Why are Auto Insurance Premiums Lower if I Buy Home Insurance from the Same Company

Buying auto insurance and homeowners’ or tenants’ insurance coverage from the same company is a great way for consumers to keep their coverage costs down. Insurance providers are interested in writing up new business for their customers, and they often offer a multi-policy discount to their customers.

When looking for the best prices on auto insurance coverage, consumers should consider getting quotes from companies they already have a relationship with. When asking for pricing from an insurance company, be sure ask about price breaks for having more than one insurance policy in place. The company should provide a discount on both policies in that instance.

Available Discounts on Auto Insurance Coverage

There are other types of discounts available on auto insurance policies. Consumers should make a point of asking for a list of discounts that a company offers before choosing a provider. It’s possible for a car insurance buyer to qualify for more than one discount to get a better price on his or her coverage.

Since auto insurance companies evaluate risk when setting rates for their policyholders, one way to qualify for the best rates on a policy is to remain accident and moving violation-free. Insurance companies offer preferred rates to buyers who they have determined present a relatively low risk to insure. A person who can demonstrate that he or she has been driving for a number of years and has been able to maintain a clean driving record will likely be able to qualify for a good driver discount. (Some insurance companies will even forgive a first at-fault accident without increasing premium rates.)

Insurance companies also offer better pricing to customers who limit their time spent on the road. Low annual mileage means a lower risk of being involved in an accident and making a claim against the policy. A car insurance buyer who is leaving his or her vehicle at home and using public transit for his or her daily commute to and from work or is semi-retired or retired and not using the vehicle as much may be able to get a discount because of his or her driving profile.

Buying an auto insurance policy online can also help a buyer get preferred pricing on the cost of his or her policy. When consumers arrange for coverage electronically, the insurance company has lower administration costs and avoids having to pay out a commission to an agent. Some of these savings are then passed on to the policyholder in the form of lower premium rates.

Students can save on the cost of their car insurance coverage by getting good grades. A young person who is attending school on a full-time basis who maintains a “B” average (or higher) can save on their auto insurance coverage costs. Insurance companies consider that a person who is responsible enough about his or her studies to get good grades will also behave that way behind the wheel.

Buying auto and home insurance policies from the same company can help consumers save on both of them. Asking about other discounts can help buyers save even more.


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