Insurance companies Mesa AZ offer bundling — or what they call multipolicy discounts — because they want to maximize their profits and get more of your business. Once they get your business, they want to keep it; retention rates are higher among customers who bundle home and auto insurance or other policies.
Discounts vary from one company to the next and by location, but they generally range from 10% to 20% or more for each policy bundled.
With bundling also come conveniences, like getting one bill for all your insurance premiums and having an agent review all your coverage in one sitting.
There are other advantages, too. If your driving record takes a turn for the worse or you’ve made a high number of auto insurance claims, having all your policies under one roof might protect you from being dropped by your insurance company.
Rising Mesa Auto Insurance Premiums are Killing Home Bundles, J.D. Power Finds
The future of the Arizona home and auto insurance bundle, once a mainstay of property and casualty (P&C) insurance customer retention and lifetime value strategies, has come into question as legions of customers have started to break-up their polices. According to the J.D. Power 2022 U.S. Home Insurance Study,SM released in September, rapidly rising auto insurance premiums are largely to blame for potential defection among bundlers.
“Sky-high auto loss costs and resultant auto premium increases are creating ripple effects throughout the insurance industry and, as a result, one area that is being severely disrupted is the home and auto insurance bundle,” said Robert M. Lajdziak, director, global insurance intelligence at J.D. Power. “Homeowners, and particularly bundlers, have traditionally been less price-motivated than the typical monoline auto customer, but we are beginning to see cracks in that foundation. That puts the focus for insurers squarely on the overall brand experience their customers are receiving—across all lines—and on understanding how changes in one area, such as telematics adoption in an auto policy, can affect the entire customer journey.”
Following are some key findings of the 2022 study:
Overall satisfaction declines, led by home and auto bundlers: Overall homeowner satisfaction decreases 6 points (on a 1,000-point scale) and renter satisfaction decreases 7 points this year. The declines among homeowners are driven by a sharp drop in price satisfaction, which is most pronounced among auto bundlers, where customers experience a 10-point decline in price satisfaction, while non-bundlers only see a 1-point decline.
Retention rates significantly lower among non-bundlers: The average homeowners insurance customer retention rate among homeowners who bundle their auto and home policies is 95%. Among non-bundlers, that rate drops to 85%. Similarly, among renters, bundlers have a 95% retention rate and non-bundlers have an 82% retention rate.
Auto premium increases put bundled home policies at risk: Nearly one-third (31%) of bundlers say they “definitely will” switch their home insurer if they switch their auto insurer after an insurer-initiated auto premium increase. Insurer-initiated auto premium increases also negatively affect home insurance intended retention and advocacy, regardless of bundling status.
How can I find additional insurance savings going into 2023?
Have your agent seek out additional discounts: Various membership groups such as AARP or AMAC offer additional savings of 5%-15% when you are 55 years old and at or near retirement. Some employers, professional associations and alumni groups offer affinity insurance programs that may offer a better deal than you can get elsewhere.
Improve your home security and safety: You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.
"There is a difference. To find out how our Arizona Independent Insurance Agency can help you find the right insurance coverage at the greatest savings, please contact PJS Insurance Services today. Give us a call at 602-750-0616 or
Request more information here."
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