Are your car and home insurance with different insurance companies? If so, you could be making a costly mistake. If you are like many Americans, you may not have reviewed your insurance policies since purchasing them. You faithfully pay your premiums, all the while hoping you are not paying too much for the coverage you need. However, if you are paying more than one company, you could be shelling out more cash than necessary each month. Continue reading to learn how you can unlock savings by bundling your car and home insurance into a single package.
The Case for Packaged Car and Home Insurance
The team at Reis Insurance Agency has been serving customers in the River Falls, Wisconsin area for more than 40 years. Decades of experience have taught us that there is no such thing as one-size-fits-all insurance. However, we also know that a customized insurance package that encompasses multiple types of coverage can provide more comprehensive protection and lower rates than individual insurance policies purchased from the same provider or individually.
There are two reasons that package insurance rates tend to be lower than individual policies. The first is because insurance companies offer discounts to people who purchase more than one type of insurance from the same carrier. Similar to a loyalty discount, the more business you bring to a company, the lower your rates are likely to be.
The second reason package insurance rates are typically more affordable due to the rigorous underwriting and evaluation process. When all assets are covered under the same policy, insurance companies investigate customers to gain greater insight into overall risk exposure. Those who meet the required standards, such as higher credit scores, are often rewarded with better coverage at lower rates. In some cases, the liability coverage limits exceed that which might be available from an independent insurance policy.
Package insurance can be a streamlined and affordable way to shield and protect a large amount of assets from losses or liability. Package insurance can provide peace of mind when traveling abroad, help when your identity is stolen, increase liability on your umbrella coverage, and much more. From homes and cars to investment properties and recreational vehicles, nearly any asset can be insured under a package policy.
When Package Insurance isn’t Right for You
Package insurance is not right for everyone. Perhaps you wish to keep the coverage on your vehicles and home separate, or maybe you simply do not qualify for a package policy. Whatever the reason, it does not mean you have to miss out on savings. In fact, you can unlock tremendous savings on car and home insurance simply by purchasing both types of coverage from the same carrier.
Nearly all insurance companies offer a discount for customers who bundle more than one line of coverage with the same insurer. The policies are independent of each other, yet the premiums on each may be reduced by as much as 5 to 15 percent. As noted in Investopedia, the discount is an attempt to capture all of the insurance business available from your household. However, the insurer is not the only one that benefits. As the policy-holder, purchasing more than one type of coverage from the same company can mean fewer bills to pay and less time sorting through policies.