Many realize the importance of insuring important items against potential damage or theft. As shelter and transportation are generally two essential high-value investments, auto insurance and homeowners insurance coverage are critically important to have.
However, paying for two separate policies on a monthly basis can cause a financial headache. For consumers looking to save money, combining auto insurance and homeowners insurance with a multi-insurance policy may lead to significant savings and a more manageable budget.
Advantages of multiple policies
Multiple policies, which usually combine auto insurance, homeowners insurance or other insurance policy types, may lower your monthly insurance bill by a significant amount. Many insurance companies provide discounts if you insure more than just car insurance for example with them. These insurers are able to secure more business through the same clients who, in exchange, receive discounts, in addition to convenience.
Since many multi policies can be combined onto one monthly bill, policyholders can have a streamlined process without having to repeat steps for each individual bill. In addition to the financial discounts, this will save them time, stress and even money on stamps.
Possible disadvantages
This type of coverage, though generally cost-effective, may also have some downsides that should be considered before combining insurance policies.
For those who pay their homeowners insurance through their mortgage company, the process may actually require them to write multiple checks to the same company, making things more complicated.
Additionally, those who have exceptionally low rates with their current auto insurer should not automatically assume combining insurance will lead to lower costs, as they may be better off remaining where they are.
The key to avoiding the latter problem is to get a multiple policy quote, compare the cost to what they’re paying now and see which is the better deal.
How to switch over
Switching to a multi policy to save money on auto insurance and homeowners insurance works similarly to signing up for a new insurance policy.
Even if the option of combining insurance is offered by the company the policyholder is currently insured with, they may benefit from performing searches and receiving online insurance quotes. Getting an insurance comparison could potentially enhance their savings, as some insurers may offer more affordable combined auto insurance and homeowners insurance policies than others.
Once a new policy has officially kicked in, the unneeded policy can be cancelled. But those changing insurance companies should be wary of cancelling too early. Doing so could leave them without coverage, making them liable for any damages that occur during that time.