As the quest continues to save money on insurance premiums, individuals and families may be overlooking a common method to doing so. Going with one company could just be the ticket, not only for the health of your bank account, but also to make things just a bit simpler.
The Origin of the Problem
Think about these common situations, which may help to explain how one’s insurance policies become, to borrow a term from another real of finance – “diversified” (in regard to the companies):
- Auto insurance: When you learn to drive and get your first car, you begin under your parents’ plan. You continue to use this insurance company, or perhaps switch after a while to save a bit of cash.
- Homeowners insurance: Perhaps your real estate or title company recommended a certain company.
- Other insurances: Similarly, you go with a reasonably company, taking what you had under your parents/family, or the best policy at the time, you get a good price and don’t think much about it anymore.
Does this sound like you? Even if it doesn’t, the end result is a common sight when it comes to consumers in the world of insurance.
Do You Have a Lot of Insurance Companies?
No matter how you got there, you might want to take note if you have several different companies providing coverage for you.
If you don’t share one company between the essential insurances – home, auto, life, and health – this could make you part of the club. It’s easy to get there, as we just saw, but it’s thankfully easier to re-evaluate your situation and possible alternatives.
While getting the best price on a single policy can be great, you might be missing out on increased savings. Indeed, you should take note if you fall into this category.
Bundling to Save
Bundling insurance policies can go quite a ways to save you money. It is certainly worth checking out, as this can draw out competitive prices from insurance companies.
You might notice that the “little fish” in the insurance pool are able to offer great rates on a single policy. If you’ve compared your auto insurance, you might not notice some names towards the top. The big insurance companies price their rates to attract particular segments of the market – such as homeowners who have multiple insurance needs.
It won’t be hard to find companies that give substantial discounts for the three major needs (auto/home/life). The company will benefit from economies of scale, which allows them to offer more discounts by getting more total premiums.
Wide Scale Comparison Shopping
How do you take advantage of this? Yes, you guessed it – it comes down to, once again, comparison shopping.
However, start first with one of your current providers. With some information, you might be able to get a quote on adding an additional policy – switching form another current provider – in order to bundle with just one. While you can’t exactly get a “bundled quote,” so to speak, on the Internet easily, you can see what one of your current companies has to say.
Otherwise, head to some of the bigger insurance companies. Outline what you need in the policies that you are considering for a bundle, and see what they have to say. You should, of course, make sure the company offers such services before you go.
Keep your needs close to you when you do comparison shopping. As you are looking for quotes for multiple policies, you will have a lot to look through. It will be helpful to have everything you need on paper, from your life insurance payout requirement to deductibles and more for everything.
It might not be easy, but certainly well worth it. It’ll be nice to save some cash, as well as having one company for all or most of your insurance needs.
