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 to reduce the total cost of your insurance premiums. While most people bundle auto and homeowner policies, you can also bundle other types of insurance, 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 $700, based on our home and auto insurance rate analysis. Of the companies available nationally, State Farm had the best bundle discount. State Farm’s bundle discount is 25%, with savings of about $1,036 annually.

Our recommendation

Shop around; bundling insurance policies can save you 25% or more on your home and auto insurance. But it’s not always the cheapest option. So, look around. Experts always advise consumers to get at least three quotes before buying an insurance policy.

Advantages of bundling home and auto insurance

Why should you bundle my home and auto insurance? 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. Bundling is a way to simplify that picture, bringing all your coverages together in one place to save you time, effort and money.”

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

Key Takeaways

According to our home and auto insurance bundle rate analysis, the average savings from a home and auto bundle is 15%, or just over $700.
Among those we surveyed, Indiana Farm Bureau offers the highest discount of 28% for bundling home and auto insurance.
Bundling makes it easier to manage your policy and reduces the amount of paperwork you have to do.
Bundle your home and auto policies with one company to save on your insurance.

In addition to reducing your insurance rates, bundling your home and auto insurance can help in other ways.

It may 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.

You can benefit from greater insurance security. When you have multiple policies with a single insurance provider, that provider is less likely to drop you if you get a ticket or have to file a claim.
Payments are easier. When you have multiple policies with a single insurance company, you only have to make one payment to one company. It saves you from having to contact multiple providers just to pay your insurance premium.

“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.”

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 our home and auto insurance bundle comparison, the following companies offer bundle savings up to 28%.

Company	Auto Rate	Home Rate	Total Rate	Total Rate after Bundle	Total $ Savings	Bundle Discount %
Indiana Farm Bureau	$2,153	$4,414	$6,567	$4,728	$1,839	28%
Vermont Mutual	$1,413	$943	$2,356	$1,743	$613	26%
Grange Mutual	$986	$2,876	$3,862	$2,897	$966	25%
State Farm	$1,975	$2,169	$4,144	$3,108	$1,036	25%
Nationwide	$1,548	$2,746	$4,294	$3,349	$945	22%
Oklahoma Farm Bureau	$3,295	$4,225	$7,520	$5,866	$1,654	22%
Safety	$1,517	$1,775	$3,292	$2,568	$724	22%
Pemco Mutual	$1,326	$1,079	$2,405	$1,900	$505	21%
The Hanover	$2,082	$3,185	$5,267	$4,161	$1,106	21%
CSAA	$2,600	$1,355	$3,955	$3,164	$791	20%
NYCM	$1,300	$1,132	$2,432	$1,946	$486	20%
Allstate	$2,509	$2,098	$4,607	$3,778	$829	18%
Automobile Club MI	$1,616	$1,990	$3,606	$2,957	$649	18%
Country Financial	$1,680	$3,669	$5,349	$4,386	$963	18%
Farmers	$2,387	$3,194	$5,581	$4,576	$1,005	18%
Alfa	$3,225	$3,517	$6,742	$5,596	$1,146	17%
Erie	$1,480	$2,183	$3,663	$3,040	$623	17%
Iowa Farm Bureau	$2,272	$3,799	$6,071	$5,039	$1,032	17%
American Family	$1,698	$2,504	$4,202	$3,530	$672	16%
Arbella	$1,708	$1,547	$3,255	$2,734	$521	16%
Cincinnati Financial	$1,624	$2,248	$3,872	$3,252	$620	16%
Frankenmuth	$2,391	$1,629	$4,020	$3,377	$643	16%
Kentucky Farm Bureau	$2,113	$6,071	$8,184	$6,875	$1,309	16%
MMG	$1,306	$1,568	$2,874	$2,414	$460	16%
Shelter	$1,969	$3,972	$5,941	$4,990	$951	16%
Amica Mutual	$2,216	$2,000	$4,216	$3,584	$632	15%
Auto Club Enterprises (AAA)	$2,301	$1,577	$3,878	$3,296	$582	15%
Farmers Mutual of Nebraska	$1,941	$4,044	$5,985	$5,087	$898	15%
North Star	$2,283	$2,032	$4,315	$3,711	$604	14%
Southern Farm Bureau	$1,984	$3,285	$5,269	$4,531	$738	14%
Plymouth Rock	$1,581	$2,040	$3,621	$3,150	$471	13%
Auto-Owners	$1,553	$2,160	$3,713	$3,267	$446	12%
Mercury Gen	$2,314	$1,388	$3,702	$3,258	$444	12%
Michigan Farm Bureau	$2,911	$6,265	$9,176	$8,075	$1,101	12%
Progressive	$1,998	$3,193	$5,191	$4,568	$623	12%
Travelers	$1,587	$3,701	$5,288	$4,706	$582	11%
Indiana Farmers Bureau	$1,604	$1,679	$3,283	$2,955	$328	10%
Western National Mutual	$2,600	$1,549	$4,149	$3,734	$415	10%
Westfield	$1,855	$2,581	$4,436	$3,992	$444	10%
Nodak Mutual	$2,233	$2,562	$4,795	$4,363	$432	9%
Farm Bureau	$1,652	$3,017	$4,669	$4,295	$374	8%
IMT Mutual Holding	$1,634	$2,326	$3,960	$3,643	$317	8%
Island	$1,771	$663	$2,434	$2,239	$195	8%
Tennessee Farmers	$1,355	$2,325	$3,680	$3,386	$294	8%
New Jersey Manufacturers	$1,318	$985	$2,303	$2,165	$138	6%
North Carolina Farm Bureau	$1,217	$1,891	$3,108	$3,015	$93	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 new home insurance policy costs $1,500, or $300 more than your current cost.
Your total rate 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 policies totaling $2,200 – a good deal.

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

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.

“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?

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

Conclusion

Bundling your home and auto insurance doesn’t just mean greater convenience. It can also save you a lot of money in insurance premiums. Many insurers can provide reliable home and auto insurance coverage at a reasonable price and with an extra bundle discount to help save you money on your total insurance costs. However, not all insurance companies offer the same bundle discounts. Each company has its own method of calculating bundle discounts, so shop around and find the one that works best for you.

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.”

Lena Borrelli

Contributing Researcher

Insurance expert Lena Borrelli is a freelance writer specializing in personal finance, insurance and business management. She creates clear, actionable content that helps readers make smart financial decisions—from choosing the right car insurance to managing everyday expenses.