These days, many consumers are fully aware of the amount of money they pay for all their different types of insurance coverage, and are therefore always on the lookout for ways in which they can reduce the impact of these potential issues. One method people now use to achieve this goal is by bundling their coverage across both home and auto insurance with the same carrier, because in doing so, they can see significant discounts. Due to consumers’ growing preference for these types of plan packages, it may be wise for insurance agents to highlight the savings such options can provide.
The average amount of savings consumers nationwide see on the bundling of auto and home insurance coverage is about $270 on their annual costs, constituting a discount of about 15 percent, according to a new survey of the market from InsuranceQuotes.com. However, there are significant differences between what residents of some states will pay versus others.
For example, the largest average annual savings come in Louisiana, where residents who bundle their plans can save as much as $505 on average, the report said. This was the only state to breach the $500 mark, as Oklahoma ($468), Texas ($435), Mississippi ($422), and Missouri ($366) rounded out the top five. Meanwhile, the state with the smallest average discount was Hawaii, at just $116. None of the bottom five (Florida, North Carolina, Vermont, or Idaho) saw average cost reductions of more than $190.
“Consolidating your insurance policies with a single company is one of the easiest ways to save money,” said Laura Adams, senior analyst for insuranceQuotes.com. “The differences between states can be attributed to competitive and regulatory factors.”
What about other types of coverage?
Of course, it’s not only homeowners who can save in this regard, the report said. The average savings for consumers who bundle auto and condo insurance was 11 percent, and those who put car and renter’s insurance together typically reduced their premiums by 8 percent.
Agents may be wise to take advantage of the new preference for saving money on all types of coverage in the market by highlighting these options to their clients. This may not only serve to generate more business, but also engender greater customer satisfaction and loyalty from consumers who might have otherwise been tempted to begin shopping around a little bit.