Best and cheapest companies for home and auto bundles in Alabama

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When you shop for home and auto insurance, some companies will have a better deal on bundled coverage than others. We compared multi-policy discounts from insurance companies in Alabama to determine which will give you the biggest price break when you purchase multiple types of coverage.

State Farm offers the biggest percentage break on your home and auto premiums in Alabama when you bundle. Bundle your policies with this insurance company, and it will cut your costs by an average of 27%.

Meanwhile, Allstate offers the cheapest overall rate when you bundle with the company in Alabama. On average, you will pay $2,543 when you bundle.

Key Takeaways

In Alabama, State Farm is the top choice for bundling home and auto insurance. It offers an average savings of 27%.
Some insurance companies offer more significant bundling discounts, so comparing quotes is a good idea.
Your ZIP code plays a major role in determining how much you can save on your home and auto insurance bundle.
Bundling is usually a smart move, but sometimes it might not be the best option.

How we picked the best companies for home and auto bundling

In 2024, we analyzed home and auto insurance rates provided by Quadrant Data Services, focusing on the average bundling discounts each company offers. We calculated both pre and post bundling insurance costs based on these average discount rates to provide a clear view of potential savings. Our analysis encompassed data from 48 insurance companies across 4,686 ZIP codes, delivering a comprehensive look at bundling benefits nationwide.

Our recommendation for the best home and auto bundles in Alabama

We assessed companies based on the average savings they offer for home and auto insurance bundles, considering both dollar amounts and percentage discounts. Here are the top insurance companies in Alabama for home and auto bundling.

State Farm

State Farm offers a 27% bundle discount, which amounts to an average savings of $1,245. The combined cost of home and auto insurance before the discount is $4,573, and after the discount, it drops to $3,328.

Allstate

The average bundle discount at Allstate is $492, or 16%. Without a bundle discount, customers pay $3,035 for coverage. After the bundle discount, customers pay $2,543 on average. Allstate ranked at No. 11 in our Best Auto Insurance Companies ranking and No. 5 in the Best Home Insurance Companies ranking.

Nationwide

Bundling auto and home insurance with Nationwide can save an average of $1,020, or 19%. Without the discount, the coverage costs $5,263, but after the discount, it’s only $4,243.

Farmers Insurance

The average bundle discount at Farmers Insurance is $815, or 17%. Before the discount is added, the average cost of home and auto insurance is $4,668. After adding the bundle discount, the average cost is $3,853. Farmers Insurance ranked at No. 12 in our Best Auto Insurance Companies ranking and at No. 8 in the Best Home Insurance Companies ranking.

Auto-Owners

The average bundle discount at Auto-Owners is $619, or 12%. Before getting a bundle discount, customers see average rates of $5,100 for coverage. With the bundle discount, customers see average rates of $4,481. Auto-Owners ranked at No. 2 in our Best Auto Insurance Companies ranking and No. 3 in the Best Home Insurance Companies ranking.

Compare home and auto bundles in Alabama

The amount you can save on home and auto insurance with a bundle in Alabama varies by company. Here is a breakdown of the rates and savings with top companies.

Company	Premium after Bundle	Auto and home bundling (Survey)	Home survey	A.M. Best Score	% Difference	Overall Rating
State Farm	$3,328	47	87.4	A++	27%	77.78
Allstate	$2,543	39	85	A+	16%	66.27
Nationwide	$4,243	42	86.6	A	19%	60.08
Farmers Insurance	$3,853	43	82	A	17%	59.09
Auto-Owners	$4,481	49	81.2	A++	12%	53.09

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What company offers the cheapest home and auto bundle in Alabama?

State Farm provides the largest discount on premiums for bundled insurance, while Allstate offers the lowest overall rate when you bundle.

Company	Home insurance premium	Auto insurance premium	Premium before Bundle	Premium after Bundle
Allstate	$1,151	$1,884	$3,035	$2,543
State Farm	$2,786	$1,787	$4,573	$3,328
Farmers Insurance	$2,360	$2,308	$4,668	$3,853
Nationwide	$4,096	$1,167	$5,263	$4,243
Country Financial	$3,764	$1,660	$5,424	$4,275
Auto-Owners	$2,934	$2,166	$5,100	$4,481

Most and least expensive ZIP codes for home and auto insurance bundles in Alabama

The ZIP code you live in can influence the discount you’ll get for bundling your coverage and the base rates before the discount is applied. Here’s a list of the most and least expensive ZIP codes in Alabama for bundling insurance.

Most expensive ZIP codes

The most expensive ZIP code in Alabama for bundling home and auto insurance is 36527, with an average cost of $4,548. Here are the 10 most expensive ZIP codes:

ZIP code	Average auto and home after discount	Average difference
36527	$4,548	19%
36526	$4,373	19%
36507	$4,349	19%
36567	$4,293	19%
35208	$4,231	19%
35218	$4,213	19%
36615	$4,204	19%
36602	$4,183	19%
36605	$4,178	19%
36582	$4,177	19%

Least expensive ZIP codes

The most affordable ZIP code in Alabama for bundling home and auto insurance is 36345, with an average rate of $3,365. Below are the 10 least expensive ZIP codes.

ZIP code	Average auto and home after discount	Average difference
36345	$3,365	19%
36352	$3,391	19%
36303	$3,398	19%
35242	$3,400	19%
36305	$3,404	19%
36301	$3,409	19%
35007	$3,414	19%
36093	$3,437	19%
36312	$3,442	19%
36376	$3,447	19%

Frequently asked questions about bundling home and auto insurance

Is bundling home and auto insurance right for everyone in Alabama?

Bundling your insurance can help you save money and make managing your policies easier. With one company handling everything, you can check all your coverages in one place.

However, bundling isn’t always the cheapest move. If you find a great deal on car insurance but your homeowners insurance is much more expensive with the same company, you might save more by getting separate policies from different insurers.

It’s also possible that a company has the right coverage for one type of insurance but not for the other.

Instead of assuming a bundle is the best deal, it’s always a good idea to shop around and compare quotes.

“Remember when buying insurance that you’re doing so to protect your most valuable assets,” says Christine O’Brien, president of the Insurance Council of New Jersey. “Take the time to learn about policy limits and coverages and get several quotes.”

How can you switch to a home and auto bundle in Alabama?

Switching to a bundled policy is simple, and many people take this step when their insurance comes up for renewal. For example, if your car insurance is with one company and your homeowners insurance with another, you can easily combine them under one insurer when it’s time to renew.

However, you don’t have to wait until renewal to bundle your policies. If you cancel one of your policies before it expires, you might get a refund for the months you won’t be covered by that insurer.

But before canceling coverage on any of your policies, make sure your new coverage is set up and active. Don’t cancel the old one until you’re fully covered.

Methodology

Insure.com analyzed rates and discount averages provided by Quadrant Data Services in 2024 fielded from all 50 states and Washington, D.C. Rates were compared based on average home and auto premiums before bundling and after bundling based on the average multi-policy discount offered by each insurance company. The average total rate after the discount was calculated by subtracting a dollar amount equal to the average discount percentage from the pre-discount total rate.

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Chris Kissell

Contributing Researcher

Specializing in insurance and personal finance, Chris Kissell is a writer and editor whose work has been featured at Forbes, U.S. News & World Report, MSN Money, Fox Business, Yahoo Finance, Bankrate and Money Talks News. He is based in Denver.