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The best home and auto insurance bundles of 2023
Bundling your home and auto coverage may save you money and simplify your policy management.
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Key takeaways
- Most insurance companies provide bundling discounts when policyholders purchase more than one policy type with the same carrier.
- Allstate, Farmers, Nationwide, State Farm and Travelers stand out as the top five carriers with the most significant or unique bundling discounts in 2023.
- Typical bundling discounts with many top carriers hover around 20 percent.
If you choose to insure both your vehicle and your property — whether it’s home, condo or renters coverage — with the same insurance carrier, you may be eligible for a multi-policy discount, sometimes called a multi-line or bundling discount. This discount is typically one of the largest offered by insurance companies, which means that if you qualify, you might see significant savings on both your insurance premiums. While the policies are “bundled” with the same carrier, they generally aren’t actually covered on the same policy and will usually have different policy numbers. Bankrate walks you through the benefits of bundling, explains how bundling home and car insurance works and may help you decide if it’s the right fit for your coverage needs.
Best home and auto insurance bundles
Most property and casualty insurers that sell both auto and home insurance offer bundling, multi-policy or multi-line discounts, but the potential savings and eligible policy types vary depending on the carrier. You will typically see savings on both policies, which may be listed as a dollar amount or percentage. The following table illustrates the amount you could potentially save on your auto insurance by bundling policies with some of the largest U.S. insurers, and may help you find the best home and auto insurance bundle for your needs.
We determined the following companies to be the best companies for a car and home insurance bundle. To find the best bundle insurance, we analyzed the largest companies by market share, found which ones offered bundling, and narrowed down providers by how large their bundling discounts typically are. All of the selected companies also offer a strong variety of policy endorsements and other discounts, as well as strong customer satisfaction and financial strength ratings. If you want to bundle auto and home insurance, you might want to start with quotes from these companies:
| Company | Average annual full coverage car insurance premium | Average annual home insurance premium for $250K dwelling | Typical bundle discount* |
|---|---|---|---|
| Allstate | $2,630 | $1,340 | Up to 25 percent |
| Farmers | $1,598 | $1,664 | Average of 20 percent |
| Nationwide | $1,422 | $1,153 | Up to 20 percent |
| State Farm | $1,480 | $1,462 | Up to 30 percent |
| Travelers | $1,551 | $1,249 | Up to 22 percent |
*Savings amounts represent the combined average savings reported by the company for auto and home premiums.
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The right insurance bundle may look different for everyone, and you might have considerations beyond just cost. At Bankrate, we used our insurance industry expertise to compile a list of the top home and auto insurance companies that offer bundling discounts.
Along with using proprietary data from Quadrant Information Services to obtain up-to-date average rate information for home and auto policies, our insurance editorial team searched for bundling opportunities with the largest potential savings, ease of access through digital tools, strong customer satisfaction scores and policy availability across different lines of business.
Top 5 home and auto insurance companies for bundling
When shopping for policy bundles, it is important to review your quotes carefully. Finding a competitive price for your insurance is a priority for many, but low premiums may not be the only critical factor. You may also want to consider policy features, coverage levels and digital tool availability for each home and auto quote you receive. Since you may be placing more of your assets under the same insurance company, factors such as customer satisfaction scores and financial strength ratings may be even more critical. From the companies reviewed, we determined that these five offer strong home and auto coverage options with substantial potential bundling savings.
Bundling discount: Up to 25 percent
Allstate is one of our 2023 Bankrate Award picks for Best Home Insurance Company Overall. The carrier boasts an impressive bundling discount, allowing policyholders to save up to 25 percent. Allstate has availability across all 50 states and Washington, D.C., as well as a strong selection of unique endorsements for policy customization. Policyholders can choose from add-ons like homesharing coverage and green improvement reimbursement. However, the carrier did score below the segment average for overall homeowners customer satisfaction and property claims satisfaction from J.D. Power, so shoppers who value service may want to speak with existing policyholders for more information.
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Auto coverage is available in all 50 states and Washington, D.C. Home insurance is available in all states except California, where the company is not writing new policies, although existing policies are still active.
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Claims-free discount and Rateguard endorsement may help keep rates low
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Average premiums are higher than some competitors for home and auto coverage
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National Association of Insurance Commissioners (NAIC) complaint indexes and J.D. Power scores indicate poor customer service compared to some competitors.
