If you need a discount, buy your new insurance policy from the same insurer you bought existing policies from. it's called a multi-policy discount.
However, all the amount you may save may still become insignicant if weighed with savings you'll make by buying your policies from different insurance companies. I'll take some time out to explain this...
We'll make-believe that a given profile got the following rates from several insurance companies when he shopped for different insurance policies...
Insurer A...
Auto insurance: $2,487
Home insurance: $1,400
Health insurance: $2,320
Insurer B...
Auto insurance: $1,472
Home insurance: $2,120
Health insurance: $2,724
Insurer C...
Auto insurance: $3,500
Home insurance: $2,080
Health insurance: $1,640
As is now very clear, the insurer who offered the cheapest quote for auto insurance did not have the lowest for any other insurance policy.
So this is what he'd get with a ten percent discount if he goes ahead to still get all his policies from Insurer B...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10% of $6316) = $5,684.40
Conversely, he would spend the following on insurance as a whole if he goes for the insurer that offers him the most affordable rate for each policy...
$1,400 + $1,472 + $1,640 = $4,512
Therefore even though he'll get a multi-policy discount if he buys all his policies from a particular he'll not save as much as he did by buying from different insurers.
Saving as much as $1,172.40 isn't one that should be passed off.
This is impressive; but how do you know which yield more savings bearing in mind that another individual could actually be better off with a multi-policy discount?
The way out is quite easy...
Create some time to obtain and evaluate quotes for each insurance policy not less than 3 insurance quotes sites. Calculate what you'll get as multi-policy discount and compare it with what you will pay if you buy from different insurers.
However, all the amount you may save may still become insignicant if weighed with savings you'll make by buying your policies from different insurance companies. I'll take some time out to explain this...
We'll make-believe that a given profile got the following rates from several insurance companies when he shopped for different insurance policies...
Insurer A...
Auto insurance: $2,487
Home insurance: $1,400
Health insurance: $2,320
Insurer B...
Auto insurance: $1,472
Home insurance: $2,120
Health insurance: $2,724
Insurer C...
Auto insurance: $3,500
Home insurance: $2,080
Health insurance: $1,640
As is now very clear, the insurer who offered the cheapest quote for auto insurance did not have the lowest for any other insurance policy.
So this is what he'd get with a ten percent discount if he goes ahead to still get all his policies from Insurer B...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10% of $6316) = $5,684.40
Conversely, he would spend the following on insurance as a whole if he goes for the insurer that offers him the most affordable rate for each policy...
$1,400 + $1,472 + $1,640 = $4,512
Therefore even though he'll get a multi-policy discount if he buys all his policies from a particular he'll not save as much as he did by buying from different insurers.
Saving as much as $1,172.40 isn't one that should be passed off.
This is impressive; but how do you know which yield more savings bearing in mind that another individual could actually be better off with a multi-policy discount?
The way out is quite easy...
Create some time to obtain and evaluate quotes for each insurance policy not less than 3 insurance quotes sites. Calculate what you'll get as multi-policy discount and compare it with what you will pay if you buy from different insurers.
About the Author:
Learn more here: Affordable Auto Insurance and Discount Auto Insurance. Chimezirim Odimba is a financial expert.
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