If you need a discount, get your new insurance policy from the same insurer you bought existing policies from. This is called a multi-policy discount.
Nevertheless, all the amount you may get as discount may still pale into significance if compared with savings you will make by buying your policies from several insurers. I'll shed more light on this...
Let's imagine that a certain profile has the following rates from 3 different insurers...
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
You can see that Insurer B gives him the most affordable rate for auto insurance but does not give him the best quotes for health or home insurance..
Assuming that he buys the 3 policies from Insurer B and gets a a 10% multi-policy discount, his total would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10 percent of $6316) = $5,684.40
On the other hand, he would spend the following on insurance as a whole if he goes for the insurance company that gives the best quotes for each policy...
$1,400 + $1,472 + $1,640 = $4,512
This example proves that it is more beneficial for this prospect to buy from different insurance companies as he would get more savings that way.
$1,172.40 is certainly not an amount you should throw away and that is what he would have lost if he had gone for a multi-policy discount.
So are you sure of which would yield more savings for your profile?
So here's how to discover...
Make out some time to obtain and evaluate quotes for each of your different insurance policies not less than 3 insurance quotes sites. Compare the total you will pay by buying from insurers who have lowest quote for each policy with what your agent says you'll get as multi-policy discount for buying from the same insurer.
Nevertheless, all the amount you may get as discount may still pale into significance if compared with savings you will make by buying your policies from several insurers. I'll shed more light on this...
Let's imagine that a certain profile has the following rates from 3 different insurers...
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
You can see that Insurer B gives him the most affordable rate for auto insurance but does not give him the best quotes for health or home insurance..
Assuming that he buys the 3 policies from Insurer B and gets a a 10% multi-policy discount, his total would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (10 percent of $6316) = $5,684.40
On the other hand, he would spend the following on insurance as a whole if he goes for the insurance company that gives the best quotes for each policy...
$1,400 + $1,472 + $1,640 = $4,512
This example proves that it is more beneficial for this prospect to buy from different insurance companies as he would get more savings that way.
$1,172.40 is certainly not an amount you should throw away and that is what he would have lost if he had gone for a multi-policy discount.
So are you sure of which would yield more savings for your profile?
So here's how to discover...
Make out some time to obtain and evaluate quotes for each of your different insurance policies not less than 3 insurance quotes sites. Compare the total you will pay by buying from insurers who have lowest quote for each policy with what your agent says you'll get as multi-policy discount for buying from the same insurer.
About the Author:
To learn more go to Affordable Auto Insurance and Discount Auto Insurance. Chimezirim Odimba writes on financial matters.
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