You can get considerable discounts if you get your auto insurance policy from the same insurance company that provides your other insurance policies. It is called a multi-policy discount.

However, the total money you may save may still become insignicant if compared with savings you will make by getting your policies from several insurance companies. Let me give more light on this…

We’ll assume that a certain individua gets the following rates from 3 different insurance companies…

Insurer A…

Auto insurance: $2,487

Home insurance: $1,400

Health insurance: $2,320

Insurer B…

Auto insurance: $1,472

Home insurance: $2,120

Health insurance: $2,724

Insurer C…

Auto insurance: $3,500

Home insurance: $2,080

Health insurance: $1,640

You can see that Insurer B gives him the cheapest rate for auto insurance but does not offer him the most affordable rates for health or home insurance..

So here’s what he would get with a ten percent discount if he goes ahead to still get the three policies from Insurer B…

$1,472 + $2,120 + $2,72 = $6,316

$6316 - (10% of $6316) = $5,684.40

On the other hand, he would spend the following on insurance as a whole if he buys from the insurance company that offers him the best rate for each policy…

$1,400 + $1,472 + $1,640 = $4,512

You can see that even though getting health and home insurance from the auto insurance provider may result in multi-policy discounts, he’d be better off getting each policy from different insurers.

In this instance he’ll save $1,172.40!

This is great; but how do you determine which yield more savings bearing in mind that another individual might actually be better served by a multi-policy discount?

The answer is simple…

Get quotes for different insurance policies from five or more reputable quotes sites. Pick the most affordable quotes obtained for each insurance policy and then just compare their sum with what you will pay with a multi-policy discount and you’d know which is more beneficial in your case.

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