Buying insurance is completely different than buying your home or car. Homes and cars provide you with a service—a home to provide shelter and a vehicle to provide transportation. Insurance, however, provides a promise that if anything happens to your home or your car you will be protected from the financial worries that come when disaster strikes.
Both your home and your car are expensive. They are expensive to buy, expensive to maintain, and expensive to repair. They are investments, and as such, these investments need to be protected. Your investments need to be protected, and insurance is the means by which you can get that protection.
On the off chance that disaster does come an accident, a fire, or the weather could potentially destroy your investment and leave you holding the proverbial bag unless you have insurance. Insurance is your best tool to ensure that your home is rebuilt, your car is repaired, and you are not left bankrupt.
The best home and auto insurance will cover whatever life throws your way and keep the promise of protection that they made. Insurance is not something you want to overlook when you are thinking about purchasing a home or a new car. In fact, insurance should be among the first things you look at when you considering purchasing either of these. The benefits of insurance far outweigh the cost of purchasing the policy.
A homeowner’s insurance policy will cover rebuilding your home if a tornado carries it away or a fire burns it down. It will also pay to replace all your belongings which can be a huge expense, even if you feel like you don’t really own that much stuff. It adds up very quickly. An auto insurance policy does the same for your car, covering the replacement costs if your vehicle is destroyed in a wreck. They both also provide coverage in case of injury to yourself or others. If you purchased your home or your car with help from a lender, then the lender will usually require insurance before they will finalize the loan.
Conveniently, the best home and auto insurance companies offer savings for people who purchase both kinds of insurance through their company. Many offer discounts of up to 25% for customers who “bundle” their insurance policies. In fact, the more kinds of insurance that you choose to carry through a company, the greater the savings you can receive. Multiple vehicle policies, renter’s insurance, and even life insurance can be bundled to save you money.
Although saving money on your insurance policies is a great incentive to bundle, there are other benefits to purchasing all your policies from one company. By purchasing everything in one place, you will gain familiarity with your insurance agent and receive a more personalized experience in case you ever need to make a claim or adjust your coverage.
Another benefit is that if you do make a claim, you may only have to pay one deductible on that claim, instead of dealing with multiple companies that would require a separate deductible payment. For example, a storm damages your home and your car: without bundling, you will have to pay a deductible for repairs to your home and a separate deductible for the repairs to your car. You need to be careful with bundling, however, while cutting costs on your monthly insurance payments, you need to be sure that your coverage is not compromised in any way. That coverage is a company’s promise to you that your financial security will be protected.