In most cases, combining the insurance policies for your home and autos can save you money. Most major insurance providers now offer a single policy that covers both. And besides saving money, there are other benefits as well. Overall, having a singular insurance policy to cover your car and house is a very popular trend. Allstate, Geico, AAA, State Farm and various others are all offering these types of policies. But how do they work? What is it about combining your policies that will allow your insurance provider to charge you lessened premiums?
Facts about combining your automobile and homeowner's insurance policies:
Most insurance companies will offer you a significant discount for keeping both of your policies listed with them. Using such a combined program for insurance, the company knows that there is little probability that you will ever be filing claims against both your home and your automobile policies during the same year. So according to statistics, each insurance company is relatively sure that they will be making money regardless of how your personal situation develops. And of course, the same is true for each individual policyholder. If you file a homeowner's insurance claim, the company is still generating profit from your automobile insurance policy. Likewise, if you file an automobile insurance claim, the company will still profit because you are paying for homeowner's insurance that will go unused. In general, the ratio between your likelihood of filing a dual claim and the expected earnings of the company will always be in favor of the insurance provider.
These statistics are based on individuals that carry significant insurance policies for both their homes and autos. Be aware also that each individual insurance provider will only be providing you premium quotes for their company. It definitely pays to comparison shop online and get the best price quotes from all participating major insurance providers.
For those who only carry liability coverage on their automobile insurance policies, combining the homeowner's insurance policy with the automobile insurance policy may actually become more expensive. Simply put, insurance companies experience more risks providing coverage to individuals that do not elect for collision coverage or full coverage policies. If you elect to only carry the minimum liability insurance coverage for your automobile, you will most likely be better off to have a separate insurance provider for your homeowner's insurance. The reason is simple: if you only have minimum liability insurance coverage and you are involved in an accident in which you are at fault, you stand to lose all of your assets - including your home. It just makes no sense from an insurance company's perspective to be in that game.
Tips for saving money by combining your homeowner's insurance and automobile insurance policies:
- Always make it a point to perform thorough online comparison shopping in order to get the best premium rate quotes;
- Choose deductible levels at higher levels, as you can afford to, in order to further reduce premium rates;
- Make sure that you are receiving all insurance discounts that you are qualified to receive by reading the small print on your insurance policies;
- Home and automobile security devices almost always qualify owners for appreciable discounts;
Never rush into selecting an insurance provider. Take your time to research the financial strength of the company that you're considering. In the majority of cases, you will find that you will save significant amounts of money by combining your homeowner's and automobile insurance policies.
