Most people tend to purchase several types of insurance at different insurance company. For example, I bought life insurance from company A, car insurance from company B and homeowners insurance from carrier C. The reason is price. Insurance companies give different quote and after comparing, I end up buying several insurances from different carriers. Paying bills to separate insurance carriers every month is exhausting and complicated. If the premiums combined, I possibly have higher premiums than it should be. Maybe bundling my insurances can save money after all.
Bundling Benefit
A strategy that many of big insurance companies do to attract consumer is making their insurance rates price attractive. They combine major insurance type with special price so their customer do not have to waste time and energy to search insurance from another company. It is not only an offer to benefit their customer but also make their customer stay loyal with the insurance company. Giving best deal is one of their strategy to attract potential segment who need to insure all three main lines of insurance.
Many companies offer "multiple line discounts" for their customers who need more than one insurance. They will offer cheaper rate to insure your car and house, for example. Even cheaper than you insured each one of them separately at different companies. The companies will give you "extra discount" if you insured second car or taking their life insurance products.
How Much I will Pay If I Purchase in Bundle?
Let's say I take auto, home and life insurance package, I will pay between $3,000 - $5,000 or more, per year. However, the rates will be vary depends on your residents, vehicle and house value, and so on.
People who have life insurance usually do not switch insurance carriers due to difficulty of changing policies. The difficulty factors are medical issues, age, the need for further medical exams and another factors. Therefore, people rarely change their life insurance company. Big insurance companies consider life insurance as their critical product. The reason companies give discounts is companies find it expensive to underwriting new customers. It does not mean that companies do not want new customer, but companies prefer to have customers with multiple lines of insurance and keep their policies for years. Rather than having multiple customers with single line of insurance but in the end the customers will left for another cheaper carriers. It can diversifies the company's risk as well, they have more money to work with and can justify your premiums.