Why Policyholders Should Combine Home And Car Insurance Policies
Drivers in every state are required to carry automobile insurance when they own or are leasing a vehicle registered for use on public roads. While auto insurance is a requirement, it also acts as a buffer of protection that protects a driver's assets when they cannot financially cover injuries and damage they cause in an accident. While auto insurance rates are determined based on several different rating factors like driving record, vehicle type, and driving experience, there are ways for drivers to keep their rates low by taking advantage of discounts that most of the leading Property and Casualty insurers offer.
The Multiple Line Discount and How it Works
Drivers can choose from a myriad of different discounts, including discounts for being claims-free, accident-free, or even for owning more than one car. The most effective way to keep premiums manageable is for a policyholder to take advantage of every discount they are entitled to. One of the dozens of different discounts that insurance companies offer policyholders is referred to a multiple line discount.
The multiple line discount is available to policyholders who insure their automobile and their property with the same insurer. By carrying both auto insurance and home insurance with the same carrier under the same name, the policyholder will be eligible to save. Discounts will be applied to the auto insurance policy and the home insurance policy as well.
The Financial Benefits of Combining Car and Home Insurance Policies
The multi-policy, also referred to as an "account" discount in some states, will save anyone who is eligible a significant amount of money by reducing premiums on two policies instead of just one. Home insurance does not just include a homeowners policy. Other property policies that will qualify for the multi-line discount include condo unit owner policies and renters policies.
The total savings policyholders will receive from this discount may vary from company to company. The average savings on an auto insurance policy for combining home insurance is 10 percent. Some companies will offer larger discounts for drivers who have homeowners insurance, compared to having a renters policy. The average discount applied to a home insurance policy for maintaining auto insurance is between 25 and 35 percent. While the individual savings is enough for policyholders to combine policies, when the savings are added together, it is easy to see why so many people choose to carry their auto and home insurance with the same carriers.
The Other Benefits of Combining Home and Car Insurance
Not all of the benefits are financial. Looking past cost, there are a number of other benefits of combining home and car insurance. One of these benefits is convenience. When a policyholder has insurance with the same carrier, it takes only one call to change an address, ask questions on billing, or make any other inquiries. This cuts the time it takes to service policies in half, which is important in a busy world where time is money.
Another non-financial benefit is that many people who would choose not to carry optional property insurance policies will see the savings and opt to buy the coverage even though it is not a requirement. While there are financial responsibility laws that require drivers in each state to maintain a minimum level of auto insurance to satisfy state laws, no such laws exist for renters and individuals who own their homes. Because property insurance is not a state requirement, some opt to take the chance and live without coverage. The sizable discount that policyholders receive is now influencing more and more people to buy and maintain renters and condo insurance.
The benefits of combining auto and home insurance go beyond just the cost of insurance. For policyholders who are searching for lower premiums, it is best to price the cost of insurance with this multi-line discount to find out just how much money they can save. Wise shoppers are visiting CheapCarInsurance.net to find out whether or not they are paying too much for their insurance.