NEW YORK (MainStreet) Consumers can easily save an average of $270 per year by simply purchasing their auto and homeowner's insurance from the same company, which yields a 15% discount, according to a new insuranceQuotes.com report.
"Consolidating your insurance policies with a single company is one of the easiest ways to save money," said Laura Adams, senior analyst, insuranceQuotes.com. "The differences between states can be attributed to competitive and regulatory factors."
Owners who live in the South can save even more the average savings in Louisiana is $505, while residents in Oklahoma can save $468, Texans can net $435 and those residing in Mississippi can save $422.
The lowest savings are in Hawaii where the average discount is $116, followed by Florida with $147, North Carolina with $166, Vermont with $176 and Idaho with $190. Click here to view the results for all 50 states and Washington, D.C.
"You can put the savings in a retirement account or for a vacation," she said.
The states with the highest discounts tend to have many natural disasters occurring, Adams said. When consumers combine their homeowner's insurance with an auto policy, it spreads the risk for the insurance companies to offer multiple products since most of the claims occur with cars, she said.
The average savings for combining car and condo insurance is 11% and consumers who bundle car and renter's insurance receive an average discount of 8%, the insuranceQuotes.com report said.
Consumers should still remain savvy and obtain quotes for each policy individually, Adams said. In some rare instances, you can get a better deal by purchasing policies separately depending on your occupation such as being a military member.
Statistics show that consumers who buy both auto and home insurance with the same company are much more likely to stick with that company for many years, said Mark Carrasquillo, broker with E.G. Bowman Company, an independent insurance agency in New York.