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Insurance relies heavily on advertising. That is not surprising because there are so many companies throughout the country and competition for premium dollars is intense. Hard sales tactics can sway someone looking for insurance. Premium discounts are all over the place and price comparisons are a powerful marketing tool. It is no wonder that consumers will look for the best possible deal, even if appearances are deceiving.
A possibility that surfaces is you have one insurance company for homeowners insurance and another for your auto insurance coverage. The buyer takes advantage of lower premiums. It makes sense, doesn’t it?
Frankly, no, it does not. There is a bit more to this that you need to know.
Cost comparisons
Offering lower premiums is a means of getting the attention of more policyholders in a highly competitive market. But, consumers who purchase insurance based on the size of the premium alone might overlook the deductibles assumed in that premium quote- or the insurance coverage. A sizable deductible might make a premium quote attractive, but consider whether you can absorb the cost incurred before any covered loss is paid. Also, the policy language determines whether a loss is covered- are you comparing apples to apples? In other words, a person is buying cheaper insurance might find that company’s policy may provide less coverage.
Administration
Simply put, it is easier to manage bundled policies.
You decide how you are going to pay for your insurance: monthly, quarterly, bi-annually or annually. It is easier to manage the bills if you are only dealing with one insurance company. Record keeping is more straightforward, especially if you are only dealing with one insurance company. When you bundle insurance policies, you are communicating with only one insurance company and not several.
Online payments are convenient and are becoming more popular. You go to the insurance company’s website and sign up for electronic transfers. It is easier to deal with only one insurance company; using two insurance companies means you will need to access two separate websites, possibly need to have two different passwords and have two payment guidelines to follow. Why make things complicated when with bundling, you deal with only one insurer for both policies?
Serious discounts
Is bundling insurance worth it? We saved the best for last! Insurance companies want to have policyholders bundle their insurance and are willing to make it worth your while. At East Street Insurance we offer a multi-line discount. You could save 18% on your auto and 20% on your home policy premiums if you insure both your auto and home at East Street. Are you a bike owner? If you purchase insurance on your auto, home and motorcycle you could save another 18% on your motorcycle premium, too!
You need both auto and homeowners insurance
Any ethical insurance professional will tell you that you need coverage for both your automobile and your home (automobile insurance is mandatory in most states). The best reason for having an insurance policy on both your auto and home is to protect yourself against any financial troubles due to an unexpected event.
A violent windstorm can do tremendous damage to both your car and home. If you only have coverage for one, your finances might take a beating from assuming the total cost of damage incurred by the other. You take an enormous risk by ignoring a comprehensive coverage strategy.
You still have to be careful
Auto and homeowners insurance policies are essential and bundling incentives are appealing. People still get frustrated when they shop for coverage. There are separate guidelines and the question, “How much do I need?” remains to be answered. Getting the right amount of insurance does not have to be tough. East Street Insurance agents can help you.
Our agents are experts at patiently educating people about insurance. They will look at what you already have as protection and assist you in deciding the amount of coverage you really need and if you require more or have too much. They can explain policy coverages and how to file a claim. If you want to bundle the policies with East Street Insurance we think you will be nicely surprised at the amount you will save.
East Street Insurance will do more than sell you insurance policies. We are ready to answer every question a policyholder might have. We are sensitive to the needs of your security and safety (we practice social distancing). We think you will discover that working with us is a rewarding and safe experience.
Now is an excellent time to get the auto and homeowners insurance you need to protect your valuable assets. You can secure the coverage you need and learn more about insurance when you deal with East Street Insurance.
Please feel free to contact us at your convenience. We look forward to having a conversation with you soon!