Multi-Policy Discount -- Why You Might Not Want It
Buying an auto insurance policy from the same insurer who provides your other insurance policies will get you a discount on all insurance policies. This is called a multi-policy discount.
That said, it may not serve your best interest to do this as you might gain more if you buy each of your policies from different insurance companies. I'll shed more light on this...
We'll assume that a certain profile gets 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 offers him the lowest quote for auto insurance but doesn't give him the best quotes for health or home insurance..
So, even if this insurer offers him a 10 percent multi-policy discount the sum spent on insurance would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (ten percent of $6316) = $5,684.40
But look at what he would spend if he buys each policy from the the insurance company with the lowest quote for each policy...
$1,400 + $1,472 + $1,640 = $4,512
Therefore 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 several insurance companies.
$1,172.40 is definitely not an amount you should throw away and that's what he would have lost if he opted for a multi-policy discount.
You might be wondering on how to know whether it is preferable for you to ignore a multi-policy discount or go for it.
So here's how to discover...
Obtain quotes for each policy from different reputable quotes sites. Pick the lowest quotes obtained for each insurance policy and then just compare their total with the amount you'll pay with a multi-policy discount and you'd know which is better for you. - 2368
That said, it may not serve your best interest to do this as you might gain more if you buy each of your policies from different insurance companies. I'll shed more light on this...
We'll assume that a certain profile gets 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 offers him the lowest quote for auto insurance but doesn't give him the best quotes for health or home insurance..
So, even if this insurer offers him a 10 percent multi-policy discount the sum spent on insurance would be...
$1,472 + $2,120 + $2,72 = $6,316
$6316 - (ten percent of $6316) = $5,684.40
But look at what he would spend if he buys each policy from the the insurance company with the lowest quote for each policy...
$1,400 + $1,472 + $1,640 = $4,512
Therefore 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 several insurance companies.
$1,172.40 is definitely not an amount you should throw away and that's what he would have lost if he opted for a multi-policy discount.
You might be wondering on how to know whether it is preferable for you to ignore a multi-policy discount or go for it.
So here's how to discover...
Obtain quotes for each policy from different reputable quotes sites. Pick the lowest quotes obtained for each insurance policy and then just compare their total with the amount you'll pay with a multi-policy discount and you'd know which is better for you. - 2368
About the Author:
Start saving a lot here: Affordable Auto Insurance and Discount Auto Insurance. Chimezirim Odimba writes on insurance.
posted by Frank Potter at 1:13 AM
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