Should you combine your insurance contracts?

Health insurance, home insurance, car insurance, borrower’s insurance, school insurance, smartphone insurance… So many products that an insurance company tries to get you to take out when you enter its agency or consult it on the Internet. All have a strong argument to encourage you to consolidate your insurance contracts: a drop in price. Indeed, many insurers offer a decreasing rate according to the number of contracts taken out with their company. In concrete terms, you could benefit from a 10% reduction on all of your contracts, from the moment when at least three separate contracts are signed with the same agency.

A second argument will also echo for many policyholders who are a little lost between their various contracts: simplification and proximity. It is true that having a single point of contact for all questions relating to your insurance can be a plus. You are no longer an ordinary customer for the advisor, but a premium customer. A relationship of trust can be established more easily. Certainly, but despite its advantages, the grouping of insurance contracts still has some disadvantages, or at least points of vigilance.

Grouping insurance contracts does not allow you to take advantage of the specialties of each insurer

While some insurance companies have specialized in auto/motorcycle insurance, others are showing very special performances in the field of home insurance. Still others have been able to develop interesting products in terms of tariffs and guarantees on health insurance or borrower’s insurance. In short, you have understood that each insurer has its own speciality, and no company can claim to be the most attractive in all these activities, which have very distinct realities.

By consolidating your contracts, you risk losing the strengths of each insurer. In other words, you will not be able to benefit from the best price/guarantee ratios offered by the various companies that have specialized in a specific sector. If you can be very well protected by a professional who offers best motorcycle insurance policyyou will probably be less so for your home, unless you request additional guarantees, but which would naturally increase the price and lose the advantages of grouping insurance contracts.

Grouping insurance contracts encourages them to choose contracts that are less suited to their needs and profile

In order to benefit from the preferential rate implied by the grouping of its insurances, one sometimes chooses a contract by default, the one which allows access to a particularly attractive price. However, finding a health insurance contract, for example, that meets the needs of your family must be the subject of very special attention. Depending on the health problems of the members of the family unit, certain guarantees will have to be carefully selected, in particular with regard to optical costs and dental care, which are still very little covered by health insurance. In terms of car insurance too, the profile of the insured must be taken into consideration. For example, based on the data it records on its electric cars, the Tesla brand wants to replace insurers to offer more advantageous insurance contracts to the drivers of their cars, because they are considered to be drivers with low accident risk. Proof that everyone has arguments to put forward with their insurance company.

Consolidating insurance contracts may not be advantageous in the event of past claims

With several accidents on the counter, the penalty increases the price of car insurance, but it remains compulsory. In effect, driving without insurance is a scourge that ruins lives. In this case, therefore, it is better to separate the insurance contracts. Because with several registered car claims, the insurer may well not let you benefit from attractive rates on its other contracts, because of the risk linked to your profile. If you multiply the clashes, you could also break your smartphone regularly or forget to turn off the tap, thus causing water damage. In any case, these are the conclusions that your adviser can draw. It will therefore be preferable here to dissociate car insurance from other contracts.

In general, grouping your insurance ultimately prevents you from competing, which is nevertheless the best way to find contracts with suitable guarantees at the best price.

(By the writing of the agency hREF)

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