Why Is It Important to Bundle Home and Auto Insurance?
Hello to everyone out there!! It’s Chris Cook! Thank you for taking time from your busy day to learn a little about the insurance world and our different coverages! Just a reminder MLL insurance is an independent insurance agency, which means we work with a number of different insurance companies to provide the best coverages needed for each client. For this blog post I wanted to take some time to discuss the importance of keeping your home and auto policies with the same insurance company, and some of the consequences that potentially could happen if each are with different companies.
When I am talking to anyone about home and auto insurance coverage, I will always recommend to them the importance of keeping the policies together with the same insurance company. This is always true whether it’s with me and MLL, or their current policies that I have no control over. I may be talking to someone in a quick conversation, or some I may be talking to that are interested in a competitive proposal. This is one thing the average person may not know, so I always like to explain myself and make that a point to emphasize. Some people just think, hey, I have my home covered with so and so, and I have my vehicles covered with so and so, and just figure they are covered properly. Well, the quick answer from me, hopefully you are covered correctly, and I say this because I just don’t know. There are several reasons to keep all coverages with the same company. Please continue and you will learn as you read along with me.
The first reason is because everyone saves money by “bundling the home and auto”! This is what everyone wants to hear from their insurance agent, right? It’s what everyone hears on the radio and TV all day every day. I use that example because everyone is so familiar with the saying. Well, it’s true. If you keep multiple policies with the same company, to generalize it I always say, “you will save a couple hundred off your home policy, and a couple hundred off your auto policy”. Every situation will vary depending on the company that is most competitive for each person. If you have a renter’s policy and an auto, there may not be that much saving off the renter’s policy. This is because the renter’s policy may only be $100 per year premium in total, but if you own a home, the premium will be higher and you will end up saving more because you are paying more in premium, which produces a larger discount.
The second reason is coverage, I truly believe that if you have both a home and an auto policy with the same company, they will look more favorable on the policy if a loss, or any type of issue occurs. I have had issues in the past such as billing, or a claims with a home or auto policy. The underwriter at the insurance company asks if they have supporting policies, meaning more that one policy with them. This may be an unwritten rule with them, but if there is just a single policy with no support, they have made decisions that have not been in my favor. The claims were always paid out, but they may have asked me to place the coverage with a different carrier after the issue was resolved or set the policy to cancel. I view this idea as having more skin in the game. If a person has both the home and auto together, the company sees this as supporting them more.
The last reason I think it’s best to have the home and auto policies with the same company is more of a broader thought of being able to understand the whole picture of managing the person or family’s risks. I really think each and every policy needs to be with the same agent because of this. If a person has a boat, and a 4-wheeler with one company, a classic car with another company, or another agent, and the agent doesn’t know about these other risks, it makes it a lot harder for us to manage the person or family’s risk and provide the proper coverage. By knowing and seeing the whole package, we are able to provide proper coverage, and a lot of times more coverage for similar, if not less premium. There are just a lot of little coverage options within the home and auto policies that allow us to add and delete different items. I will have to get into more detail in another blog post!!
Thank you again for spending some time with me and my blog. I hope you have a better understanding of why it is important to keep your home and auto policies together with the same company, and the same agent. If you have any questions, please email me at chris@mllins.com, or call the office at 517-351-9117. I would be happy to help in any way possible. #teammllins #bundleyourinsurance