A:

Some companies offer a "multi-policy" discount to people who buy auto and home insurance together, in which case it may save you a lot of money to get your house and car insurance through the same provider.

While a discount can be a great incentive, it's important to make sure you're buying the policies for the right reasons. If price is your dominant motive, there may be more competitively priced policies at different companies - which may effectively cancel out any benefit of a multi-policy discount. (To learn more about choosing your insurance provider, read our related articles Shopping For Car Insurance and 12 Car Insurance Cost-Cutters.)

It's also important to make sure you're comfortable with the company in the event you actually need to file a claim. Filing a homeowner or auto claim can be stressful, and if you do need to file a claim you want to make sure the company is prompt, helpful and fair. Using the cheapest insurance agency may not always provide you with this type of speedy and efficient reply.

Filing a claim can mean higher insurance costs - even if it wasn't your fault. To learn more, read Will Filing An Insurance Claim Raise Your Rates?

This question was answered by Barry Higgins.

RELATED FAQS

  1. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ...
  2. Does Medicare provide assistance for patients unable to perform Activities of Daily ...

    Find out how Medicare provides some benefits, both direct and indirect, for those who are unable to perform some of the activities ...
  3. What are examples of the largest companies in the insurance sector?

    Read about some of the largest and most influential companies in the insurance sector, a list that includes Berkshire Hathaway ...
  4. What impact have terrorist attacks had on the insurance industry?

    Learn about the impact of terrorist attacks on the insurance industry and how the 9/11 terrorist attack led to important ...
RELATED TERMS
  1. COPE Insurance

    A set of risks that property insurance underwriters review when ...
  2. Anti-Stacking Provisions

    An insurance policy provision which prevents more than one limit ...
  3. Automatic Premium Loan

    An insurance policy provision that allows the insurer to deduct ...
  4. Class 2 Insurance

    Insurance that covers individuals that are not specifically named ...
  5. Bingo Card Program

    A motor vehicle registration method that required the operator ...
  6. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...

You May Also Like

Related Articles
  1. Stock Analysis

    How UnitedHealth Group Makes its Money

  2. Economics

    How Big Data Has Changed Healthcare

  3. Stock Analysis

    3 Things That Could Hold Intuitive Surgical ...

  4. Entrepreneurship

    Want To Sell Life Insurance? Read This ...

  5. Investing News

    How Google's Self-Driving Car Will Change ...

Trading Center