Bundling your auto and home insurance with the same company could save you almost 25 percent.
Often referred to as a multipolicy discount, using the same insurance company for both your home and auto can net you significant savings. For the second year in a row, insuranceQuotes.com asked Quadrant Information Services to determine the average economic impact of bundling insurance finding that savings vary from state to state. To determine how insurance costs can be cut, they used a hypothetical 45-year-old married woman with a bachelor’s degree, excellent credit score and no lapse in coverage. The study then compared the average premium discount for three types of bundling in all 50 states plus Washington, D.C.
The U.S. average for savings when it comes to bundling came in at 15.97 percent with Georgia residents seeing an average 22-percent discount. Florida homeowners and drivers however only saw an average premium discount of eight percent. Along with Georgia, the top five states with the greatest average premium discount include Oklahoma (22 percent), Kansas (22 percent), Arkansas (22 percent) and Nebraska (21 percent).
The lowest of the bunch were New Jersey (12 percent), West Virginia (11 percent), Hawaii (11 percent), New York (11 percent) and Florida (8 percent).
“Bundling insurance saves money on processing, administration and selling costs for insurers, so it’s good business sense to encourage customers to do it by sharing some of the savings with them,” says Lehrer. Also, “a customer who bundles two products is almost certainly more likely to buy a third. It’s all a beneficial business model.”
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