How to Save Money by Bundling Home and Auto Insurance – 2021

bundling home and auto insurance

How to Save Money by Bundling Home and Auto Insurance…

 

Many homes spend a lot of money on insurance because they do not know how to properly bundle home and auto insurance. Bundling usually gives a price break on home and auto insurance policies, but sometimes it is beneficial to shop around.

One of the best ways to save money on insurance is to buy your home and auto insurance from one company. This option is known as “bundling” and it gives you a discount when you get more than one policy from the same insurer.

What are the benefits of bundling home and auto insurance?

Most insurers offer the option to bundle multiple products together. Depending on your insurer, bundling may be referred to as multipolicy, multiline or multiproduct discount.

Bundling your home and auto insurance comes with benefits that can include:

#1. Increased savings.

#1. Increased savings.

#3. Insurance security.

#1. Increased savings.

A multipolicy discount could save you as much as 25%, depending on the company and where you live.

#2. Simplified policy management.

You should have less of a hassle managing multiple policies when they come from the same company.

#3. Insurance security.

If you’ve made auto insurance claims or gotten tickets, having other policies with the same company can lower the chances your insurer will drop you.

Home and auto insurance bundles by company

Many insurers offer bundling discounts, but how much you save depends on where you live and the company that insures you.

The table below features the 10 largest auto insurance companies by market share, all of which offer multipolicy discounts. Not all companies or discounts may be available in your state.

Company  Bundling discount* 
Allstate  Up to 25% off. 
American Family  Up to 29% off auto, and up to 20% off home. 
Farmers Insurance  Discount varies. 
Geico  Discount varies. 
Liberty Mutual  Discount varies. 
Nationwide  Up to 20%. 
Progressive  Discount varies. 
State Farm  Up to 17%. 
Travelers  Up to 13% off auto. 
USAA**  Up to 10%. 

*Discount according to insurer’s website.
**USAA is available only to military, veterans and their families.

» MORE: Auto and Car Insurance Explained 2021

Should i bundle home and auto insurance?

To decide if you should bundle home and auto insurance, compare quotes for separate policies and bundled policies. If you find separate policies where the combined total is cheaper than one insurer’s bundled rate, there’s no reason to buy them together.

Larger policies get steeper discounts in most cases. Since homes are worth more than cars, discounts on homeowners insurance tend to be higher.

That means bundling probably saves you the most money if your home insurance is expensive and your auto insurance is cheap.

But if you have accidents or tickets, poor credit or live in a state with high car insurance rates, auto coverage could easily be the more expensive policy. In this case, the savings from choosing the cheapest car insurance company could dwarf a 20% discount on a bundled home policy.

Your insurer may also slowly increase your premiums over time, which could offset your bundling discount.

» MORE: What is Auto Vehicle Insurance?

Pros and Cons of Bundling Home and Auto insurance

Pros

The benefits of bundling home and auto insurance include:

  1. Bundling car insurance discounts typically offer significant savings on your home and auto policy. Allstate offers a home and auto insurance bundle that gives customers up to 10% off car insurance and 25% off home insurance rates.
  2. Bundling often allows you to manage multiple insurance products in one online account and mobile app. Nationwide’s highly-rated app, for instance, allows policyholders to manage their home and auto policies in one place.
  3. You might be able to combine bills if you bundle home and auto insurance, which means you’ll only receive one bill for both policies each billing cycle.
  4. You could qualify for a single deductible, which typically means that if both your car(s) and home are damaged in a single event — e.g., a storm collapsing your roof onto your garage and parked car, for example — you will only pay one deductible for all the damage. Details will vary by insurer.

Cons

The downsides often encountered with bundling include:

  1. Not all insurers offer both home and auto policies, which means bundling might not be an option.
  2. If you have specific needs for your home insurance, bundling may not be an option for you. For instance, if your home policy was switched to a high-risk home insurance company after making a personal liability claim, you may not be able to bundle your auto policy.
  3. A car insurance company may set you up with a partner company that sells home insurance and call it a “bundled” policy. However, holding policies with separate insurers means you won’t be able to manage your policies all in one place.
  4. Bundling home and auto policies may hamper you from shopping around. Your current insurer may allow you to bundle policies – but that doesn’t automatically mean you’re getting the best deal available.

How To Bundle Home and Auto Insurance Profitably

Follow these steps to maximize your savings with a car and homeowners insurance bundle:

  1. Know your coverage. Review your current policies to know how much coverage you have. That way, you can get quotes for the same coverage limits.
  2. Get quotes. Contact your current insurance company. Then comparison shop with three or more other insurance companies for home and auto coverage. Ask for bundle quotes and individual quotes to compare.
  3. Ask about discounts and deductibles. Ask which discounts they offer so you can save the most. Some companies also offer a single deductible for your home and car if both are damaged in the same incident.
  4. Shop annually. Rates frequently change, so complete this process every year or two to ensure you’re getting the best deal.

Pro tips on better bundling

Take these steps to get the most value when bundling home and auto insurance:

  1. Compare bundles from several insurers either online or with an agent. An independent insurance agent can get prices from multiple companies and help make sure you get the best rate.
  2. Check for third parties. Ask if the insurer uses a third-party insurance company (sometimes called an affiliate) for either policy in your bundle. Although you may still save money, you lose the convenience because you won’t be dealing with one insurance company anymore.
  3. Shop for quotes regularly. Your cost of home insurance and cost of auto insurance can change from year to year, so regularly getting quotes for both bundled and separate policies can help ensure you’re always getting the best rate possible.

» MORE: Selling an Upside Down Car to CarMax in 2021

Frequently asked questions

Are there cons to bundling home and auto insurance?

Bundling policies can usually get you a discount. However, it also discourages price shopping, which makes it easier for your insurer to inch up rates until you’re overpaying.

Some “bundled” policies also aren’t really bundled. Auto insurers may set you up with a partner company for your home insurance, so you can’t choose your own insurer and manage your bills in one place.

Is it always cheaper to bundle home and auto insurance?

No, it may not always be cheaper to bundle. If you have traffic violations, poor credit or live in a state with high insurance rates, it may actually be cheaper to shop for separate policies than to bundle them. See our guides to the best cheap car insurance and the best cheap homeowners insurance to shop for separate policies.

Can you bundle renters and auto insurance?

Yes, many companies offer renters insurance bundles and more, including condo insurance, life insurance and others. Check with your carrier to see the bundling options it offers.

Recommended

Auto and Car Insurance Explained 2021

What is Auto Vehicle Insurance?

How To Get Amazon Prime For Free Forever | 2021 Hack

Selling an Upside Down Car to CarMax in 2021

This site uses Akismet to reduce spam. Learn how your comment data is processed.