Bundling discount: Average of 20 percent
Farmers offers an attractive bundling discount with average savings of 20 percent. With numerous discounts available for both auto and home insurance, it could be a favorable option for those keen on savings. Farmers has local agents available for service, which may appeal to those who prefer to manage their insurance face-to-face, but the carrier scored towards the bottom of the 2023 J.D. Power Home Insurance Study, so you may want to speak with existing policyholders about their experience.
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Average bundling discount of 20 percent
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Multiple discount opportunities for both home and auto insurance
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Local agent representation provides personalized service
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Lower-than-average ranking on J.D. Power's 2023 U.S. Home Insurance Study
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Coverage is not available in all states
Bundling discount: Up to 20 percent
Nationwide provides a bundling opportunity with potential savings of up to 20 percent. Sold through local independent agents, Nationwide's products cater to almost every state, though exceptions include Alaska, Florida and Hawaii, among others. While Nationwide boasts an A+ (Superior) financial strength rating from AM Best, it's worth noting its slightly below-average score in J.D. Power's Home Insurance Study, suggesting varied customer experiences.
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Up to 20 percent bundling discount
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Distributed through local independent agents for personalized service
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A+ (Superior) financial strength rating from AM Best
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Coverage exclusions in several states
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Scored below the industry average on J.D. Power's 2023 Home Insurance Study for customer satisfaction
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Scored below–average for auto claims satisfaction with J.D. Power in 2023
Bundling discount: Up to 30 percent
State Farm, the nation's largest property and casualty insurer by market share, offers a remarkable bundling discount of up to 30 percent. With its wide footprint, State Farm serves Washington, D.C. and all U.S. states, except Massachusetts and Rhode Island. The carrier has generally high scores with J.D. Power for customer and claims satisfaction, perhaps because of its large agent network and advanced digital tools. State Farm does have fewer auto and home endorsements than some competitors, which may be an issue for shoppers looking for specific coverage types.
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Industry-leading bundling discount of up to 30 percent
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Extensive network of exclusive local agents for personalized assistance
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A++ (Superior) financial strength rating from AM Best
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No gap insurance offering on auto policies
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Coverage is unavailable in Massachusetts and Rhode Island
Bundling discount: Up to 22 percent
Travelers offers an enticing bundling discount that allows customers to save up to 22 percent on their premiums. The bundling discount consists of an average savings of 10 percent on auto and 12 percent on home insurance. While Travelers doesn't serve every state, its wide network of independent agents provides personalized coverage to many U.S. residents. Despite its A++ (Superior) financial strength rating from AM Best, potential customers should be aware that Travelers scored third-to-last in the 2023 J.D. Power Home Insurance Study.
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Auto and home bundling discounts lead to combined savings of up to 22 percent
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Unique home and auto endorsements not found with many other carriers
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Coverage isn't available nationwide
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Below-average auto and property claims satisfaction as indicated by 2023 J.D. Power studies
How does a home and auto insurance bundle work?
If you’re wondering how to bundle auto and home insurance, don’t worry. The process is fairly easy. Bundling insurance refers to the process of purchasing multiple types of insurance policies from the same insurance provider. For example, you could buy home, auto and RV insurance from the same company, and so on with other policies, if available. One of the main benefits of bundling is that companies often offer discounts if you hold several policies with them, so it can save you money. In fact, most carriers will automatically add a multiple-policy discount on both policies, allowing you to save money on your total cost of insurance.
While bundling usually refers to home and auto insurance, you may be eligible for a multiple policy discount if you purchase other types of insurance from the same insurer, like an RV, boat or umbrella policy. And while the total bundling discount varies by company, the discounts offered for bundling your insurance policies are often some of the best ways to save on your policy premiums. However, it should be noted that companies are forbidden by law to extend life insurance discounts. You may be able to bundle life coverage with other policy types, but the discount will only apply to the other policy type.
Should you bundle your home and auto insurance?
Bundling your auto and home insurance could be a great way to generate significant savings on both policies and make your insurance more convenient to handle with a single insurer. If you own a home and have a car, getting quotes for both policies with the same insurer might be well worth your time and lead to reduced premiums.
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Potential savings. Car insurance discounts for bundling typically offer significant savings on your home and auto policies.
