Combine Insurance Policies for Mega Discounts

This week we’re finally adding our auto policy to our home policy. We waited for our original auto policy to expire to avoid dealing with refunds, overlap, etc. Now it’s finally time to merge. I knew we’d receive a discount, but I didn’t realize just how much until I called our insurance agent.

Multi-Line Insurance Discount

They call it the multi-line discount. By adding two cars to our home policy, we’ll save nearly $600 a year on our combined insurance policies. Once our life insurance applications are approved, the savings will increase again, to around $850. In total, we’ll receive the following discounts:

  • 15% off auto for having a home policy
  • 15% off home for having an auto policy
  • 5% off each car for the life policy
  • 5% off home for the life policy.

If you have additional policies, like boat, RV, or motorcycle insurance, you may also receive additional discounts, but you get the most benefit from the home/auto combo.

Which Policies Don’t Qualify?

Two of our insurance policies don’t qualify us for additional discounts. Our earthquake insurance is through Farmer’s, but it’s funded and operated by the state of California. Farmer’s is merely a pass-through, so no discount there. Our flood insurance is funded and operated by the Federal government, so again no discount even though we purchased the policy through Farmer’s.

Shop for the Best Deal

When we were choosing our homeowners insurance company, we didn’t just get quotes for the home policy. We also got quotes for auto insurance. Even though we wouldn’t be switching for several months, we made the comparison up front so we could choose the one company that would handle all our policies. I also considered the agent who represented the insurance company. We chose Farmer’s because the insurance agent was easily reachable and very helpful. I didn’t have the same experience with the insurance company where we’ve had our auto policies (individually and jointly) for more than a decade.

Ultimately, Farmer’s cost $200 a year more for the combined policies, but we felt more comfortable choosing a company with a proven homeowners insurance track record. Our auto insurance company only recently moved into homeowners insurance and doesn’t offer life insurance at all.

When it comes to life insurance, you should shop around for a reliable company with good 30-year term life insurance prices (less if you have less time until retirement), but consider the multi-line discount before making your final decision about where to apply. For my insurance, I had a cheap policy through AAA, but it could increase annually. Even though the Farmer’s insurance was slightly higher, after the discount it was about the same. Factor in that it can’t increase for 30 years, and it was an excellent deal.

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