For most people insurance is a necessity. Whether for the car, the home, your health or even your life, insurance is a monthly expense that is non-negotiable in most cases. The average person might see hundreds of ad each week on the television, and hear just as many on the radio. Each insurance company wants to have as many customers as possible, and often tries to do that by offering discounts on bundling policies. Essentially, this means that the customer will receive a reduced rate if they get their home, care, life, health and even car insurance all from one business. While this is a great idea in theory, it is important to make sure that a multiple insurance policy discount is actually saving you money.
The only way to tell if you can save money with a multiple insurance policy discount is by asking for quotes from a wide range of insurance companies. Be sure to ask what the individual rates are for car, home and health insurance, and then ask for the overall price if you bundle the insurance together. Get a few quotes from a range of companies, so you have plenty to compare later on.
Compare The Rates for Each Company
Sit down and take a look at the rates provided by one individual company. Add up what your monthly costs would be if you paid for their car insurance policy, their home insurance policy and their health insurance policy separately. Then, compare that to the price given for bundling those policies together. Make sure that there is a significant difference between the prices to ensure that you are really saving money. Some companies will offer a percentage reduction for each policy you add, which is a great way to know that you are truly saving money.
Paying for Convenience
Sometimes, it will be more expensive to have all your policies bundled with one insurance company. Many people don’t mind the slight increase in price thanks to the convenience of having all policies with one company, or even one bill at the end of the month. However, if price is your main concern then be sure to stick with the cheapest policies, no matter what. This might mean that you get each insurance policy from a separate company.
Some married couples or extended family can actually save money by combining their insurance plans. If you have multiple cars on separate insurance policies, ask each company if they can offer you a discount by bringing your spouse into the plan. Many companies consider this to qualify for a multiple insurance policy discount, which can further save you money.
While many advertising ploys are used to encourage consumers to bundle their insurance policies for their cars, home and health, it is not always the best way to save money. Ask for plenty of quotes and compare the deals to make sure that the multiple insurance policy discount will in fact save you money in the long run.
Gina Hamilton is an insurance consultant and content contributor for Kanetix. Check their site at www.kanetix.ca/auto-insurance-quotes for rate comparisons of all the most popular companies, such as York car insurance.