home insurance discount.
The discount will vary, depending upon what is included in your multi-lines policy and a variety of other factors pertaining to your location and personal history. However, you can save up to 20 percent on a policy that bundles home and auto insurance. If you add life insurance to the policy, you could save even more—sometimes up to 25 percent.
Every month, you may have five, six, or even ten bills arrive in the mail. The water and heating bills, electricity, internet, mortgage—the list goes on and on. Wouldn’t it be nice to have your insurance combined into a single bill? Instead of receiving separate payment notices from different insurers for your car, life insurance, RV, motorcycle, and home, you could work with your independent insurance agent to create a multi-policy insurance package.
It’s as easy as calling your agent and speaking with them about your insurance needs. If you already have an auto policy, and need to purchase insurance for your new home, then your agent can work with you to create a multi-policy package. As a thank you for bringing them new business, they will reward you with a bundling discount. Not only will your premium be reduced for your vehicles, but your house as well.
Some people may argue that by comparing single line policies for auto, home and life insurance, you could find better deals. For example, one auto insurer may offer monthly premiums of $150, while another offers $140. However, when also considering the costs to separately insure your home and life, a multi-lines policy works out in your favor. According to Investopedia:
“By combining you policies under one roof, the companies benefit from economies of scale and can justify more discounts by getting additional total premiums. In other words, they have more money to work with and therefore can justify charging you less.”
Another reason why insurers reward customers who bundle their policies is because they are less likely to switch carriers. People who hold multiple insurance policies with the same company prefer to choose an insurer and stick with them. The company anticipates having your business for many years to come, and rewards your loyalty.
Bundling Makes Everything Easier
Aside from reducing the number of bills you receive in the mail each month, and lowering your insurance premium rates, bundling your policies with the same insurer can make your life much easier if you experience a loss.
Often, insurers will charge you a single deductible rate for your home and auto insurance if you have a multi-lines policy. Let’s say that someone robs your home. In addition to stealing expensive electronics and jewelry, they also go into the garage and break your car window in an attempt to take items out of your vehicle.
If you had two separate policies, one for your home and one for your auto, you would have to pay the deductible for each before receiving monetary assistance for your claim. You may end up paying $1,000 for your home insurance deductible and another $500 for your car. If your policies were bundled, you’d only have to pay a single deductible, and this may be less than the two separate charges.
Speak to An Agent
Independent insurance agents have the advantage of being able to sell a variety of policies from different insurance companies. Therefore, they are able to work with you to find the right multi-lines policy that works for your life. Since they are not obligated to sell policies from a single insurance company, they can help you shop around for the best deal. Each insurer will offer different bundling discounts, and your independent agent will help you find the right price and right insurance to best fit your needs.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.