Report: R.I. 22nd in nation for savings from bundled home, car insurance

RHODE ISLAND consumers can save an average of 12.1 percent if they bundle home and car insurance, according to insurancequotes,com. / COURTESY INSURANCEQUOTES.COM
RHODE ISLAND consumers can save an average of 12.1 percent if they bundle home and car insurance, according to insurancequotes,com. / COURTESY INSURANCEQUOTES.COM

PROVIDENCE – Bundling home and auto insurance creates an average savings of $275, or 12.1 percent, in Rhode Island, ranking the state 22nd nationwide for savings, according to an insurancequotes.com report.

Rhode Island’s savings are below the average savings of $295, or 16 percent, nationally, achieved when consumers purchase their car and homeowner’s insurance from the same company, the website said.

Insurancequotes.com said that lowering insurance costs is “especially important” for Rhode Islanders, because they have the country’s seventh-highest homeowner’s and eighth-highest car insurance costs. The website cited data from the National Association of Insurance Commissioners.

Insurancequotes.com said states with the highest average annual savings through bundling are Louisiana, $548; Oklahoma, $489; Texas, $429; Mississippi, $405; and Kansas, $403.

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Idaho, at $172; Vermont, $174; Utah, $183; West Virginia, $184; and Virginia, $189; all have the lowest average annual savings, it said.

“In most cases, you’re going to save money by bundling your policies together, but I always tell people to get quotes together and separately,” Laura Adams, senior analyst, insuranceQuotes.com, said in a statement. “Every situation is unique, and some people are able to save money by splitting their policies between different insurers.”

The average savings for combining car and renter’s is 8 percent, while bundling car and condo insurance nets an average savings of 11 percent.

Rhode Island was among five states with the lowest percentage premium discounts for bundling car and condo insurance at 7 percent, a figure it shared with Virginia and Florida. New York and Connecticut rounded out the list with a savings of 8 percent.

Insurancequotes.com came up with its findings by using data from the largest carriers – representing 60 to 70 percent market share – in each state and the District of Columbia.

Averages are based on a 45-year-old married, employed female with a clean driving record, who has a bachelor’s degree, an excellent credit score, no lapses in coverage and includes the following limits: $100,000/$300,000 (bodily injury), $100,000 (property damage) and a $500 deductible.
Home coverage is based on a single family, two-story, 1,800 square-foot home, built in 1976 and the following limits: $140,000 (dwelling), $70,000 (personal property), $300,000 (liability), $5,000 (medical) and a $500 deductible.
Condo coverage is based on $50,000 (personal property), $100,000 (liability), $5,000 (medical) and a $500 deductible, while renters coverage is based on $20,000 (personal property), $100,000 (liability), $5,000 (medical) and a $500 deductible.

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