Trying to save money on your insurance?
The best way to lower your insurance costs is by placing both your home & auto policies with the same insurance company. Insurance companies offer “multi-line” discounts of up to 20% to attract the customers who will place more than one policy with them. These discounts allow the insurance company to charge significantly less for your home & auto together than compared to insuring the policies separately at more than one company.
Chances are, when you bought your first auto policy, you used the same insurance company as your parents or siblings. You may have since changed it to another insurance company through a savings offer, but have never made a conscious decision to choose one company over another.
The same scenario is common among homeowners. When buying a home, the first time buyer often gets insurance through whichever company the bank or broker recommends, or uses the same as their parents or friends. But rates are different for different kinds of homes. Since the insurance is often paid through the mortgage after the first year, the new homeowner never shops for better insurance options after the initial purchase. The insurance market is so dynamic, it's really valuable to have your agent shop your program periodically. Id if they aren't bundling the home and the auto, you may be leaving money on the table.
The customer has separate insurance policies, each with a different company, resulting in three separate insurance bills each month. This is a sure fire way to pay the most for insurance.
Today insurance companies use multi-tiered rating algorithms with all kinds of separate charges and credits for particular variables to achieve unique rates for every customer. (For more on the math behind insurance company rating, see our separate blog).
But for most people the biggest single discount is the "account discount" when the home (or apartment insurance) is bundled with auto insurance. Credits apply both ways, meaning these credits lower the cost of BOTH the auto insurance and the homeowners insurance.
One exception to this general rule of thumb is for homes near the coast. Coastal home insurance carries all kinds of unique challenges (which we are quite familiar with and capable of addressing), but these variables may be the only time when home-plus-auto discounts don't trump everything else.
Contact us here at Gordon Insurance, or talk to your own local independent agent today to have your home, auto, and life insurance quoted together with several companies. This will give you the chance to review your options, which will most likely be significantly lower in cost. Also, if a life altering event takes place and you need to use the insurance, the claim process will be simplified with only one insurance company in the mix.
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