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Easy policy management. Bundling typically allows you to manage multiple insurance products in a single online account and via the same mobile app, if one is available. You might also work with a single agent.
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Streamlined billing. You might be able to combine bills if you bundle home and auto insurance, which means you’ll only receive one bill for both policies each billing cycle. However, home insurance is typically paid through your mortgage lender via an escrow account — not paid directly by the policyholder.
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Potential for a single deductible. Depending upon your insurer, you might qualify for a single deductible, which typically means that if your vehicle(s) and home are damaged in a single covered event — like a storm collapsing your roof onto your garage and parked car, for example — you will only pay one deductible versus two. Plus, you have the added benefit of only having to deal with one company for the claim, rather than two separate companies with different processes.
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Bundles may not be available. Not all insurers offer both home and auto policies, which means bundling might not be an option.
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Limited coverage and discount options. It may be difficult to find a carrier that offers all the home and auto endorsements you're looking for. If you're looking for specialized discounts, like a telematics program, these may also be difficult to find across policies with the same company.
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Some products may be sold by third parties. A car insurance company may have a partner company that sells home insurance and call it a “bundled” policy. While having the two policies could still generate significant savings, holding separate policies with different insurers means you won’t be able to manage your policies all in one place.
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A bundle might not result in the lowest rates. Your current insurer may allow you to bundle policies, but that doesn’t automatically mean you’re getting the best rates available. Additionally, bundling home and auto policies may hamper you from shopping around, since you may want to find a new carrier that allows you to insure both products at the best price with the best discounts.
How to find the right home and auto insurance bundle
Bundling your car and home insurance is relatively easy. Although it may sound like you are getting a combined auto-home insurance policy, this is typically not the case (although some companies do offer auto and home policies written under a single policy number). You will generally need to purchase your auto and home insurance with the same insurer to qualify for a bundling discount. Here are some steps you can take to bundle your policies:
- Decide what you want from your insurer. If you aren’t sure how to shop for home and auto insurance, this is a good place to start. Determining if you are looking for exceptional customer service, a highly rated mobile app or certain coverage types, for example, can help you decide which companies to get quotes from. It may also be beneficial to work with a local insurance professional who can provide you with guidance throughout this process.
- Get home and auto insurance quotes. Once you know what qualities and coverage types you are looking for, you can request auto and home quotes from several different companies that offer bundling discounts. Many companies allow you to source home and auto quotes within the same quoting process.
- Review each quote carefully. Assess each auto and home quote carefully to determine if the coverage, premium and details included are accurate and fit your needs. Also make sure the quotes highlight the amounts of the discounts you will receive for bundling.
- Choose a company and start your policies. Once you have decided which insurer suits your home and auto insurance coverage needs best, your insurance professional can walk you through the steps to purchase your policies.
- Cancel your previous insurance policies. If you already had home and auto insurance coverage with other carriers, you will need to cancel your existing policies if you plan on placing them with a single insurer. When switching to a new carrier, it is typically best to wait to cancel your prior policies until you know the effective date of the new policies, so you can avoid a lapse in coverage. As home insurance is typically paid through your escrow account, you may need to communicate with your lender about the coverage switch.
How to save money when bundling auto and home insurance
Bundling coverage with the best home and auto insurance companies may save you money, but there are other steps you can take to potentially maximize your premium savings.
- Get quotes from several insurance companies. This is important, as every carrier has a different process for setting rates. For instance, your bundling discount could be 25 percent with a carrier, but if the underlying rates are higher than other insurers, you could end up saving more with a carrier that quotes a lower base premium for you — even if the carrier's bundling discount is smaller.
- Take advantage of other discounts. Having a multi-policy discount on your auto and home insurance does not preclude you from applying other discounts to maximize your savings. Utilizing other discounts that you qualify for might help you save additional money on your premium.
- Review your policies when life events happen. Staying with the same insurer for several years can be a good way to earn loyalty discounts, but occasionally shopping your coverage with other carriers can help you learn if you are still getting a competitively-priced bundle. It can be helpful to shop for insurance after significant events in your life that tend to alter your finances, like getting married or divorced, having a baby or moving to a new home.
- Improve your credit score. In most states, carriers are allowed to consider your credit history when pricing your home and auto coverage. Improving your credit score may earn you a lower premium at renewal.
Learn more: Average cost of homeowners insurance
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C.
Auto insurance
Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Home insurance
Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.