When Texans begins shopping for Home Insurance, one of the first questions that an agent will ask is if they can also quote your auto insurance. We admit it. We ask you that too. Everyone is trained to believe that the best rates and the best coverage can only be had it you keep your home and auto insurance together. As a result, a frequent question is does it really matter? The answer depends upon you and your situation.
First and foremost, the companies that offer both home and auto insurance have discovered that their total losses due to claim are generally lower if they can package both lines of coverage together. They also realize that the more types of insurance that you carry with a single company, the longer you are likely to stay as their customer. And for most of the insurance companies, that increases their profitability since there is a cost associated with attracting and placing new business. So therefore, they attempt to attract what they want with the most advantageous pricing possible. And they do this with other kinds of discounts as well.
The reality is that the large home insurance companies in Texas all offer auto insurance as well. As a result, they all offer at least a certain level of discount if you bundle the home and auto together with the same company. The size of the discount is entirely dependent upon the insurance company making the offer. That means that we cannot give you a precise answer on the size of the discount. As a general rule of thumb, the companies that offer the biggest discounts for having a bundle are the companies that allow agents to only sell for them. If you are working with an independent insurance agent, they will have a myriad of companies rather than one. The companies that they work with tend to have a smaller discount as they realize that the agent can create packages out of multiple companies.
This is where what matters to you becomes a personal choice and is not the same for everyone. One reality with this discount is that some companies will actually penalize you if you do not bundle the business together. The way that the home insurance companies do that is to raise a minimum deductible level for Wind & Hail to 2% of the dwelling value or higher! That can be a nightmare claim situation if you don't understand the implications. Beyond that, it becomes the most efficient way for you to be protected. Many of the companies Insurance For Texans works with don't even offer auto insurance. As a result, this conversation can change drastically for us Independent Insurance Agents.
Bottom line is we are here to do what is best for you. Working in a consultative manner allows us to do that for you and your family. If you haven't checked your discounts or coverage in a while, it likely makes sense to see what can be done. Schedule a consultation today!