Insurance is like death and taxes; it is something we can’t avoid and must always pay. However, there are some proven ways to get the coverage you need and save some serious money. If you own a home and car, you can bundle those two policies together and get a nice discount. Get your homeowner’s insurance coverage lowered today. Let’s look at the states with the cheapest bundled auto and home insurance and go over some tips on saving more of your money.
If you have used up all the possible savings for your automobile policy, think again. You can do at least one additional thing 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. Bundling insurance 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 add a new line efficiently to an existing policy adds revenue and profitability. Because the insurer now realizes two income streams from one customer, they can pass along more savings and make the deal attractive to the client. Also, people that get a reasonable 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 that people 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 know this too and find easy targets to sell these insurance products to, such as those customers who have existing bundled products.
Rates for Cheapest Bundled Auto and Home Insurance Policies vary by State
While almost every company provides 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 kind of policy can add up to $100s per year, so if you are a homeowner, at least it is worth it to get a quote.
According to the quadrant, four states 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 save you about $200 yearly if you bundle here, so even in these states, it makes sense. If you are insuring a condo, Texas 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 average bundle deal. Also, you can get a better rate if you have a security monitoring system installed. Make sure that you get the policy that covers you adequately and does not skimp on coverage. After all, your home is your castle and significant investment you need to protect adequately.
* Compare Rates Online
The internet has not only made our lives easier by booking reservations in seconds and thousands of other things, but it is a fantastic tool for saving money. Shop for the cheapest bundled auto and home insurance online in just a few minutes. Insurance comparison sites will provide you with up to 10 quotes for the plan you want and help you get additional discounts. Get going today and lower your insurance costs online with a custom quote.