Anyone who has ever shopped for an insurance policy has certainly come across the option to bundle and save. But what does it mean to do this, and can it really save you money?
In many cases, you can indeed save money by getting two or more policies from a single provider. Depending on the insurer, you might get as much as 25 percent off your home or auto insurance policy. Not only that, but it’s more convenient to have all your billing information in one place.
Of course, convenience is a great way to forget about your payments, which means you could end up paying too much. That’s why it’s important to always shop around each year.
OUR TOP PICK
Why Allstate Insurance?
- Allstate is known as the leader in the industry when it comes to automobile safety and education.
- Offers the chance to bundle auto, home, and life insurance for convenience.
- Features an online quoting system so you can tailor your packages based on needs and price.
What is Bundling?
As previously mentioned, most insurance companies offer some kind of discount for bundling. Bundling refers to getting two or more policies from the same provider. You may also see it referred to as a multi-policy discount. Regardless, you’ll find them on the declarations page for your policy.
Aside from saving money, there are several advantages to bundling your home and auto insurance:
- Only one company to deal with
- Only one online portal to pay bills or manage policies
- Easier to identify gaps in your coverage
- Adjust renewal and effective dates on both policies in one place, depending on the provider
Again, depending on the provider, there are other possible perks for bundling your auto and home insurance policies. For example, you might gain a single-loss deductible. This means only dealing with one deductible if your home and car become damaged from the same event.
Although they’re the most commonly bundled policies, home and auto insurance aren’t the only ones you can combine with a provider. Discounts vary too, with steeper discounts available for larger policies. Because your house is probably worth more than your car, you’ll likely get the biggest discount on your homeowners insurance cost.
What does that mean? If your current auto insurance policy is inexpensive but your home insurance is expensive, you’ll gain the most by bundling.
On the other hand, your auto insurance policy could be the pricier of the two if you live in certain states, have poor credit, or have been in an accident. If this is the case, you may benefit more from finding a cheaper auto insurance policy instead of bundling.
If you think bundling is the right choice for you, be sure to compare quotes across the board. You want to know how much it would cost to bundle with different companies and how much it costs to buy separately. If the separate policies is cheaper and doesn’t sacrifice important coverage, then there’s no reason to bundle.
Home- and car owners who choose to bundle are more likely to remain with that insurance provider for a long time. When renewing a policy, insurers regularly and gradually increase rates. It’s slow enough that you won’t want to change providers after a year or two, but it’s significant enough that you want to shop around every so often.
Pros of Bundling Insurance
A good bundle should save you more money than if you were to get your home and auto insurance policies separately. Cost-effectiveness is not the only benefit to combining policies, though.
You’ll save money
That said, you do stand to save quite a bit by staying with one company. The multi-policy discount could save you as much as 30 percent on your premiums. Of course, the exact amount that you will save depends on where you live. For example, drivers in Georgia saved 22 percent by bundling their policies, while 11 other states also boasted discounts over 20 percent.
Allows for strategic saving
If you’re a strategic saver, then bundling serves as a great platform. It’s not immediately obvious, but it pays off during an emergency, such as totaling your car or a tree breaking through your roof. With separate policies, you would need to pay two separate claims to two companies, even though this was one event. With a single provider and a multi-policy deductible, you could file a single claim and thus pay one deductible.
Bundling is more convenient
When you have multiple policies under a single provider, it cuts down on paperwork, on how long you’ll spend having to manage your policies, and reduces the number of passwords to juggle and keep safe. It also means you will spend less time on the phone talking to agents about trying to renew or make changes to your home or auto insurance. Plus, if the agent is familiar with more of your overall situation, it will be painless to apply discounts, add new coverage, or bring someone else on to your auto insurance policy.
Exclusive product tiers
In some cases, you’ll also gain access to more complex bundles only accessible by combining your insurance policies. For instance, you could get a single policy that covers your home, your car, a rental property, your boat, and an RV, as long as you’re with a provider that specializes in all of these. Not only does a single-policy situation cut out lots of paperwork, but there’s only one bill to pay, likely one deductible, and one place to manage your policies.
