How to bundle home and auto insurance policies to save money

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Bundling home and auto insurance is one of the easiest ways to lower your premiums, often saving 10% to 25% annually without reducing coverage. When you purchase both policies from the same insurer, you qualify for a multi-policy discount that reduces your total insurance costs while simplifying how you manage your coverage.

That said, bundling isn’t always the cheapest option. It depends on the insurer, your coverage needs, and individual policy rates. On average, drivers save 15% per year, or $973 based on our data.

Some companies like State Farm offer discounts of up to 22%, which works out to $1,184 annually. The key is comparing bundle quotes against separate policies to make sure you’re actually getting the best deal.

💡 Our recommendation: Shop around before you bundle

Bundling home and auto insurance can save you a good chunk of money — but the straightforward option isn’t always the cheapest option. Before switching, get at least three quotes from different insurers and compare the total annual cost of bundled versus separate policies. Make sure each quote uses the same coverage limits and deductibles so you’re comparing real value, not just advertised discounts

What are the benefits of bundling home and auto insurance?

Bundling home and auto insurance with the same provider can lower your premium, simplify your billing, and make you a more valuable customer to your insurer. The main benefits include:

Lower premiums. Drivers save 15% per year on average, or $973, with some insurers like State Farm offering discounts of up to 22% — $1,184 annually.
Simplified account management. One provider means one login, one bill, and one point of contact for claims or policy changes.
Less paperwork. You avoid juggling renewal dates, separate agents, and duplicate documentation across insurers.
Potential deductible savings. Some insurers waive or reduce your deductible when a single event — like a storm — damages both your home and vehicle.
Greater policy stability. Insurers are less likely to non-renew or drop customers who hold multiple policies with them.

Which companies offer the best home and auto insurance bundles?

The best home and auto insurance bundle companies include State Farm, Allstate, Farmers, and Nationwide, which offer discounts ranging from 10% to 22%. State Farm provides the highest savings in this comparison, with bundle discounts of up to 22%, or roughly $1,184 annually.

When comparing insurers, it’s important to look beyond just the discount and evaluate total premiums, coverage options, and deductibles. Based on our analysis, the following companies offer competitive bundle savings:

Company	Auto rate	Home rate	Total rate	Total rate after bundle	Total dollar savings	Bundle discount percent
Allstate	$4,660	$2,020	$6,680	$5,513	$1,167	17%
Amica	$4,077	$1,494	$5,571	$5,004	$567	10%
Farmers	$4,076	$2,781	$6,857	$5,533	$1,324	19%
Nationwide	$2,908	$2,968	$5,876	$4,887	$989	17%
Progressive	$3,032	$4,186	$7,218	$6,785	$433	6%
State Farm	$3,139	$2,336	$5,475	$4,291	$1,184	22%
Travelers	$2,243	$2,218	$4,461	$3,989	$472	11%
USAA*	$1,985	$2,400	$4,385	$4,048	$337	8%

*USAA is only available to military community members and their families.

💡Don’t assume your current insurer has the best bundle

Bundle discounts can vary by more than $800 per year between companies, which means loyalty doesn’t always pay off. Before renewing, get bundle quotes from at least two or three other insurers — even a small difference in discount percentage can add up to hundreds of dollars over the life of your policies.

How do home and auto bundle deals actually compare?

Bundling home and auto insurance isn’t automatically the cheapest option — it depends on how each insurer prices their policies. To compare accurately, look at total premiums, coverage levels, and deductibles across both bundled and separate policies to see which offers the lowest overall cost.

When comparing quotes, make sure each policy includes the same coverage limits and deductibles. A bundle discount can lower your premium, but a higher base price on one policy can easily cancel out those savings.

Here’s how the math works in practice:

Say you currently have two separate policies:

Auto insurance: $1,000/year
Home insurance: $1,200/year
Total: $2,200/year

Now imagine you move your home insurance to your auto insurer to bundle. The new home policy costs $1,500 — $300 more than what you pay now. Your new combined cost is $2,500, or $300 higher than your separate policies.

For bundling to save you money, the discount needs to do two things: erase that $300 increase and drop the total below $2,200.

If the bundle discount is $700: Your final cost is $1,800, saving you $400 compared to separate policies. ✅ Good deal.
If the bundle discount is $200: Your final cost is $2,300, which is $100 more than separate policies. ❌ Not worth it.

💡Match coverage before comparing prices

A cheaper policy isn’t a better deal if it comes with lower limits or higher deductibles. Before comparing premiums, confirm that each quote offers the same liability limits, deductibles, and optional coverages so you’re measuring true cost, not just sticker price.

How do auto and home insurance bundles work?

When you bundle your home and auto insurance with the same company, you receive a discount on both policies in exchange for combining your coverage. Each insurer calculates bundle discounts differently, but here’s what to know:

Most insurers apply a discount to both policies. You’ll typically see savings on your auto premium and your home premium, though the percentage may differ between the two.
Discount amounts vary by insurer and policy type. Some companies offer a bigger discount on home insurance, while others weigh the savings toward auto.
Your total savings depend on both policies. The best way to gauge your real discount is to look at the combined premium before and after bundling — not just the percentage off one policy.

According to Amy Harris of State Farm Insurance, it comes down to two words: simplicity and savings. “Let’s say you have auto insurance and homeowners insurance from two different companies,” she says. “This means you’re dealing with two different agents, paying two different bills – probably at two different times. And chances are, you’re paying more than you should.”

“Another key advantage is the potential for increased loyalty from the insurance provider,” says John Espenschied, owner of Insurance Brokers Group and an insurance veteran with more than 20 years in the industry. “Customers who bundle their policies are viewed as more valuable, leading to better customer service experiences and a lower likelihood of policy cancellation by the insurer, even after a claim.”

