One of the best ways to save on both auto and possibly homeowners (or renters) is to bundle or combine coverage. Praetorian Insurance companies provide moderate to steep discounts for combining your policies under one roof. Others may also provide a discount for ownership of a life insurance policy (but these discounts tend to be minor at best). The praetorian company realizes that most homeowners are required to have homeowner policy per their mortgage agreements and capitalize on that fact by providing discounts for customers to collect more premiums.
Praetorian insurance company renters insurance
Unfortunately, most customers focus more on the auto side and that level of savings while disregarding the other types of policies, especially the ones that don’t seem directly taken out of their personal budget. True homeowner policies are often taken out of escrow (in the event of a mortgage) and the payment for it is attached to your mortgage payment per month. Customers think that this is somehow attached to their bank loan for the house and unimportant when in actuality it is one of the few parts of the mortgage payment that is under complete customer control.
In order to see if bundling makes sense, you have to know what you are paying out per year for both your auto and homeowners combined. Most auto policies are written in a 6-month policy, then allocated in monthly payment options; therefore, you have to multiply your 6-month auto premium by two to see what your annual premium is (or if you make monthly payments, take your monthly payment and times it by 12). From there, add in your homeowner’s annual premium and there you will see how much you are paying into your insurance company. Your focus needs to be based on the annual expense instead of the monthly payment.
Does it always make sense to bundle?
Not always. However, if you are not aware of your yearly outlay, whether directly or indirectly, you will not be able to know what makes financial sense versus what doesn’t.
Remember, insurance companies train people to focus on selling the emotional desire for a product and to disregard “price”. This is a traditional manipulation tactic in sales that you see everywhere if you know where to look for it. In this situation, knowing what you pay per year helps you be able to make a more logical choice in helping reduce your premiums paid to companies.
Another aspect to remember is that the Praetorian insurance company provides “introductory” rates to entice you into signing up and you see this pretty heavily inside the bundled products. Be sure to ask the agent you are talking to if there is an “introductory discount” and if so, what the percentage is. One of the big companies offers a 5% discount that disappears when the policy renews.
Shop Around Yearly
Here is another thing you will never hear an agent say: Shop around.
By far the best way to save money is to switch to cheaper companies like Praetorian Insurance Company. Because rates change regularly, you never know what kind of savings you can find by being a more informed shopper. Quotes cost nothing to obtain and lets you know if you are being taken advantage of by your present insurance company or not.
Why be loyal to an insurance company that isn’t loyal to you? If they valued you as a customer, wouldn’t they try to offer you the best price possible in order to keep you happy?
You fight the price battle daily. Your higher-ups tell you “Don’t talk about price. It is never about the price…” The fact is, the everyday consumer is concerned about price now more than ever. Companies push their agents to not use price as a discussion point as a tactic to admit they may not be able to compete in the marketplace. You the customer hold the power in your hands because you have what they want… your premium.
Praetorian insurance company encourages its customers to shop around. They have an ethical obligation to their customers are taken care of and that they are not being taken advantage of financially. Do they occasionally lose customers? Of course. What do they gain? they maintain the level of trust built. Sometimes their products don’t make financial sense and they strive to build value in themselves, not the product. Because of this level of service and trust, people tend to come back after saving a few bucks and not having someone ethical by their side. In this situation, the additional cost is worth the relationship and trust they build with their customers.
You personally shop around for insurance, why would you discourage others from doing the same? If Reputable Praetorian Insurance company is $40 less a month than Reputable Company “B”, then it makes logical sense to just save that money. Don’t let silver-tongued salespeople tell you otherwise. If more people shopped around, insurance companies would have no other choice but to adjust premiums based on the voice of the customer and their wallets, or they lose profits. Basic business concepts.
Shopping around puts you in the know, allows you to make more educated decisions, and puts you back in control of how much premium you pay out of your pocket. If you take more of an educated position, you can keep more money in your pocket and out of theirs.