If you need a discount, get your new insurance policy from the same insurer you bought your other policies from. it's called a multi-policy discount.
Even though it pays to take advantage of a multi-policy discount, you may save more by buying your various policies from various insurers. I willexplain this further.....
We'll make-believe that a certain prospect got the following rates from different insurers when he shopped for various policies...
Insurer A...
Auto insurance: $2,487
Home insurance: $1,400
Health insurance: $2,320
Insurer B...
Auto insurance: $1,472
Home insurance: $2,120
Health insurance: $2,724
Insurer C...
Auto insurance: $3,500
Home insurance: $2,080
Health insurance: $1,640
You can see that Insurer B offers him the cheapest quote for auto insurance but doesn't give him the best quotes for health or home insurance..
If we assume that he buys the three policies from Insurer B and receives a ten percent multi-policy discount, his total would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10 percent of $6316) = $5,684.40
On the other hand, he'd spend the following on insurance as a whole if he goes for the insurance company that offers him the most affordable rate for each policy...
$1,400 + $1,472 + $1,640 = $4,512
You can see that notwithstanding the fact that buying health and home insurance from the auto insurance carrier may entitle him to multi-policy discounts, he would save more by getting each policy from several insurance companies.
In this case he'll save $1,172.40!
So are you sure of which would yield more savings in your case?
So here is how to discover...
Get a large number of quotes from various insurance carriers for each policy. Contrast the sum you will pay by buying from insurers who have most affordable quote for each policy with what your agent says you'll get as multi-policy discount for buying from one insurance company.
Even though it pays to take advantage of a multi-policy discount, you may save more by buying your various policies from various insurers. I willexplain this further.....
We'll make-believe that a certain prospect got the following rates from different insurers when he shopped for various policies...
Insurer A...
Auto insurance: $2,487
Home insurance: $1,400
Health insurance: $2,320
Insurer B...
Auto insurance: $1,472
Home insurance: $2,120
Health insurance: $2,724
Insurer C...
Auto insurance: $3,500
Home insurance: $2,080
Health insurance: $1,640
You can see that Insurer B offers him the cheapest quote for auto insurance but doesn't give him the best quotes for health or home insurance..
If we assume that he buys the three policies from Insurer B and receives a ten percent multi-policy discount, his total would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10 percent of $6316) = $5,684.40
On the other hand, he'd spend the following on insurance as a whole if he goes for the insurance company that offers him the most affordable rate for each policy...
$1,400 + $1,472 + $1,640 = $4,512
You can see that notwithstanding the fact that buying health and home insurance from the auto insurance carrier may entitle him to multi-policy discounts, he would save more by getting each policy from several insurance companies.
In this case he'll save $1,172.40!
So are you sure of which would yield more savings in your case?
So here is how to discover...
Get a large number of quotes from various insurance carriers for each policy. Contrast the sum you will pay by buying from insurers who have most affordable quote for each policy with what your agent says you'll get as multi-policy discount for buying from one insurance company.
About the Author:
Learn more at Affordable Auto Insurance and Discount Auto Insurance. Chimezirim Odimba is a financial expert.
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