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Whether you’re a homeowner or a renter, there’s a good chance that you own or lease at least one vehicle. After all, most people need to commute to work or have a car in the driveway to get around. And, if you choose to insure both your vehicle and your home or renters insurance with the same carrier, you may be eligible for a multi-policy, or bundle, discount. This discount is typically one of the largest offered by insurance companies, which means that if you qualify, a bundling discount could result in significant savings on the cost of your insurance premiums.
It’s important to understand, though, that while you may receive a discount for bundling your home or renters and car insurance with the same carrier, you are still responsible to ensure both policies are paid, whether separately or on the same billing account. And while the policies are bundled with the same carrier, they are typically still considered to be separate policies with different policy numbers. Want to learn more about the benefits of bundling your policies together? Here’s what you should know, and where to find the best bundle discount savings.
What are the benefits of bundling your home and auto insurance?
Bundling your auto and home insurance can 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 could be well worth your time and lead to reduced premiums.
- Car insurance discounts for bundling typically offer significant savings on your home and auto policies.
- 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 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.
- 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.
- Not all insurers offer both home and auto policies, which means bundling might not be an option.
- If you have specific needs for your home insurance, bundling may not be an option for you. For instance, if your home policy was switched to a high-risk home insurance company after making a personal liability claim, you may not have an option to bundle your auto policy.
- 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.
- 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.
Best home and auto insurance bundles
Most property and casualty insurers that sell both auto and home insurance offer multi-policy, or multi-line, discounts, but the savings vary depending on individual carriers. 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.
We determined the following companies to be the best companies for home and auto insurance bundles. To find the best companies for bundling, 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.
|Company||Average annual full coverage car insurance premium||Typical bundle discount|
|Allstate||$2,438||Up to 25 percent|
|Nationwide||$1,383||Up to 20 percent|
|State Farm||$1,397||Up to $1,127|
|Travelers||$1,447||Up to 13 percent|
|USAA||$1,209||Up to 10 percent|
Allstate, the fifth-largest property/casualty insurer in the U.S. based on market share according to the Insurance Information Institute (Triple-I), advertises the largest bundling discount of any company on our list, with policyholders able to save up to 25 percent. Allstate offers home and auto insurance in all 50 states and Washington, D.C., so it’s a popular option for many individuals seeking companies with nationwide availability. The company also has a network of more than 12,000 exclusive local agents that can help answer your policy questions and assist you in setting up home and auto bundling. Allstate’s average premiums are on the high side, but with bundling and other possible discounts available, you may find your rates dropping below the average.
Learn more: Allstate Insurance review
Nationwide, the 10th largest property/casualty insurer, offers a bundling discount of up to 20 percent, which is high compared to its competitors. Nationwide has more than 11,000 independent agents who can help you choose the right coverage options with the best savings possible. The company writes policies in nearly every state. However, if you live in Florida, Louisiana, Massachusetts, New Jersey or New Mexico, you may not have access to either Nationwide home or auto insurance. Before making your purchase decision, keep in mind that Nationwide scored below the industry average in J.D. Power’s 2022 U.S. Home Insurance Study for customer satisfaction, showing that some policyholders may not have been satisfied with their experience. However, Nationwide has an A+ (Superior) financial strength rating from AM Best.
Learn more: Nationwide Insurance review
State Farm’s auto insurance bundle reaches up to $1,127 in savings. The nation’s largest property and casualty insurer, State Farm writes policies in all 50 states and Washington, D.C. and has a strong local market presence with more than 19,000 exclusive agents across the U.S. You’re likely to find an agent near you who can help you craft coverage that meets your needs at a good price. However, State Farm does not offer gap insurance on its auto policies, you may want to consider another provider. The company carries an A++ (Superior) financial strength rating from AM Best, the highest level possible, and scores above average on J.D. Power’s Customer Satisfaction Index Ranking.
