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The best home and auto insurance bundles of 2023
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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 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.
- Most insurance companies provide bundling discounts when policyholders purchase more than one policy type with the same carrier.
- Although bundled policies are from the same carrier, they typically are independent policies with separate policy numbers.
- Typical bundling discounts with many top carriers hover around 20 percent.
- Some insurance bundles have the added benefit of sharing an online billing account to make managing bill payments easier.
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, 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. 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 $1,127|
|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.
How Bankrate picked the best home and auto insurance bundles
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.
Allstate, the fifth-largest property and 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 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 drop below the average.
Farmers is the ninth-largest property and casualty insurer in the country by market share, and its bundling discount saves an average of 20 percent. There are plenty of other ways to save on both auto and home insurance, too, so Farmers could be a good choice for those who value discounts. Farmers policies are sold by local agents, too, which might be appealing if you like handling your insurance needs in person. However, J.D. Power ranks Farmers near the bottom of its 2022 U.S. Home Insurance Study. Additionally, coverage isn’t available in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C. or West Virginia.
Nationwide, the 10th largest property and casualty insurer, offers a bundling discount of up to 20 percent. Nationwide sells its products through local 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 Alaska, Florida, Hawaii, 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 the J.D. Power 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.
State Farm’s auto insurance bundle reaches up to $1,127 in savings. The nation’s largest property and casualty insurer, State Farm is licensed in all 50 states and Washington, D.C., but policies currently aren’t available in Massachusetts or Rhode Island. The company has a strong local market presence with 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, so if you need or want this coverage, 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 for customer service, according to J.D. Power.
Travelers’ bundling discount generates up to 22 percent savings off your premium — 10 percent off your auto and 12 percent off your home policy. The sixth-largest property and casualty carrier, Travelers isn’t available nationwide, but could be an option for drivers and homeowners in most states. With independent agents and brokers selling Travelers’ coverage 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.
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 life 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.
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. 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 from multiple companies. Once you know what qualities and coverage 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 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.
Can I bundle other policies?
Yes, you can bundle other policies, though the types of policies that can be bundled vary by insurer. Some policies you may be able to bundle together for more savings are:
With life insurance policies, it’s important to note that it won’t be your life insurance premium that is discounted. Some companies offer discounts on your other policies if you buy life insurance, but life premiums legally cannot be discounted.
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 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. Deductibles work a little differently on auto policies. If you have full coverage auto insurance, your policy has two deductibles: one for comprehensive and one for collision. Raising your home 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
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.
You may see some savings. Car insurance discounts for bundling typically offer significant savings on your home and auto policies.
Policy management might be easier. Bundling typically allows you to manage multiple insurance products in a single online account and via the same mobile app, if one is available.
Billing could be more streamlined. 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.
You might qualify 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.
Bundles may not be available to everyone. Not all insurers offer both home and auto policies, which means bundling might not be an option.
Bundling could limit your ability to find specialized coverage. 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.
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.
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.