Multi-Line Discounts May Save You Hundreds of Dollars a Year
Looking to save money on your insurance premiums every month? You should consider taking advantage of multi-line discounts or bundling insurance policies.
Many insurance carriers offer significant discounts for customers who place multiple types of insurance with the same company. In some instances, annual savings may amount to more than $300, according to a new survey by Quadrant Information Services.
The insurance information firm recently took a state-by-state look at the savings consumers could realize by bringing multiple personal insurance lines together under the same roof – a practice known as “bundling insurance policies”
Savings varied by state, as well as the type of insurance policies being bundled together, but the results were clear and unambiguous: On average, consumers in all states were able to save money by bundling.
The best results came from bundling auto and homeowner’s insurance with the same provider. On average, this saved consumers $322 nationwide, for a total savings of 16% of annual premiums for these lines.
Bundling auto and condo insurance likewise lowered premium costs – by an average of 11.6% nationwide, the study found.
It’s not just homeowners who can generate savings through bundling. Renters also realized a nationwide average savings of 8% when they combined their renter’s and auto policies with the same carrier.
Why does bundling work for carriers?
Insurance carriers offer these discounts for a variety of reasons. It’s expensive for insurers to attract a new customer, and carriers are constantly trying to compete for business.
But adding an insurance line to an existing customer is much less costly for carriers than the marketing and sales cost of bringing on a new client from scratch – so it’s possible for them to pass part of those savings on to the customer.
Insurance carriers also know that the more types of lines a given customer has with a carrier, the longer they stay with them.
Bundling insurance policies with the same carrier also simplifies your financial life, say experts. Not only can you save money, but you also have fewer bills every month, and fewer checks to write or electronic drafts to keep track of.
How to realize your savings
Contact VGW Insurance at 972-771-7373 or visit our website at vgwtexa.wpengine.com and we will provide coverage options that will fit your individual needs and will provide significant multi-line discounts for bundling insurance policies.