My Insurance Broker
Aug 7th, 2016 at 04:11 pm • Richmond Hill, ON
Why does having multiple lines of business (policies) with the same insurance company affect my insurance premium?
Insurance companies reward you for having multiple lines of business with them. This is beneficial for both you and the insurance companies as it spreads the risk of financial loss across multiple factors, indicates to the insurance company that you are concerned about your protecting yourself and your loved ones from financial risks, and provides you with savings through reduced aggregate insurance premiums. Insurance companies are concerned about protecting themselves from significant insurance loss payouts, and when you purchase multiple policies this can be seen as an indicator of responsible behaviour, suggesting that you are less likely to incur losses.
Special Note: In many instances, if you are considered a high risk driver, insurance companies may require you to carry multiple lines (types of insurance) of insurance, such as combining your home and auto insurance policies, as it helps spread risk across multiple policies.
How much can I save if I have multiple lines of business (policies) with the same insurance company?
Having multiple lines of business insured with the same company can affect your insurance premium, and you may be eligible to save between 10-15% per additional policy. This means that the more lines of business you have with an insurance company the more room for savings. For example, you can save by combining all types of insurance products such as home & auto, life, motorcycle, recreational, and dental.