About Multi Policy (Auto & Home) Insurance Discounts

Customer satisfaction with homeowners insurance companies has declined to the lowest level in five years, primarily because of decreases in satisfaction with policy offerings and customer service (J.D. Power and Associates 2010 U.S. National Homeowners Insurance Study released today). I like JD Power’s rankings, because they poll consumers. Unlike the financial ratings agencies (AM Best, Moodys, S&P, Fitch, etc), JD Power does not have any financial relationship with the insurers they rank.

Their study says that policyholders who bundle their auto and home coverages are happier than those who do not. Insurers that did well bundling how and auto include American Family, CSAA, Erie Insurance, State Farm and USAA. Is bundling auto and home insurance a good idea? There’s little dispute that combining types of insurance with one company can lead to lower rates. Let’s consider all facets of the multi policy discount:

Disadvantages of the Multi Policy Discount

  • You might not be able to get combine discounts the auto and home insurance discount;
  • If you pay your homeowners insurance through your mortgage, the auto, motorcycle or life insurance policies cannot be added so you may have to write multiple checks;
  • If you use two separate carriers now for home and auto, you’ll have to drop one to combine them;
  • You might have to switch providers entirely if your current auto or home insurer do not;
  • You may have to shop around when combing auto and home insurance, but most carriers will offer this; and
  • It requires serious research to compare bundled home and auto insurance plans among companies.

Advantages of the Multi Policy Discount

  • The discount. If your insurance company doesn’t offer a multi policy, shop around!. When we bundled insurance for our cars and home, we saved about 11 percent. Your savings will vary depending on the amount of coverage, deductibles, and insurance company;
  • You only have to work with one agent for your home and auto insurance. The agent will knows your property and coverage requirements. It’s helpful when you file a claim or make changes to your policy;
  • Fewer bills to juggle, so you pay on time. Especially if you sign up for automatic billing and your home and auto insurance premium is automatically deducted from your checking account or credit card; and
  • Bundling your insurance may help resolve any problems in filing a claim, so that your auto and home owners insurance carriers do not debate coverage with one another.