Best Home and Auto Insurance Bundles
A money-saving option, but only under the right circumstances
“Bundling” is when you combine two or more policies with the same insurer, often for greater savings and convenience. Sometimes it can even come with extra perks. If you’re wondering whether it makes sense to bundle your home and auto insurance, you might also be curious about whether your current insurer will give you the best deal—or whether it’s time to switch to a new one that offers a better bundle.
Let’s take a closer look at some of the best companies that offer home and car insurance bundles. We’ll also explore when, why, and how to bundle to ensure you get the best value and coverage for your needs.
The Best Home and Car Insurance Bundles
|Insurer||Sample Annual Car Insurance Rate||Sample Annual Homeowners Insurance Rate||Savings with Bundling||Advertised Bundling Discount*||Total Bundled Cost|
|Progressive||$588||$1,150||4%||Average of 12% on car||$1,738|
|State Farm||$1,276||$789||24%||Up to 17% on car insurance
Up to 35% on homeowners
|GEICO||$1,243||$1,398||2%||3-8% on car||$2,641|
|Allstate||$1,176||$1,500||16%||Up to 25% on car insurance
Up to 10% on homeowners
|USAA**||$1,286||$1,509||7%||Up to 10% on homeowners
3-5% on car
*Advertised on insurer’s website or quoted by agent. Actual discounts may depend on location and other factors.
**Only current/former military members and their families are eligible.
Note: See “Methodology” below for more about the profiles we used to request these sample quotes.
How Much Can You Save by Bundling?
Depending on your insurer, bundling your home and car insurance could lead to significant savings. These sample quotes are based on the profile outlined in "Methodology" (below), and your rates and savings may differ based on your location, driving history, home construction, and more.
Other Companies That Let You Bundle
While the companies in our table above stood out for their bundling discounts as well as their coverage options, financial strength ratings, availability, and customer service, most insurance providers that sell both home and auto coverage will offer a bundling discount on one or both policies. You might also want to consider getting quotes from these insurers, whose discounts may vary based on your location and other factors:
- American Family: advertises up to 29% on car insurance and up to 20% on home insurance
- Amica Mutual: advertises up to 20%
- Erie Insurance: advertises 16% to 25%
- Farmers: varies
- Liberty Mutual: varies
- Root: varies
- Travelers: advertises up to 10% on car insurance, and home insurance discount varies
Why Bundle Home and Auto Insurance?
Bundling your home and car insurance policies can give you some handy benefits, such as:
- Savings: Insurers often offer discounts for combining policies, which is a common draw for customers. Some insurers offer premium discounts of 20% or more.
- Perks: You’ll often save in other ways or get additional benefits. It’s not uncommon to have a single deductible (the higher of the two from your policies) that counts for both insurance products when making claims. So if your house and car are both damaged after a storm, you won’t pay a separate deductible for each one.
- Convenience: Bundling brings two of your major policies under one roof, so you can manage them in the same account or app. Typically you’ll also have a single monthly bill. Less hassle and more simplicity can be a major benefit, especially if you need to make a claim.
- Brand loyalty: Maybe you’ve been with your car insurer for years, and now you’re about to buy your first home. Bundling is a great way to continue getting the same service and benefits from a company you already trust.
What To Watch Out for When Bundling
Despite all the benefits of bundling, you’ll want to watch out for some tricky details. As you consider whether bundling is right for you, be vigilant about:
- Discounts that don’t actually save you money: Some deals may not be all they’re cracked up to be, like getting 10% off a policy that’s still twice as expensive as a competitor’s regular premium. That’s why shopping around is a must. Before you buy any insurance, make sure to get a few quotes so you can compare bundled and unbundled rates and find the best value for your location and situation.
- Affiliate providers for part of the bundle: If your insurer uses an affiliate for one part of the bundle and its system isn’t well integrated with its partner, it can feel like you have policies with two separate companies. You could find yourself dealing with one customer service team, portal, bill, and more for your home insurance, and a completely different one for your auto policy—which may defeat at least part of the purpose of bundling. Make sure to read the fine print before bundling your policies.
