Combining Insurance Policies: Does it Really Reduce Your Costs?
The short answer to the title’s question is yes, it does, but how you secure a combined policy with all of your insurance coverage included under one umbrella can also affect the overall cost and savings. In this case, it’s better to work with an expert than go out on your own. Yes, you can call individual carriers or use online comparison tools, but these will not provide discounts of which you might not be aware.
Enlisting Professional Help Is Your Best Path to Savings
Enlisting the help of a local insurance agency is your best path toward saving money on all of your insurance needs, including life, dental, health, and vision coverage if you don’t have this as a benefit through your employer. Naturally, more savings means more money in your pocket, which helps build your liquid assets. Cash is a liquid asset, and you can use your savings to increase your wealth through other financial vehicles, such as investments or annuities, the latter of which your insurance agent might be able to procure for you as well.
Go Local, Not National
You noticed the reference to an insurance agency above was “local insurance agency,” and there is a reason why. You insurance needs – all of them – are based locally. Where you live affects directly how you should be insured. You could look into a national insurance agency, or company for that matter, but those working for you will not have the knowledge a local agent will have. Consequently, your coverage and any related savings will suffer. The agent will lack knowledge specific to your area that will limit his or her ability to fine-tune your package.
Take into account your auto insurance, for example. The rules of the road and any mandated coverage vary from state to state. You need someone familiar with the local driving rules and the minimum insurance required by your state in order to fetch the maximum savings on your policy. The same holds true for your homeowner’s insurance. Hiring an agent in New York City will not help you with earthquake insurance in Los Angeles, nor will hiring an agent in Los Angeles help you with flood insurance for your Long Island shorefront home.
It Makes Sense
Local means a full understanding of everything you will need to cover your business, home and family, but that’s not the only reason why an insurance agent will save you more money than striking out on your own search for the perfect combined policy. Another reason why you should enlist expert help is because these people have many contacts who want to sell you the perfect coverage. They want all of your business, not just your auto or home policy. They want to insure you from top to bottom, so they’ll be eager to make a deal.
The agent is also eager for your business, as he or she is vested in bringing clients to the insurance companies. This means, he or she will listen to your needs, your budget, and come up with a money-saving policy with one carrier, which segues nicely to the beginning of this article. A combined policy saves you money and adds more wealth to your pocket.