Everyone loves a good shortcut. When you think of cutting corners, though, your insurance probably does not come to mind. That is because having the right coverage can mean the difference between protecting your assets and losing everything. However, there is one product offered by insurance companies that some Arizona drivers are using to save time and money. It’s called Package Insurance Policies, and if you own a home and vehicle, you probably qualify. Continue reading to learn more about package insurance and how it could be the key to unlocking an insurance solution that better fits your needs.
Here at Harnish Insurance Group, our job is to ensure you never pay more for quality car and home insurance than you have to. That is why we are diligent in our search to find each customer an insurance policy that provides the most complete coverage at a competitive rate. One thing we know after nearly three decades of serving the Mesa, Scottsdale and greater Phoenix area is that insurance companies enjoy giving discounts when it helps their bottom line.
According to the Insurance Information Institute, the average homeowner in Arizona paid just $691 for homeowners insurance in 2012. Car insurance premiums the same year averaged $781. However, drivers who bundled their coverage under the same insurer could have saved 5 – 15 percent, which could have totaled an average of up to $220. When you combine your home and auto insurance with the same company, you may be rewarded with a generous discount on your premiums.
Between 2009 and 2013, approximately 7 percent of homeowners filed a claim. Of them, 97 percent were related to wind, hail, water damage, and other types of property damage. Just 3 percent were due to liability claims. Since property damage claims often involve more than one asset, such as their car and home, some homeowners may be left paying multiple deductibles for the same covered event. With a package insurance policy, there is only one deductible to pay, which means you keep more money in your pocket.
For example, imagine a storm blows through, pounding your car with hail and tearing the shingles off your roof. With individual car and home insurance, you might have to file two separate claims and pay two separate deductibles to have your damages repaired. If you had a package insurance policy, damages for both your house and car could fall under a single claim.
Keep in mind that your home and auto are not the only assets that can be insured under a package policy. Your insurer may also allow you to include coverage for other needs, including small business insurance, investment property insurance, and protection for your RV, ATV or motor home. You may also qualify for elevated liability limits for your umbrella coverage or when traveling abroad. If you do not own a home, ask your agent about including renters or condo insurance on a package policy instead.
Car and Home Insurance Bundle Alternatives
In some cases, it may not make sense to purchase a car and home insurance package policy. However, you can still take advantage of discounts for carrying multiple lines of coverage. Simply purchasing your home and auto insurance from the same carrier could make you eligible for a discount on premiums – even if the policies are kept separate. Also known as bundling, nearly all insurance companies offer some variation of this discount.