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Benefits of getting multiple policies from the same insurer
Insurance companies, being for-profit organizations by their nature, car certainly be called greedy, but in a good way. After all, when it comes to profit you just can't have enough of it, you always want more. That's exactly why all insurance companies want to sell everything they got to anyone willing to buy. And since the majority of large auto insurance providers also specialize in other types of insurance such as health, life, home, business and others, you can will get bombed by offers as soon as the insurer finds out that you have something uncovered. But as annoying and greedy as it may feel, you can actually use the situation to your benefit and get cheaper auto insurance without compromising anything. All it takes is actually considering the multiple offers and buying several insurance policies from the same company.
Actually, it's all very simple to the point where not realizing the fact seems embarrassing. The more time you spend in the car the higher is the risk of having an accident, simple as that. Sure, you can argue that better drivers spend years without any accidents while occasional drivers may have bumps and crashes every month. But these are statistical extremes we're talking about that don't change the general picture a bit. And the picture is very clear: the likelihood of having an accident is directly proportional to the time spent driving. Whether you like it or not, it's a statistical fact that is confirmed by tons of observations and simple common sense. That's why insurance companies ask you to indicate your yearly mileage when offering quotes, since this amount will have an impact on the rates you'll be charged with. If the amount falls into the statistical average there won't be any significant effect on the quote as there are other more important factors in force. However, if the amount is significantly higher or lower than the average you will have your quote altered depending on the extreme the amount leans to. And you certainly want it to be lower, since it's a very effective way of reducing auto insurance rates.
That's right, the majority of large insurers that work in various fields will be happy to have you as their customer with more than just one policy. In fact they'll be so happy that they will typically offer you a substantial discount on any of their products if not all of them. It's all very simple: the insurer gets more money from you through various premiums while the overall risk is spread throughout the various insurance policies. After all, it's very unlikely that you will ever need home, auto and health insurance coverage all at the same time, right? There's usually one insurance type involved, while you keep paying all the premiums. This way the insurer gets more money and can also save some paperwork by having a universal account for all the insurance types. That's why getting substantial discounts by purchasing several policies from the same provider is actually very logic and beneficial for both the customer and the insurer.
Of course, some of you will argue that it won't be as affordable as shopping around for each policy separately, and in some cases this may actually be true. But let's think about the potential of comparison shopping for a moment. Since all insurance types are subject to considerable rate fluctuations you can get a particular policy for a really affordable price. However, this doesn't necessarily mean that you'll be able to get lower rates for all the insurance types you are looking forward to buy. One might be more affordable while the other will deliver average rates - that's how it usually goes. Not to mention that you'll have to spend a lot of time comparing quotes for each policy type. And on the other hand you have instantaneous savings that can be obtained the moment you get all the policies from the same insurer. All the policies will have a discount and you won't have to spend too much time shopping around for each policy type. Sounds very reasonable and attractive, doesn't it?
Of course, no one's talking you out of comparison shopping, it's a very important aspect of buying insurance. In fact, you should do it for every insurance type even if there's an overall discount offered. This will give you an idea whether the discount is generous enough and whether it outweighs the option of buying separate policies from different providers. After all, insurance companies sure love getting high profits and this can make them a bit greedy when it comes to discounts. So if you actually have the possibility of getting auto, health, home, life and business insurance from the same insurer it never hurts to shop around a bit or negotiate an even better discount to sweeten the deal.