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 Reviewed by Brenda J. Cude

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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 homeowners insurance, you may get benefits like:

  • Lower premiums. 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. It's easier to manage 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 make it less likely the 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.

NerdWallet analyzed rates data from four of the largest home and auto insurance companies to find their median discounts for bundling home and car insurance. For this story, NerdWallet calculated averages using the median, which is the midpoint of the rates we examined.

However, not all companies or discounts may be available in your state, so check to see which option is best for you.


Median bundling discount

18% off.

17% off.

18% off.

25% off.

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 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, pricier policies get steeper discounts. So because home insurance policies typically cost more 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 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.

Frequently asked questions

Bundling policies can usually get you a discount. But because it’s so convenient, it can also discourage price shopping. In other words, if you don’t know what other companies charge, you may not realize if your insurer has been slowly raising your rates until you’re overpaying.

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

No, it may not always be cheaper to bundle house and car insurance. 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.

Insurance policies are written with each individual person in mind. As a result, the best bundling option for one person may not meet your coverage needs.

The best home and auto bundles come from companies with strong financial strength, great customer service and plenty of coverage options, so you may still find a good match for you. Our list of the best home and auto insurance bundles can help get you started in your search.

Yes, many companies offer renters insurance bundles and more, like condo insurance, life insurance and others. Check with your carrier (or shop around for other insurance providers) to find bundling options that will meet your needs.


NerdWallet calculated median rates based on public filings obtained by pricing analytics company Quadrant Information Services for four of the nation’s largest home and auto insurers: Allstate, Farmers, Nationwide and State Farm. We examined homeowners and auto insurance rates for 40-year-old men and women for all ZIP codes in all of the 50 states and Washington, D.C.

To calculate averages, we used the median, which is the midpoint of a dataset. This helps mitigate any issues, such as outliers that might skew the data, and provide a more accurate representation of the average.

Sample home and auto owners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.

Our sample policyholders were also “good drivers,” defined as having no moving violations on record; a “good driving” discount was included. They had the minimum required coverage by law in each state. Some policies include additional coverage at the insurer’s discretion.

We used a 2020 Toyota Camry L for all drivers and assumed 12,000 annual miles driven.

These are sample rates, and your own rates will be different.

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