How to calculate your total bundle savings

To find your overall discount, add up the pre-discount premiums for both policies, subtract the total discount applied, and divide by the original total. The example below shows how a typical bundle might break down:

Policy	Rate	Discount in dollars	Discount in percent
Auto	$1,500	$195	13%
Home	$1,000	$160	16%
Total premium (pre-discount)	$2,500	—	—
Premium with discount	$2,145	$355	15%

In this example, the auto policy gets a 13% discount and the home policy gets 16%, but the blended bundle discount across both policies is 15% — or $355 in total annual savings.

How to bundle home and auto insurance

To bundle home and auto insurance, you’ll need to purchase both policies from the same insurer and apply a multi-policy discount. The key is comparing your current costs against bundled quotes before switching, so you’re confident the bundle actually saves you money.

Follow these steps to bundle the right way:

Add up your current costs. Calculate what you pay annually for your existing home and auto policies combined — this is the number your bundle needs to beat.
Review your current coverage. Note your liability limits, deductibles, and any optional coverages so you can compare quotes on an even playing field.
Get bundled and separate quotes. Request quotes from the same insurer for both bundled and standalone policies, using identical coverage levels. Repeat this with two or three other insurers to see the full range.
Compare total costs, not just discount percentages. A 25% discount on an overpriced policy can still cost more than a smaller discount on a competitively priced one. Focus on the final annual premium.
Purchase the new policy. Once you’ve confirmed the bundle offers the best overall value, move forward with the new coverage.
Cancel your old policies carefully. Only cancel your previous policies after your new coverage takes effect to avoid any lapse, which can raise your future rates and leave you unprotected in between.

💡Don’t cancel your old policy before the new one starts

Even a one-day gap in coverage can flag you as high-risk to future insurers, leading to higher premiums for years. It can also leave you financially exposed if an accident or loss happens during the gap — and drivers in most states face fines or license suspension for any lapse in auto coverage.

How can you maximize savings when bundling insurance?

One of the best ways to save money on home and auto insurance is to compare 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.

So, is bundling worth it for you?

Bundling home and auto insurance can lower your premiums, cut your paperwork, and make claims easier to manage — but it’s not automatically the cheapest choice. With average savings of 15% per year and some insurers offering up to 22%, the potential upside is real, but the actual payoff depends on your specific insurer, coverage, and policy details.

The only reliable way to know if bundling makes sense is to compare total costs — bundled versus separate — across multiple companies with identical coverage. If the bundled price beats your current total, go for it. If not, keeping your policies separate may still be the smartest financial move.

Frequently asked questions

Is it always cheaper to bundle home and auto insurance?

Bundling home and auto insurance is often cheaper, but not always. Savings depend on your insurer, location, and risk profile. In some cases, one company may offer low auto rates but higher home premiums, which can offset bundle discounts. That’s why it’s important to compare bundled quotes with separate policies before deciding.

When shouldn’t you bundle home and auto insurance?

You shouldn’t bundle if separate policies offer better pricing or coverage. Sometimes, bundling can lead to higher overall costs if one policy is overpriced. It’s also worth considering customer service, claims handling, and coverage options. Comparing multiple quotes helps ensure you’re not sacrificing value for convenience.

“It’s always crucial to compare offers and fully understand your specific insurance requirements before making a decision,” says Espenschied. “Insurance buyers should gather quotes for both bundled and separate policies from multiple providers, assess the coverage options, and consider factors beyond just the price, such as customer service, claim support, and the overall reputation of the insurers.”

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

To switch insurers, start your new bundled policy before canceling your existing one to avoid any coverage gaps. Once your new policy is active, contact your current insurer to cancel, effective the same day or the following day. This ensures continuous coverage and prevents potential penalties or higher future rates.

Methodology

Insure.com commissioned Quadrant Information Services to calculate average home and auto insurance rates and bundling discounts. The analysis includes data from all 50 states and Washington, D.C., across millions of quotes to provide a comprehensive view of pricing nationwide.

Auto insurance:

Analyzed across 1,252 cities and 4,686 ZIP codes
Includes 197 insurers grouped into 89 company groups
Based on a 40-year-old driver (male and female) with a clean record, driving a 2023 Honda Accord LX with 15,000 annual miles
Coverage: 100/300/100 liability with $500 collision and comprehensive deductibles
More than 11 million quotes analyzed

Home insurance:

Based on $300,000 dwelling coverage, $1,000 deductible, and $100,000 liability
Analyzed across 51 states, 10,042 counties, 29,159 cities, and 34,595 ZIP codes
Includes 134 insurers grouped into 75 company groups
More than 17.8 million quotes analyzed

Bundle savings were calculated by comparing the total cost of separate policies to bundled policies with multi-policy discounts applied, using consistent coverage levels and deductibles.

What our expert says

Q: Is saving money the only advantage of bundling policies?

John EspenschiedOwner of Insurance Brokers Group.

“Customers who bundle their policies are viewed as more valuable, leading to better customer service experiences and a lower likelihood of policy cancellation by the insurer, even after a claim.”

How much does home and auto bundle insurance cost in each state?

Bundling your home and auto insurance can help you save money, but the amount you save often depends on where you live. Insurance rates vary by state based on factors like weather risks, repair costs, and local crime rates. Below, you’ll find a state-by-state breakdown of average costs for a home and auto insurance bundle.

Alabama

$2,543/Year

Arizona

$2,478/Year

Arkansas

$3,119/Year

California

$2,866/Year

Colorado

$3,605/Year

Delaware

$1,952/Year

Florida

$3,408/Year

Georgia

$3,022/Year

Idaho

$1,993/Year

Illinois

$2,678/Year

Indiana

$2,437/Year

Iowa

$2,564/Year

Show more states

Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.