Nationwide Murfreesboro TN
AmeriAgency – Nationwide Murfreesboro TN
Call AmeriAgency Now At 888-851-5572 To Start Saving Up To 27% On Auto, Home And Business Insurance –
Nationwide Murfreesboro TN
Part I: How Bundling Works
Many consumers, particularly younger ones, do not take advantage of bundling policies. This is often because they obtain different policies as each need arises, rather than all at once. For example, young people signing up for their first car insurance policy typically go to their parents’ agent and just stick with that coverage for years. Later in life, when they buy their first homes, they frequently turn to a different insurer closer to their new residence. For the majority of consumers, this is a mistake that will cost them. Need Nationwide in Nashville?
Call AmeriAgency Now At 888-851-5572 To Start Saving Up To 27% On Auto, Home And Business Insurance –
Nationwide Murfreesboro TN
Insurance companies prefer to provide each customer with more than one policy. Conventional wisdom suggests it is at least six times more expensive to get a new customer than it is to retain an existing one. To mitigate turnover and generate revenue, insurers have a strong incentive to sell a home or life insurance policy to their car insurance customers or vice versa.
Likewise, each time a new policy is written, the customer must be assessed in a process known as underwriting; the individual’s qualities, like income, occupation, place of residence, credit history, and driving record are entered into a central database and analyzed. Whether it is for car, life, renters or homeowners insurance, underwriting generally looks at the same factors, and the analysis is often the same.
Call AmeriAgency Now At 888-851-5572 To Start Saving Up To 27% On Auto, Home And Business Insurance
Nationwide Murfreesboro TN
So, if an insurer has already put a client through the underwriting process for one policy, it stands to reason that it will be cheaper to analyze him for another policy, as opposed to a brand new person who has yet to be assessed. This cost savings are just another reason insurers offer incentives for bundling to their existing customers.
These incentives are not insignificant. Discounts on each premium, such as for homeowners (or renters), car and life, can be as much as 30%. The best discounts are enjoyed by customers who choose at least three lines of insurance, while those with less coverage, such as those who do not purchase life insurance, receive less of a discount.
