Multi-Policy Discount -- When To Avoid It

You can get considerable discounts if you buy your auto insurance policy from the same company that provides your health and home insurance. Every insurance company will typically give a discount if you make a purchase of more than one policy from them.

That said, it may not benefit you more to do this as you might be more profitabe if you buy each policy from different insurers. I willexplain this further.....

Let's imagine that a certain individua gets the following quotes from 3 separate 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


Now, Insurer B offers him the most affordable rate for auto insurance but doesn't offer him the cheapest quotes for health or home insurance..

So here's what he'd pay with a 10 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 percent of $6316) = $5,684.40

However, if he buys from insurance companies who offer him the most affordable rates for each policy his total insurance spend would be...

$1,400 + $1,472 + $1,640 = $4,512

So even though he'll get a multi-policy discount if he buys all his policies from one he'll not save as much as he saved by buying from different insurers.

Saving as much as $1,172.40 isn't one that should be over looked.

You might be pondering on how to know whether it is better for you to ignore a multi-policy discount or grab it.

So here is how to find out...

Make out some time to obtain and evaluate quotes for each insurance policy from at least 3 insurance quotes sites. Pick the cheapest quotes offered for each insurance policy and then just compare their sum with the amount you will pay after a multi-policy discount and you'd know which is more beneficial for you.
Lowering Your Rates Will Really Save You A Lot More...
Get Quotes Now!