Combining insurance policies could help you save some serious cash. Chances are, your auto insurance company is not only an auto insurance company. They probably offer life insurance, homeowners insurance,health insurance, dental insurance, etc. They probably also give discounts for buying multiple types of insurance through their company – Sort of like a package deal. It’s similar to the cable TV companies these days. They don’t just offer cable TV anymore… they have internet, telephone, and sometimes even mobile phone. They often have promotional specials advertising that if you buy all four of them through their company, you will get a huge discount. Insurance companies are the same way.
Why Do Insurance Companies Give Discounts For Combining Policies?
Insurance companies offer these promotions for various reasons. The main reason is that it costs them a lot of money to add new customers to their network. They would rather “upsell,” or sell their current clients additional services. This is much cheaper than sending out ads, recruiting new members, and adding them into the system. If they could simply get you on the phone and sell you an additional type of insurance for a discounted rate, they would much rather do that. Secondly, they want to “lock” you in. They figure that if you have all of your insurance through a single company, you are more invested in them – that it’s harder for you to switch and get another company. They are right. The result is, you save a lot of $$$.
Insurance companies value loyalty. They would love to see their customers be policy holders for life. Some insurance companies even offer loyalty discounts for customers who stay with them for several years. The longer you stay at a company, the more discounts you will get. Think of it as “acquiring discounts.” At first you may get a multi-line discount to combine all your policies under the same company, then you pay get loyalty discounts down the road.
Another type of insurance policy combination you can do, that you may have not even thought of, is to combine your policy with your spouse or family members. As long as you share the same address and same possessions (ex. Vehicles are registered in both of your names), you could qualify for discounts on some of your insurance policies.
How To Get These Discounts
The best way to make sure you are taking advantage of all the discounts at your disposal is to do a policy review with your insurance company at the end of every year. Ask them what discounts are out there, if there are any ways to save money buy combining policies, etc. Also make sure to get price quotes from different companies and present them to your insurance agent in order to show them what you could be getting from other insurance companies. If your insurance company values your business, chances are they will pull out all the stops to “hook you up” with whatever discounts are available.
Benefits Of Combining Your Insurance Policies
Combining your insurance policies also brings some other benefits that you may not have realized:
- All insurance bills will be consolidated into one. Gone are the days of losing your bills in the mail. You will also no longer have to worry about paying all of your bills on time. Think of all the paperwork you will “miss out on.” Sounds appealing, right?
- If you get into some type of car accident that requires medical attention, think of all the headaches you would save by having both your health and auto insurance policy through a single insurance provider. You will not have to juggle insurance claims and go back in forth with the medical and auto insurance companies trying to get coverage. When you are lying in a hospital bed, this is probably the last thing you want to do. If you combine your policies, it will just make everything that much easier.
- There will only be one renewal date. You will no longer have to worry about being covered. Instead of constantly renewing your auto, health, homeowners, etc. insurance throughout the year, you will only need to worry about renewing it one time.
So, after reading all this, are you ready to save? Call up your insurance company right now and begin negotiating. If they won’t budge on their prices, who cares? You don’t need them. At American Independent Insurance Group we compare insurance quotes from multiple providers. There are discounts to be had everywhere.