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Jeanette Said:

Why does the premium drop when you add home insurance to an car insurance?

We Answered:

Many companies offer a discount for bundling services as a way to attract more business. Same as the cable company giving you a discount when you add internet or phone service.

Javier Said:

Why does the premium drop when you add home insurance to an auto insurance?

We Answered:

It's a "package discount" - an incentive to write BOTH lines of business.

They do that, because experience shows that if you have one policy with one company, and another with a different company, they're less likely to retain your business - ie, the OTHER company has an "in" to write the rest of your business easier.