How to Bundle Auto and Home Insurance

Bundling auto and home insurance can usually save you money, but sometimes it makes sense to keep the policies separate.
Drew Gula
By Drew Gula 
Edited by Lacie Glover

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Everyone is looking for ways to cut costs these days. And while home and auto insurance policies are pretty important (not to mention required in many cases), they can also eat up a big piece of your budget. 

One option that might help you save money is bundling your auto and home insurance together. Here’s how it works.

What is an insurance bundle?

Buying your home and auto insurance from the same company is known as "bundling," and it usually gives you a discount. Think of it as an easy and popular way to cut costs without cutting coverage.

The good news is that bundling is pretty common. 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.

If you bundle car and house insurance, you may get benefits like:

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

  • Simplified policy management. You could have an easier time 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 because of those incidents.

Home and auto insurance bundle discounts

How much you can save when you bundle auto and home insurance depends on where you live and the company that insures you.

The table below features the 10 largest auto insurance companies by market share, according to the most recent data from the National Association of Insurance Commissioners, and all of them offer multipolicy discounts. However, not all companies or discounts may be available in your state, so check to see which option is best for you.

Company

Bundling discount, according to company website

Up to 25% off.

Up to 23% off when you bundle auto and home insurance together.

20% on average.

Discount varies.

Discount varies.

Up to 20%.

New customers can save 20% on average.

Discount varies.

Up to 10% off auto insurance and 15% off home insurance.

Up to 10%.

*USAA home and auto insurance is available only to military, veterans and their families.

Should you bundle home and auto insurance?

Bundling home and car insurance together may save you money, but in some cases it might not. To decide if bundling makes sense for you, compare the quotes for separate home and auto policies to quotes for bundled policies. If separate policies are cheaper than what you’d pay for a bundled rate, there’s no reason to buy them together.

Bundling will probably save you the most money if your home insurance is more expensive than your auto insurance. In most cases, larger policies get steeper discounts. So because home insurance policies are typically larger than car insurance, discounts on homeowners insurance tend to be higher.

But if you have violations on your driving record, poor credit or live in a state with high car insurance rates, your auto insurance 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. It all just comes down to your unique situation.

🤓Nerdy Tip

Your insurer may slowly increase your premiums over time, which could offset a home and auto bundling discount. If that happens, it might not make sense to bundle policies anymore. We recommend shopping for separate home and auto policies once a year to see if bundling continues to be the most affordable option.

Bundling tips

If bundling auto and homeowners insurance makes sense for you, take these steps to maximize savings:

  • Compare bundles from different 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 you want to bundle. Although you may still save money, you’ll lose convenience because you won’t be dealing with just one insurance company.

  • Shop for quotes regularly because the cost of home insurance and the cost of auto insurance can change from year to year. Getting new insurance quotes for both bundled and separate policies can ensure you're getting the best rate possible.

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