Benefits for high-risk homes
If you have more than one policy with an insurance company, they are less likely to decide they don’t want to work with you anymore. That means if you live in a home considered to be “high-risk,” meaning you’re on a fault line, in a crime-heavy area, or live near potentially extreme weather, you’ll have better success finding long-term coverage with bundling. Because you’re a loyal customer whose policies are all with this one provider, they’re not going to refuse you coverage despite the risks.
Cons to Bundling Insurance Policies
It’s impossible to deny all the benefits to bundling your home and auto insurance policies, but we would be remiss to skip over the downsides. There are just as many instances where you would not want to bundle your policies. Not only that, but staying with a single company and not shopping around can lead to tunnel vision. Tunnel vision leads to missing out on the major discounts and offers that other providers can give you for the same coverage.
Your vehicle is high-end
If you own a performance or high-end vehicle, then you’re not going to find value in a traditional policy with an auto insurance company, whether it’s bundled or not. Repairing a high-end vehicle is a high-end venture in itself, so most auto providers will charge an insane premium if they agree to cover it at all. If you’re going to pay that much on a monthly basis, you may as well seek out an insurer who specifically works with expensive cars.
You could end up with less coverage
Although you will likely save money in the short-term, it is possible that your bundled policies aren’t as good as what you could afford separately for the same cost. That means having to pay much more money down the road in the event of an incident. If you’re happy with the rates you’re paying for your current insurance policies, and if you are not worried about looking for the absolute minimum monthly cost, then don’t worry too much about bundling right now.
If you can’t compare policies
As mentioned before, tunnel vision can occur when you stick with a single carrier to bundle your home and auto insurance policies. Brand loyalty and its benefits are great, but that can cause you to be too complacent with the provider, and you won’t shop around, then you miss out on the benefits of other policies. Not only this, but you’ll start making comfortable decisions in favor of logical decisions.
Yes, You Can Save Money by Bundling
Insurance companies that bundle policies for home- and car owners typically provide discounts of 5 to 25 percent per policy. Because homeowners insurance tends to cost the most, because the value of your home tends to be the greatest of your properties, you’ll generally save the most on this policy.
Shopping around to save money isn’t difficult, because most insurance companies aren’t interested in restricting themselves to one type.
The amount you can save on your auto insurance policy varies from state to state and depending on your provider. It is usually a smaller percentage than the house insurance, but you can expect somewhere around 10 percent in many cases. If you bundle auto insurance with a renter’s policy instead of home insurance, then that discount might be as little as 5 percent.
Tips for Bundling Home and Auto Insurance
- Before committing to a policy or bundle, compare quotes from several companies with an agent or online. An independent agent can help you seek quotes from many companies at once. A company’s agent, on the other hand, will only know of discounts for his own company.
- When comparing quotes, ask if the company uses third-party insurance at any point. You’ll still save money, but then you lose the convenience factor. With a third-party company in the mix, you’re now dealing with more than one company.
- Shop around on a regular basis for both separate and bundled policies. Don’t let the tunnel vision affect your wallet.
- In addition to bundling you can qualify for other discounts such as having the best home security system which would reduce your rates by 10% or more.
Bundling insurance policies does not automatically mean you will save money or even have the same amount of coverage, so be sure to shop around and compare your policies carefully. Your home and car insurance rates will largely depend on your unique circumstances.
At the end of the day, remember to trust your instincts. Does bundling your policies seem like the right move after doing all your homework? Understand your limits, know your options, and work with your research to find the best bundle for you. You may also need to look at supplemental insurance to make sure all your bases are covered.
General Home and Auto Bundle Questions
This section will give you the basic information you need to understand about home and auto insurance.
What does it mean to bundle home and auto insurance?
Bundling home and auto insurance means that you get both policies from the same company. Many companies give discounts when you do this.
What are the best insurance companies for auto and home?
There’s no single answer to this question, as it depends on lots of factors, like where you live, your driving record, credit history, and so on. We recommend using internet search tools to see the best bundle options near you.
Is it better to bundle home and auto insurance?
