John's Monthly Tips

Save money by combining policies with the same company.

 

You will hear agents tell you that you can save money by combining your policies with the same company. While that is true, it does not mean you will get the lowest rate by combining them with the same company.

Now that I am independent and represent multiple companies, I am seeing first hand that putting all your insurance with the same company does not mean your getting the best value possible.

Every insurance company has what’s called an “appetite guide”. This is how they describe what kind of business they are looking for. For example, a company that sells just auto insurance may have a different appetite than a company that sells auto and home insurance. While your auto insurance needs might fit that company’s appetite, your home policy may not. In that case your not getting the best rate available. If you do not fit the appetite, then higher rates are charged.

If you place your insurance with the company that wants your type of risk, you will get the best rate possible. An independent agent has access to multiple companies, and can find the right fit for you.

I recently quoted a prospect that had their home and auto with one of the big three (Allstate, Farmers & State Farm). They were getting the auto/home discount and were happy with their rates.

I quoted them with MetLife for the auto, and Safeco for the home. They saved $600 a year on the auto, and $400 a year on the home by splitting their insurance to two separate companies. I was also able to give them higher limits and broader coverage. The best part is, they still have one point of contact, me.