The Benefits of Bundling
Many of the big companies price their rates to attract a particular segment of the market. They usually price their insurance to attract homeowners who need to insure not only their cars, but also their homes and their lives (and other things). Many other companies can beat them on price if it’s left to a head-to-head price check on a single line of insurance (such as auto or home), but these big companies want customers who will stay with them for years instead of shopping around for a better deal . To accomplish this, companies give the best deal to clients who will use their company to insure all three main lines of insurance Auto, Home and Life Insurance, as people who buy one type of insurance usually have additional items that need insuring and end up paying much more in total annual premiums than the single-line customer who only insure a car or a house.

Companies offer “multiline discounts” to attract customers who will need more than one type of policy These companies offer a cheaper rate to insure both your house and car than if you insured each one separately with different companies. The same goes if you add a second car or a life policy – the discounts keep adding up.

How Much Do You Actually Save?
When combining auto, home and life insurance, it wouldn’t be unusual for many families to spend between $3,000, 5,000 or more per year.

What’s the Catch?
For just one line of insurance, most large multiple line companies aren’t  price competitive.  By combining your policies the companies benefit by getting additional total premiums. In other words, they have more of your money to work with and therefore can justify charging you less.

As for life insurance, people who have a life policy are much less likely to switch carriers. because of the difficulty of changing policies. This difficulty is due to medical issues, age and the possible need for further medical exams, so people usually keep their life policies in place. For this reason, many large companies emphasize to their sales teams that life insurance sales are a critical product.

Companies also want to give discounts in order to retain customers because it is expensive for companies to continually process  a revolving door of new customers. Due to expense associated with customer turnover, companies prefer to have customers who carry multiple lines of insurance and keep these policies in place for years. bringing all of the policies from a particular household diversifies the company’s risk.

The Bottom Line
Combining all of your policies with one company can save you money.  It’s also important to remember, that when one company is handling all of your policies, that’s less time that you must spend sorting through and paying each policy. And as they say: time is money.https://www.easterninsuranceinc.com