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Should You Bundle Your Home and Auto Insurance?


Insurance bundling is frequently offered as a way to save money on your insurance products. Bundling is when a policyholder has two or more policies held with the same insurance provider.

  • Insurance companies offer bundling as a means to encourage their customers to hold all of their policies with one company—this is more efficient for the consumer and the insurer
  • The amount you can save will vary from one insurer to the next, and the state in which you live can also be a factor in how much you can save, but generally speaking the amount of savings is anywhere from 5% to 25% on your premiums

If you have more than one type of insurance policy, bundling your home and auto insurance may be in your best interest. You could save up to 20%* by combining your insurance quotes.

What Is Insurance Bundling?

Bundling is when a policyholder has two or more policies with the same insurance provider, a process that is typically incentivized by insurers offering a discount on premiums.

Since many people have more than one type of insurance product, bundling offers a fast and easy way to reduce the cost of premiums with very little effort. When you have multiple things to insure, you’ll need separate policies for each item. Insuring your residence, vehicles, valuable personal property, life and health (including dental and vision) are all opportunities to bundle your policies.

These lines of insurance coverage are designed to protect you from suffering a financially catastrophic event. Some insurers specialize in property insurance, while others offer a wide range of insurance products that also include life and health insurance policies.

When you bundle insurance, you are getting multiple policies from a single insurer.

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Why Do Insurers Bundle Policies?

Bundling is an easy way to encourage people to combine all of their policies with one company, meaning the insurer will receive premiums from you for multiple “lines” of insurance. It also  saves time and is more efficient for both you and the insurance company.

Think about all of the things you need to keep track of with separate policies: different payment dates, renewal times, websites, logins and more. If you have multiple products insured (such as a home, a car and a motorcycle), having three different providers could become a hassle. Having all three products insured with the same provider means you can access the same website for payments, policy changes and claims — all in one convenient place.

Bundling can also save you time if you need to make a claim. If a storm causes a tree to hit your garage and both the garage and your vehicle in it are damaged, you have two claims:

  1. A homeowners policy claim for the damage to an attached structure (such as the garage).
  2. An auto policy claim for the damage to your vehicle.

If your policies are not bundled, you will be making two calls to two different insurance companies — and explaining the details twice.

Can Bundling Really Save You Money?

Yes, bundling can save you money.The benefit to insurance companies is considerable, so it is very likely that you could save money when you bundle policies.

As with any policy, insurers consider a number of factors when setting rates. Where you live, your zip code, your age, the amount you’ve set as your deductible: All of these factors still come into play whether you are bundling policies or not.

Depending on the insurer, you can generally save anywhere from 5% to 25% on your premiums by choosing to bundle your insurance policies

Because rates can vary substantially from one state to the next, how much you’ll save by bundling can vary, too. Hurricanes along the coast in Texas and Florida and wildfires in California and Arizona have impacted homeowners insurance rates considerably, so bundling in those states might differ as well.

It is also important to remember that your claims history will contribute to your bundled insurance quote. If you’ve had a bunch of moving violations, been in an accident or had recent homeowners insurance claims, the amount you could save on your home and car insurance bundle might be limited.

What Types of Insurance Can Be Bundled?

If your insurer offers different lines of insurance, they likely offer the option to bundle them together — potentially saving you money.  Combining home and auto insurance is the most popular type of insurance bundling, but there are others. A car and renters insurance bundle is another popular option if you are a renter. Having your property covered with an auto and renters insurance bundle is a smart move, and it might also be required by your landlord.

For some, bundling car and motorcycle insurance might make the most sense. Any family with multiple cars at one address should look into multi-car discounts as part of bundling.

Some insurance companies specialize in a particular type of insurance, such as personal property or health. Others offer a wide range of insurance products that can include just about any insurance product you are looking for, from home insurance to life insurance. Health insurance providers frequently offer health, dental and vision insurance bundles.

How to Get the Right Deal on Bundled Insurance

Looking for the right home and auto insurance bundles that 2021 has to offer doesn’t need to be a chore. Your first step is to speak with an insurance agent, who will have great advice on right insurance for your situation. After all, they are the experts and can advise you on how to get the most out of your insurance.

Although pricing is important, do not overlook your insurance basics. When you’re getting home and auto insurance bundle quotes, make sure you include everything you need from insurance, including a deductible that you would be comfortable paying out of pocket and sufficient coverage to meet your needs.

Home and auto insurance bundle comparisons should follow, once you’ve ensured that the policy quotes you’ve gathered offer similar coverage.

Remember that the best home-auto insurance bundle is one that looks to save you money for the coverage you need. Skimping on coverage or selecting too high a deductible just to try and save money on your premium might seem like a way to save money, but it could be costly if you ever need to file a claim.

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The Bottom Line

Bundling your insurance policies could save you money because it is faster and more efficient for insurance carriers, and for you. The more policies that you have under one insurance company, the more you could save. 

It is worth taking the time to see how bundling your insurance policies could reduce your premium costs. Just make sure that you are considering all aspects of the coverage that you need when you call and compare your insurance bundling quotes.


*Savings, if any, vary based on consumer’s profile and other factors. Contact your insurance agent for more information. Restrictions apply. 

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