You see the TV commercials all the time: Bundling auto and homeowners insurance saves you money, the ads claim.
Well, turns out it’s true. At least, it’s often true, according to a study from Quadrant Information Services commissioned by insuranceQuotes. The results vary widely from state to state, though, as insuranceQuotes points out:
For instance, consumers who bundle auto and homeowners insurance in Mississippi can expect an average annual premium discount of 23.2 percent. However, bundling auto and homeowners insurance in Florida only results in an average premium discount of 6.7 percent.
What’s more, bundling discounts will vary depending on what two policies are combined. For instance, the average national premium discount for bundling auto and homeowners insurance is 16.1 percent, but bundling auto with renters insurance will only save consumers an average of 7.9 percent on an annual premium.
There are several reasons bundling can save money, according to insuranceQuotes:
“This all comes down to competition,” says Tennessee-based insurance broker John Hatcher. “There are so many companies out there that can offer lower rates that it’s become harder to keep customers long-term. But the more policies you have with one insurer the longer you are likely going to stay with that company.
“I see this all the time. Everyone wants as many policies on the books as they can get because that means customers will stay with their agency longer.”
What’s more, customers who bundle multiple policies tend to file fewer claims, which winds up saving the insurance company money in the long run, says Arizona-based insurance broker Charlotte Burr.
Of course, every case is individual. That’s why at Seeman Holtz Property & Casualty Insurance, we focus on getting you the best insurance possible. Our experts have access to top carriers and offer all lines of personal and commercial insurance.
Our seasoned brokers are happy to provide a no-obligation quote.