Why Does The Insurance Premium Drop When You Add Home Insurance to Your Auto Insurance?

Insurance companies value customer loyalty. One of the most visible ways they recognize their loyal customers is by offering discounts. Every state in the country requires that drivers have at least the minimum required car insurance.

Likewise, if you own a home, especially if you got a mortgage to help you make that purchase, the lender will require that you have homeowners insurance.

Smart insurance companies capitalize on these requirements by offering you a “bundle discount.” As a consumer, that means saving money. If you have an auto insurance policy with your insurer, and you purchase a home and opt to purchase your home insurance from the same insurer, they want to keep you as a customer, because the more policies you purchase from that company, the better it is for them. So they give you a discount, and you see that discount when your car insurance premiums are lower than they were before you added the homeowner’s insurance.

It isn’t just that you get a discount on your car insurance. By bundling your policies together, you may be able to make payments on both premiums at the same time, and not have to make payments for different premiums on different dates to different companies.

If you’re looking for deal that will give you a bundle discount on any of your insurance policies, contact the Stromsoe Insurance Agency to discuss the best options for you.

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