How to bundle home and auto insurance policies to save money

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Getting all of the insurance you need can get expensive, but bundling multiple insurance policies is an easy way to save money without sacrificing coverage. When you purchase more than one type of insurance from a single carrier, a bundle discount may be applied in order to reduce the total cost of your insurance premiums. While most people bundle auto and homeowner policies, you can bundle other types of insurance, too, like renters, condo, motorcycle, and boat insurance.

In fact, the average savings of a home and auto bundle is 15% per year, or a little more than $600, based on an Insurance.com home and auto insurance quote analysis. Of the companies available nationally, State Farm had the best bundle discount. State Farm’s bundle discount is 25%, with savings that equal about $903 per year.

Advantages of bundling home and auto insurance

In addition to reducing your insurance rates, bundling your home and auto insurance may also help you save on deductibles. For example, some companies only require policyholders to pay the highest deductible on their bundled policies if multiple assets are damaged in the same event. For instance, if a tornado damages your house, car and boat, you will pay the highest single deductible. The other deductibles are waived.

Bundling multiple policies is also convenient — it reduces the amount of paperwork and simplifies policy management. You are spared from dealing with multiple insurers and if you have a claim, you only need to call one company.

Key Takeaways

According to an Insure.com 2021 home and auto insurance bundle quotes analysis, the average savings from a home and auto bundle is 17%, or about $730.
Among those surveyed by Insure.com, Nationwide offers the highest discount of 29% for bundling home and auto insurance.
Bunding simplifies your policy management and reduces the amount of paperwork for you.
To save on your insurance bundle your home and auto policies with tone company.

Best home and auto insurance bundle companies

When you shop for home and auto insurance, it is best to find insurance companies that offer outstanding coverage at an affordable price.

According to Insurance.com’s 2022 home and auto insurance bundle comparison, the following companies offer higher-than-average bundle savings. We also compare customer service based on the customer satisfaction index rankings available in J.D. Power’s 2022 U.S. Insurance Shopping Study.

