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.

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