Auto insurance can be cheaper if you get it in bulk with other insurance products

Many people see auto insurance as the necessary evil for owning a car. And it really may seem so judging by the current auto insurance rates, everyone’s not very happy with. Insurance companies tend to increase their rates on a regular basis explaining the hikes with different pricing trends. Nevertheless, it doesn’t add confidence to millions of car owners who are looking for way to reduce their insurance rates. Some people even go to extremes and drop auto insurance coverage altogether, risking their financial stability for the sake of saving some money on insurance. But it may come as a surprise to many that you can actually get lower rates by getting more insurance products at the same time. This may sound like lacking any logic, but if you come to think of it and judge the situation from the insurer’s point of view, the mechanism becomes quite obvious.

There are many insurance companies that provide different types of services. These are usually large companies with large customer pools and a presence in several states. Of course, some companies, even the big ones, tend to specialize in particular types of insurance services due to their historical development. Nevertheless, diversity is what the big business is all about these days. And if you have health insurance with a particular company chances are that the same provider offers auto insurance as well. It may seem like nothing special, but it certainly is if you’re looking to optimize your insurance costs.

Most insurance companies tend to reward customers who are using their services extensively. This means that if you buy more insurance policies from the same provider then you will get a very good discount. The amount of the discount and the conditions will vary from provider to provider, but that’s a general rule for all big companies that are happy about having loyal customers.

Some of you may say that the quotes offered by their current providers aren’t the most competitive out there, and it’s nothing strange. If you have a good home insurance policy with a particular provider this doesn’t necessarily imply that their auto insurance will be the most affordable on the market. In fact, you are likely to see more competitive offers from other companies and it will be very tempting to buy a policy from a different company. But don’t make hasty decisions before you actually learn what discounts the provider is ready to offer for having more insurance products with them.

The rule of thumb with such discounts is the more policies you have with the same provider the better. So if your insurance company offers health insurance, life insurance, auto insurance, home insurance, and other products at the same time, it may be more feasible to have all the policies with them. Besides, it is usually much easier in terms of paperwork and bills. Instead of paying several rates at different periods of time you get all your premiums at the same time, which is rather convenient. So make sure to ask your insurance provider what incentives they offer to customers who get multiple policies from them. They will surely answer your questions with utmost enthusiasm.

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