Question : Why does the premium drop when you add home insurance to an car insurance?
When one has car insurance alone, insurance companies state that if one is to also get home insurance from the same company, the sum of the two insurances will be less than the original car insurance alone... Why should insurance companies take less premium for providing more service?
- asked by Katelyn B
All Answers:
Answer #1
that's loyality discount to get more businessfrom same number of clients. It is a verycompetitive world out there.
- answered by ashok
Answer #2
Insurance company would like insured to stay withthe company as long as possible to service theirinsurance needs. It's been proven that in insuredhave more than one kind of insurance with ancompany the insured unlikely to change. Butusually combine two insurance should not be lessthan orginal car insurance alone. You might wantto double check with your insurance agent. Thereshould be discount like 10% to 20% of the totalpremium of two insurance policies depend on thestate and the insurance company! Hope this willhelp!
- answered by Nancy L
Answer #3
its called a multi policy discount. they givethis discount to people as an incentive to getthem to let that 1 company write all lines ofbusiness.
- answered by Queen B
Answer #4
Because when they write both your car and yourhouse insurance, they're more likely to retainyour business - renew it, year after year. Hencethe discount.
- answered by mbrcatz17
Answer #5
The sum of the two will not be less than the autocoverage alone; however, they may offer adiscount that makes the total less than the sum ofboth policies purchased separately.
- answered by newjerseyguy
Answer #6
It sounds like a not easy cracking nut,have a lookhere,you should find something useful foryou.
http://car-insurance.online-tips.info/massachusetts-car-insurance-quote.html
- answered by MELISSA G
Answer #7
It's a "package discount" - an incentive to writeBOTH lines of business.I've had good resultshere...
http://insurance.deal4-you.comGood Luck.
- answered by Alexa B
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measure and fulfill your financial needs
