Looking to save money on your insurance premiums every month? You should consider taking advantage of multi-line discounts.
Many insurance carriers offer significant discounts for customers who place multiple types of insurance with the same company. In some instances, annual savings may amount to more than $300, according to a new survey by Quadrant Information Services.
The insurance information firm recently took a state-by-state look at the savings consumers could realize by bringing multiple personal insurance lines together under the same roof – a practice known as “bundling.”
Savings varied by state, as well as the type of insurance policies being bundled together, but the results were clear and unambiguous: On average, consumers in all states were able to save money by bundling.
Bundling homeowner’s and auto insurance
The best results came from bundling auto and homeowner’s insurance with the same provider. On average, this saved consumers $322 nationwide, for a total savings of 16% of annual premiums for these lines.
Bundling auto and condo insurance
Bundling auto and condo insurance likewise lowered premium costs – by an average of 11.6% nationwide, the study found.
Bundling renter’s and auto insurance
It’s not just homeowners who can generate savings through bundling. Renters also realized a nationwide average savings of 8% when they combined their renter’s and auto policies with the same carrier.
Why does bundling work for carriers?
Insurance carriers offer these discounts for a variety of reasons. It’s expensive for insurers to attract a new customer, and carriers are constantly trying to compete for business.
But adding an insurance line to an existing customer is much less costly for carriers than the marketing and sales cost of bringing on a new client from scratch – so it’s possible for them to pass part of those savings on to the customer.
Insurance carriers also know that the more types of lines a given customer has with a carrier, the longer they stay with them.
Bundling multiple insurance policies with the same carrier also simplifies your financial life, say experts. Not only can you save money, but you also have fewer bills every month, and fewer checks to write or electronic drafts to keep track of.
How to realize your savings
Call us and ask if any of your insurers offer multi-line discounts for bundling. We can provide estimates for placing your other types of insurance policies with each of them