The Benefits of Bundling Your Home and Auto Insurance

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5 min read
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When it comes to car and home insurance, bundling your insurance — buying your auto and home insurance from the same insurance provider — can save you money. Most insurance providers offer multi-policy discounts for people who want to get multiple types of insurance with the same provider.

But how do you know if you’re one of the people who will save money, and how do you know which providers offer the best discounts for bundling insurance? This article covers the specifics of home and car insurance bundles, and gives in-depth information on the benefits of bundling and who the best providers are.

Home and car insurance bundles

Car insurance is required in nearly all 50 states, although minimum coverage requirements will vary by state. Your car lender may also require higher coverage limits to protect their interests. The most common types of car insurance you’ll be required to carry are bodily injury liability and property damage liability. If you’re required to carry insurance by your lender, you may also need to carry collision and comprehensive coverage, as well as uninsured motorist coverage.

Homeowners insurance, on the other hand, is not necessarily required by the state, but will likely be required by your mortgage lender. The most common types of homeowners insurance covers the structure of the home as well as property inside the home. It typically doesn’t cover flood damage, but that and other optional coverage can usually be added.

If you own your home and have a vehicle, you may qualify to receive discounts for bundling auto and home services with your insurance provider. That means you’ll get your car insurance and home insurance with the same provider, and usually have one monthly payment.

Renters, don’t worry, bundling isn’t just for homeowners. You can also score savings by bundling your car insurance with your renters insurance.

Why you should bundle your home and auto insurance

To bundle insurance — and land the discount that comes with it — you’ll need to buy both your home and car insurance with the same insurance provider.

Should you bundle home and auto together with one insurance carrier? Whether bundling insurance is the best option for you will depend on your personal situation, but it’s a common practice across multiple groups of people. For example, a 2015 J.D. Power study indicates that 65% of Generation Y homeowners bundle their insurance compared with 78% among all other generations. That same study indicates that people who bundle are happier with their insurance than people who don’t.

When you do choose to bundle your policies together, you get a few notable benefits:

Savings

The most lucrative benefit of bundling your car and home insurance is the savings you’ll get with a multi-policy discount. Nearly every insurance provider offers a discount for having multiple policies.

If you are a homeowner and you own a car, you are in a prime position to save money on your car and home insurance by bundling. And if your family has more than one car, or more than one home, you can save even more money by bundling those policies together as well.

Improved service

Another benefit of having all of your insurance with one provider is the level of service you will receive. While insurance companies are notoriously conservative in their payouts, the best insurance providers will value your business and provide top-notch customer service to keep you happy. The more coverage you have with an insurance provider, the more valuable your business is to them. Take advantage of that and bundle your policies for maximum service.

Fewer bills

If you are trying to consolidate your monthly payments, it may be beneficial to have just one monthly payment that you make for all of your insurance needs. Ask your insurance provider if you can consolidate your payments into one monthly payment by bundling services.

How to bundle your car and home insurance

If you currently have your home and auto insurance with two separate insurers, bundling your car and home insurance is relatively simple. The first thing you want to do is examine your current policy to see what coverage you have, and take note of any additional coverages you have that may or may not be offered by a different company.

Once you’ve established what coverage you already have, get home and auto insurance bundle quotes from your current providers, as well as two to three additional insurance providers. Take time to review each quote carefully to ensure you are getting adequate coverage for your premium.

After you’ve reviewed each quote carefully, you should be able to choose the car and home insurance quotes that work best for your needs. If you’re not going to see significant savings by bundling, it might make sense to keep your coverage as-is. But if moving to a single home and auto insurance provider will save you a good chunk of money each year, it’s worth it to put in the effort to switch insurance carriers to get all of your policies in one place.

If you’re choosing a new provider to land the best home and auto insurance bundles, they will instruct you on how to cancel your old insurance so you can easily switch over without having to pay extra money for premiums you don’t need.

Best home and auto insurance bundles by provider

The best home and auto insurance bundle quotes are provided by the top insurance companies in the United States. They offer the biggest discounts for home and auto insurance bundles. Allstate, for example, says you can save up to 25% by bundling.

The following table offers a glimpse into the bundle discounts offered by some of the leading insurance providers in the United States as of a 2019 study by U.S. News.

Average Car Insurance Premium Typical Bundle Discount
State Farm $3,260.00 Up to 17%
Geico $3,215.01 3%
Progressive $4,035.52 At least 5%
Allstate $4,887.95 Up to 15%
USAA $2,537.30 Up to 10%

Your car and home insurance quotes will vary depending on your age, driving record, claims history, type of car or home and a few other factors, sometimes including your credit history.

Don’t forget to shop around

If you’re thinking about bundling your home and auto insurance policies together for the first time, start now. You might be surprised how much you can save when you combine insurance.

But don’t take a set-it-and-forget-it mentality here. Every couple of years or so, take some time to gather quotes on home and auto insurance bundles from a few insurance carriers. This way, you can rest easy knowing you’re aware of the best home and auto insurance bundles and you’re getting the best, most affordable coverage possible.

Frequently asked questions

What does it mean to bundle insurance?

Bundling insurance means you’re getting multiple insurance policies from the same insurance provider. The most common example is home and auto insurance. When you buy both of those policies with the same insurer, you’re bundling.

Is it a good idea to bundle insurance?

Most people choose to buy home and auto insurance with one carrier. Basically, it’s a way to combine insurance to make it easier to manage your bills and your coverage. Plus, it usually scores significant savings, sometimes as much as 25%.

That said, the specific savings you see depend on some factors that are unique to you. Should you bundle home and auto together? The best way to know is to get home and auto insurance bundle quotes to see if bundling will land you a sizable discount.

What policies can I bundle together?

It varies from provider to provider, but the most common type of insurance bundle is home and auto. You can also bundle renters and auto insurance together, or bundle policies for multiple vehicles into one to score savings.