How to Save by Bundling Auto and Home Insurance

Bundling generally gives you a price break on both your auto and home insurance policies, but not always. It pays to shop around.
Auto Insurance, Homeowners Insurance, Insurance
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One of the easiest and most common ways to save money on your insurance is by bundling your auto and home insurance with one company.

Bundling is a common discount that generally gives you a price break on both your auto and home insurance policies.

Advantages of bundling insurance policies

The discount
Discounts for bundling vary by company and state but generally range from 10% to 20% for each policy.
Convenience
An insurance agent can review all your home and auto coverage in one sitting, and you’ll get one bill for the bundled policies.
Possible safety net
If your driving record takes a turn for the worse or you’ve made auto insurance claims, having all your policies under one roof might make it less likely your insurance company will drop you.

When bundling isn’t better

  • Although you might get a discount with one company by bundling your auto and home insurance, you might find it cheaper overall to buy from separate insurers.
  • Price isn’t everything; coverage matters, too. For example, you may find that your auto insurance company doesn’t provide the features you want or need in a homeowners insurance policy.

Bundling auto with renters or condo insurance: Many insurance companies offer discounts for bundling auto insurance with renters or condo insurance, but savings typically are smaller because those policies are cheaper than homeowners insurance.

Bundling with life insurance: Many large insurance companies offer life insurance as part of their bundling options, but you’ll lose the discount if you switch auto insurers later.

Tips on better bundling

  • Compare quotes for bundled policies from several insurers. An independent insurance agent can get prices from multiple companies. Agents who sell exclusively for one company can only offer discounts available with that insurer.
  • Ask if the insurer uses a third-party insurance company for either policy. Although you may still save money, you lose the convenience because you won’t be dealing with one insurance company anymore.
  • Regularly review whether your home and auto policies are still at an overall reasonable price compared with other options.