Best Home & Auto 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
Nationwide  $1,074 $875 19% Varies $1,949
State Farm  $1,276 $789 24% Up to 17% on car insurance Up to 35% on homeowners $2,065
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 $2,676
USAA**  $1,286 $1,509 7% Up to 10% on homeowners 3-5% on car  $2,795

*Advertised on insurance company ’ s web site 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 insurance company, bundling your home and car indemnity 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 localization, driving history, dwelling construction, and more .

other Companies That Let You Bundle

While the companies in our table above stood out for their bundling discounts arsenic well as their coverage options, fiscal strength ratings, handiness, and customer servicing, most indemnity providers that sell both home and car coverage will offer a pack dismiss on one or both policies. You might besides 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 cable car indemnity 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 slippery details. As you consider whether bundling is right for you, be argus-eyed 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 smell 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 family and car policies might not be a well choice 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 car insurance are the lapp as when you ’ ra looking for a unmarried policy : read reviews, shop round, 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 policy at the same prison term, which can make it tougher to juggle all the data .

One of the most crucial things to remember when you ’ re thinking about bundling your policies is not to let your indemnity elapse. The consequences of policy lapses range from inconvenient to severe. For car insurance, a relapse can make it harder to find new coverage and could result in higher premiums, accident liabilities, or fines. If your home plate insurance lapses, your mortgage lender might apply its own policy ( with higher premiums and less coverage than you might like ) . thus have sure your new policies start on the same sidereal day, or even the day before, you cancel the erstwhile ones .

If you ’ ra selling your home, your mortgage lender will require you to have coverage until you no longer own the property. That ’ s not the close go steady, 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 newfangled home. You can cancel your car policy at any time, typically without fees, but check your policy disclosures to confirm. You probably won ’ thymine be thus lucky with your home policy policy, which may hit you with early cancellation penalties. Again, check your policy ’ randomness fine print before you make any decisions. It may be best to sign up for a dwelling and car indemnity bundle just before your home indemnity is set to expire .

methodology

The Balance strives to give consumers unbiased, comprehensive examination reviews of homeowners and car indemnity providers. To ensure that our content helps you make the proper insurance decision for your needs, we review each insurance supplier ’ south coverage options, discounts, customer service and satisfaction, and fiscal constancy .

In addition, we look at the monetary value of a basic home and car policy in a residential neighborhood in Illinois, a submit whose modal insurance premiums are airless to the national average. We request home and car quotes for the be 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 besides include a number of other variables when asked, such as a 10-year-old roof ascent. All of these factors were chosen to represent a consumer with an average home and vehicle. Your position may be quite different, but our quotation mark is not meant to cover every kind of situation, but preferably give a sample of what premiums could be .

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