For most people, yes. Bundled policies typically cost much less money. That means you can get the protection you need while saving money.
How to save on home and auto insurance?
The best way to save money on home and auto is to get a bundle deal. That means getting both policies from the same company, which will net you a nice discount. For example in our Metromile insurance review we talk about how they recently partnered with another company to offer home insurance too for this very reason.
Is switching auto and home insurance bad?
No, it’s not bad to switch home and auto insurance. There’s no reason to pay more for these products if you can get them cheaper somewhere else.
How often should you shop for home and auto insurance?
We recommend shopping for home and auto insurance about every four months. That will give you enough time to find the best deal before your current policy expires and renews.
How to switch home and auto insurance?
You can switch home and auto insurance by first finding the company you want to switch to. Most insurance companies will handle the process of canceling your previous policy.
Is it wrong to have different auto and home insurances?
It’s not wrong, but you might be paying more than you need to by having different auto and home insurances. Bundling these products with one company can save you lots of cash.
Should I bundle home and auto insurance?
It most cases, yes. Bundling home and auto insurance gives you a substantial discount on both products. In turn, this can save you lots of money every month.
How to lower home and auto insurance?
The best way to lower your home and auto insurance is to bundle the two products with one company. This will get a better price on both products. On another note we recently discussed how to use the best home refinance companies to save on your current mortgage payment. So there are multiple ways to reduce costs associated with your home.
Understanding how Insurance Bundles Work
We’ll explain some specifics about how insurance bundles work in this section.
What are the benefits of bunding home and auto insurance?
The benefits of bundling home and auto insurance are that the price is lower for each insurance policy. That means you can save lots of money at once.
Does property insurance refer to home and auto?
Not in most cases. Property insurance is usually the business version of homeowners insurance.
Are home and auto insurance policy premiums taxable?
In many cases, yes. State, local, and federal governments can tax these premiums to fund things like road construction and police services.
Are home and auto insurance premiums tax deductible?
Not in most cases. However, tax deductions can be complex, so you should talk to a qualified tax professional to get the answer in your specific case.
What happens if you cancel your home and auto insurance?
If you cancel your home and auto insurance then your home won’t be protected in case a disaster strikes and you won’t be able to legally take your car on the road until you get new car insurance.
Questions About Bundling with Specific Companies
This section answers your questions about bundling with specific insurance companies.
Does Geico bundle home and auto insurance?
Yes, Geico offers discounts on your policies when you have a homeowners and auto insurance policy with them.
Does AARP have home and auto insurance?
Yes, AARP home and auto insurance are offered through The Hartford. You can find out more information about the program on AARP’s website.
Does Amica insure home and autos in NJ?
Yes, Amica offers both home and auto insurance in the state of New Jersey.
Does Costco offer auto and home insurance?
Costco offers home and auto insurance through Ameriprise Insurance. This set up has existed for more than 20 years.
Does Farmers have auto and home insurance?
Yes, you can get both home and auto insurance from Farmers, and you can also get a discount for having both policies with the company.
Does Hagerty insurance write home and auto?
At this time Hagerty does not offer home insurance, only auto insurance. Specifically for classic and collector cars.
Does Mercury Insurance cover home and auto?
Yes, you can get both home and auto policies from Mercury while saving money by bundling the two policies.
Does MetLife cover home and auto insurance?
MetLife does offer both home and auto insurance. They also offer discounts from bundling, so they’re a good option if you’re looking to save money.
Does Pramerica do home and auto insurance?
They sure do – you can get both your home and auto insurance through Pramerica insurance.
Does Progressive manage both home and auto insurance?
Yes, Progressive Insurance will handle both your home and auto insurance if you want to get both policies from them.
How add home to auto insurance with Progressive?
The best way to add your home to your auto insurance with Progressive is to contact your agent. You can get the contact information from your insurance card.
Does Zander insurance do home and auto?
No, Zander will help you find a home insurance provider by putting you in touch with agents, but they do not provide home insurance themselves.
How good is Ameriprise auto and home insurance?
Ameriprise auto and home insurance are rated fairly well. The company has maintained a relationship with Costco for more than 20 years, which shows that people are generally happy with them.
