The average $116 discount Hawaii consumers receive for buying car and home insurance from the same company is the lowest in the nation, according to insurancequotes.com.
A Quadrant Information Services study commissioned by the online company found the national average savings to be $270 a year, a 15 percent discount.
While consolidating insurance policies with a single company is one of the easiest ways to save money, the differences between states can be attributed to competitive and regulatory factors, Laura Adams, senior analyst at insurancequotes.com, said in a news release.
States where consumers are offered the highest average savings are Louisiana at $505; Oklahoma at $468; Texas at $435; Mississippi at $422; and No. 5, Missouri, at $366.
Besides Hawaii, the states with the lowest price reductions are Florida at $147; North Carolina at $166; Vermont at $176; and Idaho at $190.
By percentage, Hawaii had the second-lowest discount at 7.04 percent, with Florida at the bottom at 4.86 percent. Both states are known to be at high risk for hurricanes, making it more expensive for residents to insure homes. Oklahoma’s average premium discount is the highest at 22 percent.
"I think consumers, in general, leave a lot of potential insurance discounts on the table, and bundling is one of the biggest," Mike Barry, spokesman for the nonprofit Insurance Information Institute, said in the release. "No matter where you live, a multi-policy discount is worth looking into."
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BUNDLING TIPS
Tips on saving money by bundling auto and home coverages:
>> Pay attention to policy details: It’s important to find the best policy for your situation, which means looking at more than the multipolicy discount.
>> Consider the net price: Most of the time, bundling insurance is a smart choice for consumers. However, there are exceptions when purchasing policies from different carriers may be less expensive, so be sure to shop for insurance both ways before making a decision.
>> Shop different companies: Don’t go with the first company that offers you a multipolicy discount. Compare at least three different carriers.
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The Hawaii Insurance Division said it is reviewing the results of the national study.
"Our initial concern about the methodology used is the fact that the study doesn’t include all carriers and rates and is not reflective of the Hawaii market," Gordon Ito, state insurance commissioner, said in a statement. "We are vigilant in how we approach the issue of consumer savings and would like to encourage consumers to review insurance policies annually and shop around in order to ensure that they are adequately covered for the right price."
The state Insurance Division releases motor vehicle and homeowner premium comparison sheets annually at cca.hawaii.gov/ins.
For the company’s full list of discount data for all 50 states and Washington, D.C., go to insurancequotes.com/home/bundling-insurance.
