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How to save money bundling home and auto insurance

Profile picture of Jessica Render
by Jessica Render ConsumerAffairs Research Team
car parked in house driveway

Sometimes it can feel like insurance is required on everything: our homes, our cars — even our lives. Nobody likes shopping for insurance, but it’s worth your time and effort to consider all your options, especially if you’re in the market for home and auto coverage.

One way to make your life a bit less complicated is to bundle your insurance policies. Most providers offer discounts for customers who hold more than one policy with them. This can work to your benefit by simplifying your bills and reducing your premiums. Read below to learn what to be aware of and how bundling these policies may help you save money.

Benefits of bundling home and auto insurance

Most major insurance providers offer discounts for their customers, knowing not everyone will qualify for all of them. Some providers give discounts for certain professions, safe driving records, military service or good credit scores, but one of the biggest discounts can come from bundling your home and auto policies from the same provider.

Insurance providers are motivated to maintain their customer base as their insurance needs grow. One way they do this is by offering discounts for those who hold multiple policies with the same company. This benefits clients, as the more policies they add, the lower their rates will be. That said, just because your current provider is offering you a discount for adding a car or home policy, it doesn’t necessarily mean you’ll achieve the lowest overall premiums with that company.

Can you save money bundling home and auto insurance?

The amount you save by bundling depends on many factors, but one thing is almost always true: Your premiums are likely to go down when you combine auto and home policies with the same insurer. With these bundling discounts, customers can cut down their premiums by up to 25%.

It’s worth noting that providers base their rates on a number of factors. For home and auto insurance, providers will look at your credit score, your driving record, your ZIP code, the amount you drive and the age and condition of your home. Furthermore, you always have the option to customize each insurance policy for specific coverage and deductibles based on your needs. All these variables — along with the bundling discount and other savings opportunities — determine what your premiums are. In the table below, we outline the major insurance providers and tell you how much you’re likely to save with them by bundling.

Advantages of bundling

Bundling almost always works to your advantage because the total amount you pay when you have two policies with the same insurer will be lower than if you buy policies from separate providers. This is by far the biggest advantage of bundling.

Another advantage of bundling is that it keeps you organized. Because both your policies are with one provider, you only have one company to keep track of and only one contact for all your insurance needs. This can be helpful for homeowners and drivers who depend on their insurance agent for claims service and policy reviews.

Disadvantages to bundling

Even though most people can save money by bundling, this doesn't mean a different insurance provider won’t be able to offer you lower premiums than your current one. Providers know how easy it is to add a second or third policy if you’re an existing customer, and they're betting on the fact that you won’t shop around. Before you bundle you should always compare rates from at least two or three providers to see which can offer you the coverage you need at the best rate. It might not be your current provider.

Also, recognize that you shouldn’t automatically choose the provider with the higher bundling discount. Remember, there are a number of factors that go into determining your rate, and different insurers may be able to offer additional discounts that your current one can’t, bringing your total costs lower.

How to bundle home and auto insurance

The first step to bundling your home and auto insurance is to contact your current provider and ask for a quote for adding a new policy. If you're adding an auto policy, the company will need basic information about the car — the year, make, model and vehicle identification number— and what coverage you would like. If you're adding a homeowners policy, you'll have to provide information about the home, who lives there and the coverages you want. Make sure the updated quote for both policies includes not just a bundling discount but also other discounts you qualify for.

The next step is to shop around for quotes from at least two other insurance providers. Remember: Just because one provider offers a larger bundling discount doesn’t necessarily mean your overall premiums will be lower than with a different provider.

After you have obtained at least two or three quotes, compare the rates and coverage, read reviews about the different companies and choose the one that best fits your budget and needs.

What are the best companies for bundling home and auto insurance?

Below is a list of some of the biggest insurance providers and their bundling discounts. All referenced numbers are estimates based on averages. You should always contact a local agent for a quote specific to your location and circumstances.

CompanyBundling discount*
geico logoExact discount not advertised
erie insurance logo16% to 25% depending on state
state farm logoUp to 17%
progressive logoAverage of 4%
usaa logoUp to 10%
allstate logoUp to 10% off auto and 25% off home
aarp logoUp to 5% off auto and 20% off home
farmers logoAverage of 20%
liberty mutual insurance logoExact discount not advertised
nationwide logoUp to 20%
aaa logoUp to 15.7% on auto and 20% on home
travelers logoUp to 13% on auto and 12% on home
american family insurance logoUp to 29% on auto and 20% on home
the hartford logoExact discount not advertised

*Bundling discounts are as of the time of publishing. Terms and conditions may apply.

geico logoExact discount not advertised
erie insurance logo16% to 25% depending on state
state farm logoUp to 17%
progressive logoAverage of 4%
usaa logoUp to 10%
allstate logoUp to 10% off auto and 25% off home
aarp logoUp to 5% off auto and 20% off home
farmers logoAverage of 20%
liberty mutual insurance logoExact discount not advertised
nationwide logoUp to 20%
aaa logoUp to 15.7% on auto and 20% on home
travelers logoUp to 13% on auto and 12% on home
american family insurance logoUp to 29% on auto and 20% on home
the hartford logoExact discount not advertised

Bottom line: Should you bundle your home and auto insurance?

In general, you save money when bundling your home and auto policies under one provider, though the amount of savings varies by insurer. However, that doesn’t mean you shouldn’t shop around for quotes from multiple companies. Start by reaching out to your current home or auto insurance provider to ask about its bundling discount for adding another policy. Make sure you know what the specific savings are on each policy and the total price of both premiums. This will help you compare offers from other insurers eager to earn your business.

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Profile picture of Jessica Render
by Jessica Render ConsumerAffairs Research Team

As a member of the ConsumerAffairs research team, Jessica Render is dedicated to providing well-researched, valuable content designed to help consumers make informed purchase decisions they can feel confident making. She holds a degree in journalism from Oral Roberts University.