Company	Auto Rate	Home Rate	Total Rate	Total Rate after Bundle	Total $ Savings	Bundle Discount %
Indiana Farm Bureau	$1,735	$3,099	$4,834	$3,497	$1,337	28%
Vermont Mutual	$1,627	$868	$2,495	$1,845	$650	26%
State Farm	$1,397	$2,156	$3,553	$2,650	$903	25%
Grange Mutual	$2,511	$2,012	$4,523	$3,393	$1,130	25%
Oklahoma Farm Bureau	$2,451	$3,844	$6,295	$4,879	$1,416	22%
Nationwide	$1,626	$2,410	$4,036	$3,160	$876	22%
Safety	$1,186	$1,841	$3,027	$2,370	$657	22%
The Hanover	$4,114	$2,847	$6,961	$5,483	$1,478	21%
Pemco Mutual	$1,271	$840	$2,111	$1,668	$443	21%
Tower	$2,348	$1,168	$3,516	$2,802	$714	20%
NYCM	$2,993	$1,000	$3,993	$3,197	$796	20%
CSAA	$2,724	$3,391	$6,115	$4,905	$1,210	20%
Farmers	$2,323	$3,052	$5,375	$4,390	$985	18%
Allstate	$2,884	$1,870	$4,754	$3,906	$848	18%
Automobile Club MI	$2,704	$1,677	$4,381	$3,602	$779	18%
Country	$1,481	$2,630	$4,111	$3,389	$722	18%
Pekin	$1,065	$1,987	$3,052	$2,516	$536	18%
Erie	$1,388	$2,014	$3,402	$2,810	$592	17%
Palisades	$1,613	$1,757	$3,370	$2,795	$575	17%
Iowa Farm Bureau	$1,858	$2,873	$4,731	$3,927	$804	17%
Alfa	$2,471	$4,227	$6,698	$5,587	$1,111	17%
Pennsylvania National	$1,405	$867	$2,272	$1,900	$372	16%
Cincinnati Financial	$1,550	$1,673	$3,223	$2,696	$527	16%
American Family	$1,710	$2,761	$4,471	$3,744	$727	16%
Kentucky Farm Bureau	$2,166	$4,833	$6,999	$5,862	$1,137	16%
MMG	$1,039	$1,657	$2,696	$2,267	$429	16%
Frankenmuth	$1,746	$1,429	$3,175	$2,672	$503	16%
Arbella	$1,722	$1,478	$3,200	$2,695	$505	16%
Shelter	$2,634	$3,103	$5,737	$4,844	$893	16%
Pioneer State Mutual	$2,291	$1,462	$3,753	$3,171	$582	16%
Amica Mutual	$4,349	$2,444	$6,793	$5,749	$1,044	15%
Auto Club Enterprises (AAA)	$2,803	$1,620	$4,423	$3,751	$672	15%
Quincy Mutual	$1,517	$1,298	$2,815	$2,391	$424	15%
Union Mutual Fire	$1,086	$998	$2,084	$1,771	$313	15%
Farmers Mutual Of Nebraska	$1,351	$2,672	$4,023	$3,424	$599	15%
Concord	$846	$928	$1,774	$1,510	$264	15%
North Star	$2,224	$1,851	$4,075	$3,511	$564	14%
Southern Farm Bureau	$1,748	$2,577	$4,325	$3,739	$586	14%
Plymouth Rock	$1,292	$827	$2,119	$1,841	$278	13%
Michigan Farm Bureau	$2,493	$1,762	$4,255	$3,732	$523	12%
Auto-Owners	$1,862	$2,199	$4,061	$3,569	$492	12%
Progressive	$1,745	$1,670	$3,415	$3,011	$404	12%
American Farmers & Ranchers	$1,926	$3,536	$5,462	$4,821	$641	12%
Mercury Gen	$2,222	$1,136	$3,358	$2,968	$390	12%
Rural Mutual	$1,418	$1,151	$2,569	$2,281	$288	11%
Travelers	$1,589	$2,671	$4,260	$3,804	$456	11%
Western National Mutual	$1,795	$1,495	$3,290	$2,953	$337	10%
Indiana Farmers Mutual	$1,267	$1,192	$2,459	$2,214	$245	10%
Westfield	$1,536	$1,716	$3,252	$2,934	$318	10%
Nodak Mutual	$2,419	$2,448	$4,867	$4,418	$449	9%
Co Operative	$1,075	$1,321	$2,396	$2,187	$209	9%
Tennessee Farmers	$1,371	$2,320	$3,691	$3,378	$313	8%
Farm Bureau	$1,980	$714	$2,694	$2,467	$227	8%
IMT Mutual Holding	$1,740	$1,546	$3,286	$3,016	$270	8%
Island	$1,670	$594	$2,264	$2,087	$177	8%
New Jersey Manufacturers	$1,728	$727	$2,455	$2,314	$141	6%
Texas Farm Bureau Mutual	$1,377	$2,146	$3,523	$3,353	$170	5%
AmTrust	$1,649	$1,506	$3,155	$3,007	$148	5%
North Carolina Farm Bureau	$1,128	$1,640	$2,768	$2,681	$87	3%

Home and auto insurance bundle comparison

Comparison shop home and auto insurance bundled quotes if you’re looking for the best deal.

When comparing prices from different companies, make sure the coverage and deductibles are equal.

Bundling insurance doesn’t always save you money. Sometimes buying separate policies from two different insurance companies costs less than the total you pay for two bundled policies with a discount.

For example:

If you currently pay $1,000 for auto insurance from one company and $1,200 for home insurance from another, that totals $2,200.
Let’s say you decide to buy your home insurance from your auto insurer. The cost for the new home insurance policy is $1,500, or $300 more than your current cost.
Your total rate under the bundle would be $2,500, a $300 increase over what you pay now.
That means you’d need a bundle discount of at least $400 to $500 to lower the total bundle rate enough to save money compared to the price you currently pay for separate policies.
So, if your discount on the bundled policy total of $2,500 is, say, $700, you’re paying $1,800. That’s $400 less than the two separate policy total of $2,200 – a good deal.

