The benefits of bundling your home and auto insurance
Bundling discounts, sometimes called multi-policy discounts, are common among insurance companies that offer different lines of insurance. The most common multi-policy discount is for home and auto insurance bundles. Bundling insurance does not mean that your home and auto are insured on the same policy; it only means that they are insured with the same carrier. Finding the best home and auto insurance bundles for your needs may save you hundreds of dollars on each of your policies as these discounts are often some of the largest available.
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.
- Bundling car insurance discounts typically offer significant savings on your home and auto policy. Allstate offers a home and auto insurance bundle that gives customers up to 10% off car insurance and 25% off home insurance rates.
- Bundling often allows you to manage multiple insurance products in one online account and mobile app. Nationwide’s highly-rated app, for instance, allows policyholders to manage their home and auto policies in one place.
- 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.
- You could qualify for a single deductible, which typically means that if both your car(s) and home are damaged in a single event — e.g., a storm collapsing your roof onto your garage and parked car, for example — you will only pay one deductible for all the damage. Details will vary by insurer.
- 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 be able to bundle your auto policy.
- A car insurance company may set you up with a partner company that sells home insurance and call it a “bundled” policy. However, holding policies with separate insurers means you won’t be able to manage your policies all in one place.
- Bundling home and auto policies may hamper you from shopping around. Your current insurer may allow you to bundle policies – but that doesn’t automatically mean you’re getting the best deal available.
Best home and auto insurance bundles
Most insurers that sell both auto and home insurance offer multi-policy discounts, but the savings vary depending on individual carriers. You will typically see savings on both policies. The following table illustrates the amount you can save on your auto insurance by bundling policies with some of the largest U.S. insurers.
|Company||Average annual car insurance premium||Typical bundle discount|
|Allstate||$1,921||Up to 25%|
|Nationwide||$1,485||Up to 20%|
|State Farm||$1,457||Up to 17%|
|Travelers||$1,325||Up to 10%|
|USAA||$1,225||Up to 10%|
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 often 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 an 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.
- 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.
- Choose a company and start your policies. Once you have decided which insurer suits your home and auto insurance coverage needs best, your insurance representative can walk you through the steps to start your policy.
- Cancel your previous insurance policies. If you already had home and auto insurance with other carriers, you will need to cancel your policies. 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 still ways you can maximize your savings.
- Get quotes from several insurance companies. This is important, as every carrier has a different rating system. 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 has lower rates 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. Utilizing other discounts that you qualify for might help you save additional money on your premium.
- Increase your deductibles. Your home policy’s deductible is the amount you will pay out of pocket if you file a claim for damage to your property. If you have full coverage auto insurance, your policy has two deductibles: one for comprehensive and one for collision. Raising your deductibles generally lowers your premium. However, it means you will need to pay more out of pocket if you file a claim for home or vehicle damage, so be sure to choose your 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, having a baby or moving.
Frequently asked questions
What is the best home insurance company?
There are many home insurers on the market and there is not a single company that is the best for everyone. To find the best home insurance company for your needs, you might want to get quotes from several providers and compare the coverages, discounts, policy features and premiums.
What is the best auto insurance company?
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 a company. Understanding what you are looking for from a company and obtaining multiple quotes can be helpful.
What policies can I bundle together?
The most common type of bundling discount is for home and auto insurance policies. However, many providers also offer a discount for bundling an auto insurance policy with a condo owners or renters insurance policy. Some companies even offer bundling discounts for buying other types of policies with your auto insurance, like a life insurance, pet insurance or business insurance policy.
Is it worth it to bundle home and auto insurance?
If you qualify for both auto and home insurance with a single carrier, it can often be financially worthwhile to bundle your policies. Multi-policy discounts are often some of the biggest discounts that insurers offer. However, you might find that you can purchase separate auto and home policies with different companies and still get a lower rate on each, even without a multi-policy discount. 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 2021 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 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.