A multi-line insurance policy is a single contract (or policy) that covers more than one category of risk. For example, according to Investopedia, multi-line policies often combine property and casualty coverage in a single document.
The benefits of a multi-line insurance policy can be found on both sides, so this is an attractive option for both consumers and insurance companies. The consumer receives a discount for bundling two or more policies together, while the insurer gets to assign a single deductible to apply to the entire contract, thereby reducing risk and financial liability.
However, if you are going to purchase a multi-line insurance policy, you must be prepared to negotiate an appropriate contract.
Know Competitor Pricing
Your strongest bargaining chip when negotiating a multi-line insurance policy is your knowledge of other options. Not only will this allow you to cite alternate options to the agent, but it will give you an idea of how far you can swing the premium in your favor.
Before you purchase a multi-line insurance policy, request quotes on the same policy parameters from at least three different providers. Then, armed with those quotes, contact each agent to negotiate the specifics. You will be more likely to receive an ideal offer.
Of course, you should also know that there is more to a multi-line insurance policy than the premium. Make sure you get the specifics on the deductible for the policy, any supplementary fees and the coverage limits provided.
Provide Data
You will get a better deal on your multi-line insurance policy if you can provide significant data to prove you are a low risk. If you are looking for health insurance as part of the policy, for example, you may want to bring to the table your medical records and your history of illness and injury.
The same is true for auto insurance, homeowner’s insurance and any other type of coverage. Know what types of factors might result in a discount so that you can get the most accurate quote possible. Remember that some discounts are only available to those who inquire about them.
Ask About the Difference
One of the main benefits of a multi-line insurance policy is the discount you receive for bundling insurance products. Insurers reduce the premium because you are choosing them over their competitors for numerous products, but you need to know exactly what type of discount you will receive.
The best way to obtain an accurate comparison is to ask for the rates for a multi-line insurance policy versus the rates for each individual product. This will tell you exactly how much you will save, which will foster a more accurate evaluation.
Prepare to Walk Away
Negotiating a multi-line insurance policy is no different from any other business transaction. You have something the insurer wants, and they have something you want. If they can’t give you the terms you feel you deserve, be ready to walk away.
You can’t force an insurance company to give you the premium discounts or the deductibles you want. All you can do is provide information and see what they offer in return.