- Rate creep: In a practice called price optimization, your car insurance rates might increase by as much as 25% at renewal, Robert Hunter, Director of Insurance at Consumer Federation of America told The Balance by phone. Why? If you’re a loyal customer, the company knows you’re not likely to leave or look at competitors. Comparison shopping helps you make sure your rates are still a good value, explained Hunter. It also lets companies know you’re price sensitive, and they may keep your rate low to keep you from leaving for a better deal.
- Price hikes due to claims: A single claim can raise your insurance premiums by as much as 10% for homeowners insurance and an incredible 42% for auto insurance. If you file multiple claims on either policy, you could be seen as a high-risk policyholder. Shopping around might yield lower quotes because insurers use proprietary algorithms and weigh factors differently. If you’ve had a few accidents, you might also be better served by an insurance company that specializes in high-risk drivers.
When To Bundle Home and Auto Insurance Policies
Under certain circumstances, it can make more sense to bundle your insurance policies. Think about bundling your coverage if you:
- Are newly married and want to combine your separate policies under one company.
- Have recently purchased a home and are curious whether you should buy home insurance from the same company that covers your car.
- Get a few quotes and realize you’ll save money by moving your policies to the same insurer while keeping the same (or better) coverage.
- Have higher-than-average home insurance premiums because of your home’s location, age, or other characteristics. High-risk homes may have trouble obtaining insurance, so you might be able to save more with bundling.
When To Skip Bundling
Combining home and auto policies might not be a good option if:
- You must sacrifice coverage to keep your policies under one provider.
- Early cancellation fees and penalties for leaving your current insurer eat away at the savings.
- Having separate policies with different insurers is cheaper than a bundled policy.
How To Bundle Home and Car Insurance
Most of the steps for bundling your home and auto insurance are the same as when you’re looking for a single policy: Read reviews, shop around, collect quotes based on your personal information, and compare them to see which coverage is right for you. The difference is that you’ll be reviewing two types of insurance at the same time, which can make it tougher to juggle all the information.
One of the most crucial things to remember when you’re thinking about bundling your policies is not to let your insurance lapse. The consequences of insurance lapses range from inconvenient to severe. For car insurance, a lapse can make it harder to find new coverage and could result in higher premiums, accident liabilities, or fines. If your home insurance lapses, your mortgage lender might apply its own policy (with higher premiums and less coverage than you might like). So make sure your new policies start on the same day, or even the day before, you cancel the old ones.
If you’re selling your home, your mortgage lender will require you to have coverage until you no longer own the property. That’s not the closing date, which might change—it’s the date that ownership transfers to the buyers. Then schedule your new policy to start on the day you gain ownership of your new home.
You can cancel your auto policy at any time, typically without fees, but check your policy disclosures to confirm. You probably won’t be so lucky with your home insurance policy, which may hit you with early cancellation penalties. Again, check your policy’s fine print before you make any decisions. It may be best to sign up for a home and auto insurance bundle just before your home insurance is set to expire.
The Balance strives to give consumers unbiased, comprehensive reviews of homeowners and auto insurance providers. To ensure that our content helps you make the right insurance decision for your needs, we review each insurance provider’s coverage options, discounts, customer service and satisfaction, and financial stability.
In addition, we look at the cost of a basic home and auto policy in a residential neighborhood in Illinois, a state whose average insurance premiums are close to the national average. We request home and auto quotes for the following profile:
- 35-year-old single female applicant with a mortgage
- Home insurance for five years
- No home insurance claims
- Arlington Heights, Illinois, residential neighborhood
- 1,500-square-foot home
- Built in 1971
- $300,000 building value
- $500,000 in liability
- $1,000 deductible
- 13,000 miles driven yearly
- 2018 Ford Explorer
- One accident in the last four years
We also include a number of other variables when asked, such as a 10-year-old roof upgrade. All of these factors were chosen to represent a consumer with an average home and vehicle. Your situation may be quite different, but our quote is not meant to cover every kind of situation, but rather give a sample of what premiums could be.