How to Save by Bundling Home and Auto Insurance

Bundling usually gives a price break on home and auto insurance policies, but sometimes it pays to shop around.
Ben MooreSep 16, 2021

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An easy and popular way to save money on insurance is to buy your home and auto insurance from one company. This option is known as "bundling" and gives you a discount when you get more than one policy from the same insurer.

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What are the benefits of bundling home and auto insurance?

Many insurers offer the option to bundle multiple products together. Depending on your insurer, you may see bundling referred to as a multipolicy, multiline or multiproduct discount.

Bundling your home and auto insurance comes with benefits that can include:

  • Increased savings. A multipolicy discount could save you as much as 25%, depending on the company and where you live.

  • Simplified policy management. You should have less of a hassle managing multiple policies when they come from the same company.

  • Insurance security. If you’ve made auto insurance claims or gotten tickets, having other policies with the same company can lower the chances your insurer will drop you.

Home and auto insurance bundles by company

Many insurers offer bundling discounts, but how much you save depends on where you live and the company that insures you.

The table below features the 10 largest auto insurance companies by market share, all of which offer multipolicy discounts. Not all companies or discounts may be available in your state.

Company

Bundling discount*

Up to 25% off.

Up to 29% off auto, and up to 20% off home.

Discount varies.

Discount varies.

Discount varies.

Up to 20%.

Discount varies.

Up to 17%.

Up to 13% off auto.

Up to 10%.

*Discount according to insurer’s website. **USAA is available only to military, veterans and their families.

Should you bundle home and auto insurance?

To decide if you should bundle home and auto insurance, compare quotes for separate policies and bundled policies. If you find separate policies where the combined total is cheaper than one insurer's bundled rate, there’s no reason to buy them together.

Larger policies get steeper discounts in most cases. Since homes are worth more than cars, discounts on homeowners insurance tend to be higher.

That means bundling probably saves you the most money if your home insurance is expensive and your auto insurance is cheap.

But if you have accidents or tickets, poor credit or live in a state with high car insurance rates, auto coverage could easily be the more expensive policy. In this case, the savings from choosing the cheapest car insurance company could dwarf a 20% discount on a bundled home policy.

Your insurer may also slowly increase your premiums over time, which could offset your bundling discount.

Tips on better bundling

Take these steps to get the most value when bundling home and auto insurance:

  • Compare bundles from several insurers either online or with an agent. An independent insurance agent can get prices from multiple companies and help make sure you get the best rate.

  • Check for third parties. Ask if the insurer uses a third-party insurance company (sometimes called an affiliate) for either policy in your bundle. Although you may still save money, you lose the convenience because you won’t be dealing with one insurance company anymore.

  • Shop for quotes regularly. Your cost of home insurance and cost of auto insurance can change from year to year, so regularly getting quotes for both bundled and separate policies can help ensure you're always getting the best rate possible.

with Insure.com

See what you could save on car insurance

Easily compare personalized rates to see how much switching car insurance could save you.

Get started on Insure.com

Frequently asked questions

Are there cons to bundling home and auto insurance?

Bundling policies can usually get you a discount. However, it also discourages price shopping, which makes it easier for your insurer to inch up rates until you’re overpaying.

Some "bundled" policies also aren't really bundled. Auto insurers may set you up with a partner company for your home insurance, so you can't choose your own insurer and manage your bills in one place.

Is it always cheaper to bundle home and auto insurance?

No, it may not always be cheaper to bundle. If you have traffic violations, poor credit or live in a state with high insurance rates, it may actually be cheaper to shop for separate policies than to bundle them. See our guides to the best cheap car insurance and the best cheap homeowners insurance to shop for separate policies.

Can you bundle renters and auto insurance?

Yes, many companies offer renters insurance bundles and more, including condo insurance, life insurance and others. Check with your carrier to see the bundling options it offers.

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