If you've been chasing cheaper rates by switching your auto or homeowner's insurance policy from carrier to carrier each year, you may actually be losing out on longer-term savings, including loyalty discounts and bundling benefits. And for those who aren't well-versed in the specifics of their insurance policy, going with cut-rate coverage can backfire when you find yourself facing a hefty deductible or skimpy benefits after you've made your first claim. What can you do to maintain low-cost coverage without sacrificing security? Read on to learn more about some of the expected--and unexpected--benefits you may be able to achieve by bundling your home and auto insurance with a single provider.
Bundled Premium Savings
Most insurance companies that offer both home and auto coverage also offer a premium or deductible discount for clients who carry both types of policy with the same provider. In many cases, this discount can exceed any higher premium price you'll be charged, saving you money even if the face value of one or both policies isn't the cheapest available. It's often worthwhile to have your home and auto insurance policies quoted with a single provider to see what type of bundled rate you can expect rather than trying to piece together coverage from several different agencies.
Even those who rent may be able to benefit from bundling, as many insurance companies often offer rental insurance to protect against damage to a renter's personal belongings. Rental insurance can also cover a renter's liability to the landlord or other tenants. For example, if a renter's toilet overflows and causes water damage to the apartment below, without renter's insurance, the renter may be personally liable for any damages; renter's insurance can pay for damage to personal items as well as structural damage caused by a tenant's negligence for a fairly low monthly premium.
The time it takes to solicit quotes, set up payments, and research coverage each year when your policy renews can add up, and if you find yourself unwilling to tackle this challenge one year, you could wind up paying higher premiums (or finding that your coverage has slowly eroded) until you delve deeper into your coverage options to ensure you're adequately protected.
By holding both your home and auto insurance policies with one provider, you'll find the insurance payment and claims process to be much simpler; you'll need only a single point of contact (or an insurance agent) to make payments, get coverage information, submit a claim, or ask questions. You may find that the increased efficiency you enjoy by having your insurance policies held by a single agency can far outweigh any increase in your premiums
In addition to any bundling discounts you may see by switching your home and auto insurance policies to one provider, you may also be able to take advantage of loyalty discounts by maintaining coverage for a few years. These discounts can take the form of reduced premium rates, "vanishing deductibles," or even cash bonuses paid out to you on an annual or semiannual basis.
Other policies can even offer claim forgiveness for customers that have maintained coverage for a specified period of time. This can mean that if you're involved in an at-fault auto accident or your home is hit hard by storm damage, you'll be able to submit your claim without worrying about your premium rates increasing (or worse, worrying about your coverage being dropped).
Before signing up for your new home or auto coverage, you'll want to look into the loyalty discounts offered by this company in addition to any bundled savings and use these figures to calculate your total savings over time. For more information, contact companies like McHugh Insurance.