How to add an auto policy to Travelers home insurance?
You can add an auto policy to your Travelers home insurance by contacting your insurance agent.
How to add home insurance to Geico auto online estimation?
You can add home insurance to your Geico auto online estimation by following the estimation to the end and then selection the option to add other insurance.
Is AAA auto and home insurance good?
Lots of people like AAA home and auto insurance bundles. They have a solid reputation, lots of experience in the industry, and a long track record of satisfied customers.
Is AARP car home insurance worthy?
Many people think so. AARP insurance is provided by The Hartford, one of the top rated insurance companies in the business.
Is Liberty Mutual good for auto and home insurance?
Liberty Mutual is usually a pretty good option for auto and home insurance. However, you should still shop around to see what the best option is for you.
Should I add my autos to my home insurance USAA?
In many cases, yes. Adding your autos to your USAA home insurance will let you get a better price on your insurance for both things.
Does Lemonade offer bundling for home and auto insurance?
We could not locate any information about Lemonade offering this discount as they appear to only offer renters and home insurance. In the meantime we did review them more in depth. Read more: Is Lemonade renters insurance legit?
Getting A Home and Auto Insurance Bundle
This section will cover some of the most popular questions about getting a home and auto insurance bundle.
How to shop for home and auto insurance?
The best way to shop for home and auto insurance is to use online insurance search tools. These can help you get an accurate quote estimate from lots of companies at once to make your shopping easy. This will also work for insurance for motorcycle riders.
How to find the best home and auto insurance?
You can find the best home and auto insurance by using internet insurance search sites to compare the different options and prices you’ll get from companies near you.
How to compare home and auto insurance plans?
The best way to compare home and auto insurance plans is to compare the ratio of what you’re spending for the protection you get. For example, a policy that costs $100 a month and has a $100,000 limit has the same value as one that costs $500 per month for a $500,000 limit.
Which companies provide home auto and umbrella insurance?
The most popular options for home and auto umbrella insurance are Liberty Mutual, Travelers, USAA, and Allstate.
What is a good low-priced home and auto insurance?
The price that insurance companies offer change based on lots of specific, individual factors. Your best option is to use an insurance comparison tool to see what rates you personally will be offered.
Other Questions About Bundling Home and Auto
We’ll cover home and auto insurance bundling questions that don’t fit into our other categories in this section.
Can auto insurance be escrowed if I combine with home?
That depends on your specific insurance company’s policies. You’ll need to check with them to get the answer to this question.
How long to keep auto and home insurance statements?
You should keep your home and auto insurance statements for as long as you own the particular policy.
How to cancel auto and home insurance?
You’ll need to contact your insurance company to find out how to cancel your services with them. Keep in mind that you may not be able to cancel your auto insurance until you turn in the tags for your car or get new insurance, depending on state law.
What is the best rated home and auto insurance company?
That depends on what you’re looking for. USAA is the best option for former and current members of the military.
Why is my auto listed as homeowners insurance?
Your auto insurance may be listed as homeowners insurance because you have the two policies bundled. However, you’ll need to talk to your insurance company to find out the specifics in your case.
Does owning a home affect car insurance?
Yes, owning a home tends o lower the cost of car insurance because, stattistically, home owners are less likely to be in an accident.
Can unmarried couples share home and car insurance?
Yes, there’s no restriction on marriage for sharing home and car insurance. In fact, if you live together, your auto insurance may require you to be on each other’s policies anyway.
Do I need legal protection on home and car insurance?
That depends on your particular situation. You should contact a qualified lawyer to find out what your legal protection needs are.
What are some car factors that affect home insurance premium?
Each insurance company sets their rates according to their own internal calculations, so there’s no set list of car factors that affect home insurance premiums.
What is the average home and car insurance in Illinois?
The average in Illinois for home and auto insurance is about $1,033 per year, which is well below the national average.
Why does my car and home insurance keep going up?
Your insurance rates could go up for many different reasons, including changes to credit score, claims, age of your home and/or car, and other factors. You’ll need to ask your insurance company to get specifics in your case.