How to Save Up to 25% by Combining Car and Home Insurance

Published: February 19, 2018

Updated: May 15, 2018

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Although it seems less important to spend on something you may not use in the end, we all pay high premiums on home and auto insurance. Many individuals will not pay for insurance policy if they had an option, but they do not due to the following reasons:

  1. It is required by law for every car driver to insure their car. Mortgage firms also require home owners to do the same.
  2. Insurance is recommended for anybody who cannot bear the financial consequences of lacking insurance cover in the event of an accident
  3. It feels more comfortable to know that you have an insurance coverage.

Many people do not know that they will be saving lots of money each year by using some simple tips.

Bundle your policies: Insurance firms will give you discount of up to 20% if you decide to insure both your car and your house with the same company. If you add a second car, your premium will drop by another 15%. This will save you from worrying about different policies with different conditions. It also improves a client-business relationship which can be very helpful when you need assistance with a major claim.

Home insurance is used to protect against theft, natural occurrences such as common accidents, fires, flood etc. Guests are also insured in most house insurances. For instance, if you have a guest in your house and her handbag was robbed while in your house, the insurance firm will pay for her handbag. Normally, house insurance does not usually include expensive items such as jewelry; such items need a separate insurance. Earthquake or flood insurance is also not usually included, therefore if you are in a place where this occurs frequently then it will be good that you get extra coverage.

There are different ways to save on home insurance policies. These include:

  1. Low value house: The lesser the value of your house, the lesser the probability that your house will be burgled.
  2. Use Bundling: Take an insurance coverage for both your house and car with the same insurance company.
  3. Installing security features: Fire and burglar detectors will greatly reduce the premium you will be charged as there will be less possibility that your house will be burnt down or robbed. Windows and doors with security fittings will also help you lower your insurance premium.
  4. Living in a vicinity with low crime rate: Some areas obviously have more crime rate than others and this will have a huge impact on your insurance.
  5. Living in compounds: Compounds have a greater tendency of having more security features than free standard houses.

Car insurance is also for a similar purpose, it insures your vehicle against accidents, thefts, etc.

There are lots of different ways to save money on car insurance.

  • Gather as much quotes as possible: This is the first step that many people often ignore; they only go with one or two quotes. Get a minimum of 5 quotes; the internet is an awesome way of finding these quotes.
  • Use Bundling: Make sure your car is insured by the same insurer that insures your house.
  • Raise your deductible: Your premium could be lowered to about 50% when you raise your deductible from $250 to $1000.
  • Request for discounts: The best way to get discounts is to ask for them. Also ask for any discounts that may come up in the future.
  • If your car is not too expensive, make sure you drop the collision rate.