Should I Consider Consolidating My Personal Insurance Policies with One Company?



There may be several reasons to consider having one insurance company provide multiple policies. For most people, the pros of consolidating their policies usually outweigh the cons, but here are some points from both sides.
PROS
Cost Savings
Consumers often find there’s a cost benefit in consolidating their coverage with a single carrier. While the exact number will vary from company to company, it’s very possible for example, to save 30% or more by having your homeowner’s and auto insurance with the same company.

Since an insurance carrier is gaining customer loyalty and reducing their marketing costs they’re usually willing to pass a portion of their savings on to their consumers.

Gaps
Depending on the types of coverage you’ve purchased and your unique situation, certain coverage gaps could be reduced when you consolidate your insurance portfolio. Take purchasing Homeowner’s, Auto Insurance and a Personal Umbrella through the same carrier as an example. If an insured we’re to accidentally back out of their driveway and hit the garage door, many companies now consider that one incident and only one deductible would apply.

Another example, relating to personal liability coverage, would be if you were in a parking lot, exiting your vehicle and accidentally opened your door and hit someone walking by. It might be a question as to whether it would be an auto or homeowners liability claim.

With different companies, each company may try to deny they are the responsible party to pay and start to point fingers at each other. This could leave you with a pending lawsuit and a lack of proper legal representation. If it was a significant injury and the judgment was high enough to
reach the umbrella policy, there could be another party in the finger-pointing contest.

Tailoring
Many carriers have learned to anticipate the common problems associated with coverage gaps. These carriers have created tailored packaged policies with multiple different coverage options. These options interlock, but don’t unnecessarily duplicate coverage or dangerously leave gaps between coverages.

CONS

As with most everything in life, there are cons to consolidation. It’s important that you look at the financial strength of the insurance carrier. If an insurance carrier is poorly rated, then the increased risk of going with an insurer that has questionable financial strength may outweigh any of the cost, gap, and tailoring pros.

Another con is that the insurer may quickly change their hunger for a certain product and leave you having to find replacements for multiple policies. Find a company that has typically stuck it out during bad and good times and avoid companies that have timed the market to make a quick dollar and exit?

In closing, consider the above points and how each could or wouldn’t meet your needs. In most cases, you’ll find that coverage consolidation and the right carrier creates a winning scenario for all parties involved.

With over 23 years experience as a multi-line independent insurance agency, Burke American Best Insurance Agency’s mission is to provide high quality customer service, knowledgeable and caring staff that will treat each customer the way we would like to be treated.  We will be glad to provide you with a fast, free, no-obligation quote and answer any question you may have.  

 Submitted by: Burke American Best Insurance Agency

Contact us: (972) 516-4252

Visit our Website: www.amerbesins.com