If you own a home and car, you can bundle those two policies together and get a nice discount. Lets look at the states with the cheapest bundled auto and home insurance and go over some tips on how to save more of your money.
If you think you have used up all the possible savings for your automobile policy, think again. There is at least one additional thing you can do to save on your policy. Some people call it a multi-policy discount and others bundling, but if you want to lower your overall cost of coverage, then combine your vehicle and homeowners policies together. This can save you more than 20% and make your life a little more efficient with more convenient combined billing.
Why do Companies give Bundled Deals?
The answer to this question is quite simple: it makes them money. Getting new customers is an expensive proposition for insurers and being able to efficiently add a new line to an existing policy adds revenue and profitability. Because the insurer is now realizing two streams of revenue from one customer, they are able to pass along more savings and make the deal attractive to the client. Also, people that get a good rate on bundling are less likely to shop around for lower priced coverage as much and tend to stay with the same carrier longer.
Insurers consider homeowners more responsible and less likely to engage in risky behavior and thus file fewer claims. Another key reason why companies offer these special deals is people who are covered with two types of insurance are very likely to go with the same insurer for a third. For example, if someone has vehicle and house coverage with an insurer, they are more likely to get life insurance with that same insurer. Sales agents also know that and find customers who have existing bundled products much more easy to sell to.
Rates for Bundled Polices vary by State
While almost every company provides for this discounted auto plus home package, the savings vary a lot by geographical region. Quadrant recently released some interesting stats that show packaged deals by state. The overall national average for a multi car-auto policy is about 16%. This can add up to $100s per year, so if you’re a homeowner, it’s definitely worth it to at least get a quote.
According to quadrant, there are four states that have the highest discounts for combined automobile and homeowner ins. These are Arkansas, Georgia, Oklahoma and Kansas, each with an average savings of 22%. Nebraska is close behind with a 21% rate cut. To illustrate the potential cost savings, if you have two separate vehicle/home policies that cost you a total of $2,000 annually, then in those states you would be looking at reducing your bill by $440. All you have to do is spend a few minutes comparing rates and then make the switch.
The states with the lowest price breaks are Florida at 8%, then W Virginia, New York and Hawaii at 11%. This will still save you about $200 yearly if you bundle here, so even in these states it makes sense. If you are insuring a condo then Illinois is the place to be with a 16% auto/condo discount, with Missouri and Wisconsin just behind at 15%.
Tips on How to Save more on Bundling
* Get all the discounts you deserve.
Are you a military veteran or a teacher? If so, you may be able to save even more than the normal bundle deal. Also, if you have a security monitoring system installed you can get a better rate. Make sure though that you get the policy that covers you adequately and do not skimp on coverage. After all, your home is your castle and a big investment you need to protect properly.
* Compare Rates Online
The internet has not only made our lives easier by booking reservations in seconds and thousands of other things but it’s an amazing tool for saving money. Shop for the cheapest bundled auto and home insurance online in just a few minutes.