Learn more: State Farm Insurance review
Travelers’ bundling discount, which generates up to 22 percent savings off your premium, helps qualifying policyholders reduce their premium. The sixth-largest property/casualty carrier, Travelers writes policies in all 50 states, Washington, D.C. and Puerto Rico, making it accessible to most Americans. With around 13,500 independent agents and brokers across the U.S., you can easily get answers to your questions and help with your policy when needed. Travelers ranks below-average in customer satisfaction as surveyed in the J.D. Power Home Insurance Study. However, the company carries an A++ (Superior) financial strength rating from AM Best, meaning that it has historically proven to be financially stable and able to pay out on claims.
Learn more: Travelers Insurance review
USAA offers up to 10% savings for bundling. Although this is not as much as the other carriers on our list, USAA consistently offers premium rates that are well below average. USAA, the eighth-largest property/casualty insurer in the U.S., only writes policies for active-duty members of the U.S. military, veterans and qualifying family members, but if you are eligible, the company may be a great choice for bundling. USAA consistently ranks highly for customer satisfaction and claims service with J.D. Power, and is available in all 50 states and the District of Columbia. USAA carries an A++ (Superior) financial strength rating from AM Best.
Learn more: USAA Insurance review
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 the premium is not the only factor you should review on a quote. You may also want to consider the coverages and policy features for each home and auto quote you received, as well as each company’s customer satisfaction scores and financial strength ratings.
How to bundle your car and home insurance
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. Determining if you are looking for exceptional customer service, a highly rated mobile app or certain coverages, 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 quotes from multiple companies. Once you know what qualities and coverages you are looking for, you can request auto and home quotes from several different companies that offer bundling discounts.
- Review each quote carefully. Assess each auto and home quote carefully to determine if the coverages, 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.
How to save the most by bundling
Bundling your auto and home policies could save you money, but there are other ways you can 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% 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 their 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.
- Increase your deductibles. Your home policy’s standard deductible is the amount you will pay out of pocket if you file a claim for a covered loss to your property. If you have full coverage auto insurance, your policy has two deductibles: one for comprehensive and one for collision. Raising your home and/or auto deductibles can significantly lower your premium. However, it means you will need to pay more out of pocket if you file a claim for covered home or vehicle damage, so be sure to choose a deductible level you can afford.
- 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.
Learn more: Average cost of homeowners insurance
Frequently asked questions
The best home insurance companies depend on your individual preferences and needs. Some shoppers may care most about getting the cheapest premium, while others might prefer the company with the highest J.D. Power score for customer satisfaction or its financial strength ratings. To find the right company for you, it may be helpful to find the companies that offer the policy types you want, and then compare quotes from these companies. Independent and exclusive insurance agents may be able to assist you in the process.
Just like with home insurance, no auto insurance company is the best for every driver. Everyone has different rating factors, different levels of risk tolerance, different coverage needs and different wants when it comes to choosing an insurance company. Understanding what you are looking for from a home insurer and obtaining multiple quotes can be helpful.
The policies you can bundle together will typically depend on the insurance company, with home and auto being the most common bundle. For example, Farmers allows you to bundle your car insurance with another Farmers policy, whether it’s home, life, small business, specialty or umbrella insurance. With Allstate, you can bundle home and auto, renters insurance and auto insurance or renters and motorcycle insurance. If you want to know which policies you can bundle together, it can be helpful to speak with your insurance agent or company.
If you qualify for both auto and home insurance coverage with a single carrier, it can often be financially worthwhile to bundle your policies. Multi-policy discounts are often some of the biggest savings that insurers offer. However, you might find that you can purchase separate policies for auto and home with different companies and still get a lower rate on each, even without a multi-policy discount, if the base premium is lower for each. And in some cases, bundling may not be available to you if your preferred auto or home insurer does not sell other lines of insurance.
Bankrate utilizes Quadrant Information Services to analyze 2022 auto insurance rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 2020 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.