Combining Home and Auto Insurance Can Save You Hundreds

It is true that combining home and auto insurance can save you hundreds of dollars annually, but you should base your decision on strong research. Unlike shopping for auto insurance alone, the combination or bundling aspect requires much more attention.

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Recently, car insurance companies seem to be focusing on combining auto and home policies for extra savings. It seems like this is their main objective, to help consumers pay as little as possible. Many use the economy as a marketing tactic to help increase their customer’s loyalty. They know everyone wants to save as much as they can without compromising their coverage levels.

While property liability insurance falls into many categories, cars and homes receive the most attention. If you own either, it is only practical to make sure you protect them.

Homes and cars are huge investments that usually require long-term payments.

The whole idea of bundling their policies for a better value is not very new. In fact, the largest cable company in the United States, Comcast Cable actually started this process over seven years ago. The premise is the more you buy, the cheaper the price. It seems to work in theory.

Since this time, most companies that sell more than one product began combining them into packages or bundled policies. They provide percentage discounts and sell their coverage successfully.

However, unlike cable services, the insurance industry deals in risk management. This means the majority of the customers who benefit most have great credit and excellent driving histories. These numbers represent the minority. Over time, at least one or two accidents happen. Every reported damage claim pushes you further away from perfection.

Before you start making changes to your individual policies, you had better complete the necessary homework. You may not fit into correct category, at which point it would be to your advantage to remain right where you are.

Start with Your Current Auto and Home Insurance Companies

The first and most logical step to combining your auto and home insurance policies begins with your present rate for each; this means you need to locate both of your policies. In order to see how much you can save, you need to know your current level of financial responsibility.

You should definitely reach out to both your home and auto insurance providers and start making inquiries. Call your homeowner’s insurance company first.

According to the J.D. Power Customer Satisfaction Study, customers are not very happy with their current policy offerings. The numbers are down 23 points when comparing 2009 and 2010. This means they may have to do a little juggling to make you stay. You can benefit from this information.

Find out what they charge for auto insurance by asking for a quote. Compare this rate to what you pay separately with your auto insurance company. Take detailed notes because you are going to need to review everything later.

Let them know you have an interest in adding auto insurance to your homeowner’s policy as long as they can provide you with a fair and comparable rate. Do not accept percentage amounts. Ask them to give you a dollar value. You should not need to complete any calculations they are the experts.

Your next call should be to the auto insurance company. Complete the very same steps and see who has the better deal. Remember, you should not have to downgrade any services to receive a low price. They should base the reduction on your willingness to purchase another product, thereby remaining a faithful customer.

Locate the Top Insurance Providers

The top providers will offer both automobile and homeowner’s protection. You need their prices to comparison-shop. Just because you received rates from your personal insurance carrier, does not mean you can skip this step. More than ever, you need multiple quotes and price points.

The Consumer Federation of America lists 54 ways the average consumer can save money. Shopping around for homeowner’s and auto insurance topped their list. The worst thing you can do is settle without doing the proper research. This practically guarantees failure.

If you want to quicken your pace, you can use the Internet for fast auto insurance quotes, rather than speaking directly to a representative. This will help you gain a foothold when you actually do reach out. If you let them know that you have a serious inquiry regarding combining both, they will probably give you one rate. This will help you identify the difference because you already have the car insurance rate.

Just make sure you ask as many questions as you can. You need to know the specifics involved with the quote they provide. This helps you decide if they have the same offers as your current insurance company. If they do not have similar coverage, avoid them and move on to the next company.

Capitalize on Natural Disasters

This may sound harsh, but you need to start thinking as insurance companies do. This means taking advantage of the current situation. Over the past few years, homeowner’s insurance companies have taken a real beating with casualty losses.

The United Nations Office for Disaster Risk Reduction reported catastrophic losses for the insurance industry during 2011. They estimate anywhere from $350 billion to almost $400 billion globally.

The Department of Homeland Security shows the United States’ share of these natural disasters cost the country over $32 billion.

Approximately 8% to 9% of the entire global casualty loss amount fell on America’s soil.

Although only a few events occurred, they all resulted in billions of dollars of damage to homes and businesses. Since the largest insurance providers operate on a global scale, they all feel the affect. This means they really need to start packaging their policies to recover from these monetary damages.

The best way to increase revenue quickly is to pair their products. Earning profits from auto insurance premiums is a stable move. Although they need to make massive payments for homeowner’s policies for major damage, they can make sure they have a steady income.

You have a real good chance of getting an excellent bundle if you act quickly. Many of these insurance companies want to secure a specific number of customers. They want to increase their customer base by packaging their auto and homeowner’s insurance together. The trend may end quickly so it is best to investigate which one works best for you and sign your contract.

Consider the Pros and Cons Carefully

The most obvious advantage to combining your auto and home insurance policies is the savings aspect. You could stand to save a substantial amount of money if you play your cards right.

The number of companies who offer the option to bundle your polices is small. This is a great time saver because there are less insurance providers who offer packages than those who individualize. You do not need to complete hours of research, but spend at least two to three gathering data. You can cut through the huge list and go directly to those who feature this option. However, once you make up your mind, do not delay.

Another key point is you only have to make one payment. This is very convenient and you are less likely to make late payments or miss any. You eliminate a great deal of stress since you satisfy both financial obligations at the same time.

When you select the package option, they often combine your deductibles too. You may not have to pay for your car and home if both suffer damage simultaneously. Rather, they may ask for the highest amount. This is still a plus because you save money either way.

One of the drawbacks is also an advantage, depending on your perspective. The options are quite limited. This means you may need to select a company you do not care for if you want a great bundle for your home and auto insurance coverage.

Under normal circumstances, you may not choose car insurance company XYZ based on their individual product rate. However, since they have a great package price for both, you will think about doing business with them.

Additionally, if you paid your homeowner’s insurance policy through the finance or mortgage company, there is additional paperwork required. You may also still need to pay a separate check although you combined your policies. This is something you should obviously verify before you make your commitment to change.

Wait to Cancel Your Old Policy

You probably already know this, but it is worth repeating especially from the homeowner’s insurance standpoint. Many customers pay this premium in full once a year.

Do not cancel your old policy until the new package goes into effect otherwise you run the risk of major problems. Find out if they have a cancellation period. The majority of car insurance policies prorate your statement if you terminate your agreement early. If you pay monthly, it will be a minimal amount.

However, homeowner’s insurance contracts can have loopholes because they cost more. The value of your home is far greater than a vehicle so discuss all of your options before you submit your official cancellation notification. Afterwards, wait for the paperwork to arrive in the mail, and then make the call.

Do Not Get Complacent

Once you have your combination policy, never get complacent. This decision is not meant to last indefinitely. You can continue to shop around every two or three years to make sure you still have the best deal possible.

If you find another company that beats your rates, consider making a switch.

You should have enough confidence now to determine the best course of action. Remember to keep the most important factors in mind. Your rates are the primary factor, but so is your provider’s level of professionalism and customer service. Stick with the company, even if there is slight increase if they treat you right.

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