October 4, 2008
Why does the premium drop when you add home insurance to an car insurance?
Katelyn B asked:
When one has car insurance alone, insurance companies state that if one is to also get home insurance from the same company, the sum of the two insurances will be less than the original car insurance alone… Why should insurance companies take less premium for providing more service?
When one has car insurance alone, insurance companies state that if one is to also get home insurance from the same company, the sum of the two insurances will be less than the original car insurance alone… Why should insurance companies take less premium for providing more service?
Filed under Insurance by admin
Comments on Why does the premium drop when you add home insurance to an car insurance? »
that’s loyality discount to get more business from same number of clients. It is a very competitive world out there.
Insurance company would like insured to stay with the company as long as possible to service their insurance needs. It’s been proven that in insured have more than one kind of insurance with an company the insured unlikely to change. But usually combine two insurance should not be less than orginal car insurance alone. You might want to double check with your insurance agent. There should be discount like 10% to 20% of the total premium of two insurance policies depend on the state and the insurance company! Hope this will help!
its called a multi policy discount. they give this discount to people as an incentive to get them to let that 1 company write all lines of business.
Because when they write both your car and your house insurance, they’re more likely to retain your business - renew it, year after year. Hence the discount.
The sum of the two will not be less than the auto coverage alone; however, they may offer a discount that makes the total less than the sum of both policies purchased separately.
It’s a “package discount” - an incentive to write BOTH lines of business.
I’ve had good results here…
Good Luck.