Many insurance carriers offer significant discounts for customers who place multiple types of insurance with the same company, referred to as “multi-line discounts” or “bundling.”
A new survey by Quadrant Information Services said annual savings may amount to more than $300. Savings varied by state, as well as the type of policies being bundled, but the results were clear: on average, consumers in all states were able to save money by bundling.
The best results came from bundling auto and homeowners insurance with the same provider. On average, this saved consumers $322 nationwide, for a total savings of 16% of annual premiums for these lines.
Insurance carriers offer these discounts for a variety of reasons; it’s expensive for insurers to attract a new customer, and carriers are constantly trying to compete for business. Adding an insurance line to an existing customer is much less costly, so it’s possible for carriers to pass part of those savings to the customer.
Bundling multiple insurance policies with the same carrier can also simplify your financial life. Not only can you save money, but you also have fewer bills and payments to keep track of.