That’s why you should compare insurance quotes for discounted bundled policies to what you’re paying for separate policies.

QuickTake

What does it mean to "bundle" my insurance policies?

How do auto and home insurance bundles work?

Each company may have a different way of calculating bundle discounts. When you bundle your insurance, it could be calculated in different ways based upon the following.

Typically, there are discounts on both auto insurance and home insurance policies.
The exact discount may vary based on the type of insurance you buy.
You may find that some companies offer a larger discount for certain types of insurance, whether it is home or car insurance.

The best way to determine your overall savings is to compare the total premium to the discount offered for each type of insurance. That will help highlight the total premium amount, as well as the total savings. Then, you can calculate the percentage of your overall bundling savings.

In the example below, you’ll see the overall home and car insurance bundle discount is 23%.

Policy	Rate	Discount $	Discount %
Auto	$1,500	$375	25%
Home	$1,000	$190	19%
Total premium; pre-discount	$2,500	–	–
Premium with discount	$1,935	$565	23%

How to bundle home and auto insurance

If you are happy with a current insurance provider, ask if there are any bundle discounts available if you bring other policies over. Many of the best insurance companies offer some kind of bundle discount when you purchase more than one type of insurance. You can then compare bundle discounts to find the most competitive offer that will save you the most money.

If you decide to bundle your coverage, these steps can help:

Add up how much you currently pay for each separate policy.
Review the specific coverage limits on your policies.
Obtain a quote for both bundled and unbundled rates from the new company. Be sure to compare policies with identical coverage amounts.
Compare the total discounted bundle quote to the total you pay for two separate policies.
If you are happy with the savings and decide to bundle, buy the new policy, noting the effective date.
Notify your previous insurer that you will be canceling the policy on the day after your new policy takes effect to avoid a lapse in coverage.

Other ways to save when bundling home and auto insurance

One of the best ways to save money on home and auto insurance is to comparison-shop home and auto insurance bundles. Make sure to look at rates from at least three different carriers so you know you’re getting the best possible rate. And be sure to compare the same amount of coverage and deductibles for an even analysis.

However, bundling insurance does not always save you money. There are times when buying two separate policies from different insurance companies is more affordable than two bundled policies — even with discounts.

Consider your vehicle. Some cars and trucks may be cheaper to insure than others, so it may be worth switching to another model that is safer and more affordable.
Change your deductible. If you increase your deductible, it could save you up to 40% or more.
Check your credit score. A good credit score can help save you money with lower rates, so be sure to pay your bills on time.
Consider other discounts. Most insurance companies offer a plethora of insurance discounts, whether it is for having a new car, being a safe driver, or having low annual mileage.

Frequently asked questions

Is it always cheaper to bundle home and auto insurance?

It is often cheaper to bundle your insurance policies together, but not always. High rates in certain states and traffic violations can make it more expensive for some drivers.

Additionally, one company may be cheap for auto, but not for home. That is why it is important to shop around.

When shouldn’t you bundle home and auto insurance?

Bundling home and auto insurance is a great idea, but some people may find that bundling policies is not the best option for them.

Bundling may seem like a good idea at first, but you might be missing out on the best coverage for your needs. If there is a cheaper option available somewhere else, bundling could lead to paying more than necessary.

How do you cancel your insurance and bundle with another company?

Make sure to cancel your insurance the day your new policy becomes active.

Lena Borrelli

Contributing Researcher

Lena Borrelli is a freelance writer from sunny Tampa Bay who has worked with such leading industry titans as Gronk Fitness, Morgan Stanley, Wells Fargo and Simon Corporation. Her work has most recently been published on sites like TIME, Microsoft News, Bankrate, Investopedia, Fiscal Tiger, The Simple Dollar, ADT and Home Advisor.