Why Do I Have To Package My Home & Auto Insurance
All I'm trying to do is get the best rate on my homeowners insurance. I call an agent, get a home quote, get excited, and then get let down. Why do insurance companies want my auto policy if they get my homeowners policy? They don't care about my homeowners policy when I call for an auto quote...?
True, they don't care about your homeowners policy, at least most don't. Well, they care about their customers, but they also need to make a profit. Insurance companies rarely make a profit selling home insurance. Auto is usually where the money is.
Insurance companies have studied at great lengths who it is that makes claims and what type customers are profitable. They've determined customers who keep their home and auto with separate companies have a higher tendency to make claims.
I know, it makes no sense, but numbers don't lie. However, that is one reason we have a difficult time getting a homeowners policy without packaging our auto.
There are pros and cons to both. Some companies offer one deductible - a hail storm hits your house and both cars - one deductible. Tornado hits both - one deductible, etc.
There's hope. There are insurance companies that will take just your homeowners policy. Plenty of them. Good, reputable companies. However, we must dig to find them. Agents don't want to write/sell just one policy. They want both, your home and auto, and sometimes life insurance.
Your phone call should go something like this: "I'm looking to move/buy home insurance. I don't want to move my auto so, please, don't quote me with an auto credit and don't quote me with a company that requires it. Also, I would like to know if the quote you're giving me is replacement cost or cash value."
Sometimes it's better to package, sometimes it's not.
We have one of those WE'LL TAKE JUST THE HOME companies.