The Incentives Of Combined Auto/Home Insurance Policies

With the ever-increasing costs of automobile and home insurance premiums, purchasing both auto home insurance policies from the same insurer can be a great way of reducing your premium rates. While any insurance company appreciates a customer of that purchases a single policy from them, insurers offer their lowest premium rates to customers that have two or more policies. Therefore, here's a list of ways that purchasing multiple policies, from the same company, can benefit you:

Number One – Discounted Policy Premiums

Most insurers that sell homeowners insurance policies also sell automobile coverage policies as well. Many insurance companies will reduce your premium by up to 15 percent, if you buy two or more insurance policies from them; this is often referred to as a multi-line discount. In addition, an insurer may offer additional discounts if you choose to purchase an “Umbrella” excess liability policy. These types of policies provide additional liability coverage above and beyond that of standard automobile and homeowners insurance policies.

Number Two – Claims Convenience

If you ever need to make a claim under your automobile or homeowners’ insurance policy, you need only contact one insurance company for either type of claim. In the event of a catastrophic situation, in which both your home and vehicle are damaged or lost, then having to deal with only one insurance company will certainly make the claims process much easier and faster. Furthermore, some insurance companies offer express claims handling for preferred customers – policyholders that have multi-line policies are usually considered preferred customers.

Number Three - Two Policies, One Check

If you use a single insurance company, for both your automobile and homeowners insurance policies, then you'll probably be able to write one check to cover the cost of both premiums. In addition, the insurer will probably send your billing statements in a form that combines the two premiums together.

Likewise, if you have your insurance premiums electronically debited from your checking or savings account, a single debit (for the total amount of both policies) can make tracking your withdrawals and balancing your checkbook much easier.

Number Four – Reduced Risk of Cancellation

There may be times that you required to submit claims for coverage under either your automobile or homeowners insurance policy. Some insurance companies have been known to cancel policies, when certain types of claims are made against the policy coverage. While these types of cancellations do not occur very often, cancellations following the claim are not unheard of. However, an insurer may be more likely to reconsider canceling a policy - if you have two or more policies with them. This is because; the cancellation of one policy by the insurer may lead to the cancellation of the other - by the customer. Most insurers don’t want to lose the premiums from both policies.
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