Personal Finance Expert
Tyron Jones is a finance expert who has operated within the auto insurance business for more than 10 years. He has written many other finance related articles for a number of prominent publications.
Everyone loves saving money on their insurance. Thankfully, modern insurance products offer a number of great savings and discounts that you can take use to your advantage. Insurance companies offer discounts when you do something that is a win for them as well. When you get anti-theft protection on your car there’s a lower chance it will get stolen. That means you get a lower rate. The same thing goes for an alarm system in your house.
One of the best ways to save money on your home and auto insurance is to bundle them together. This article will give you all the information you need to understand what it means to bundle home and auto insurance. We’ll also give you some companies that offer bundles and go over the pros and cons of bundling. Finally, we’ll sum up all this information and help you decide if bundling is the best option to save you money on home and auto insurance.
What Does It Mean to Bundle Home and Auto Insurance?
It’s actually pretty simple to understand what it means to bundle home and auto insurance. Bundling insurance happens when you get insurance for more than one thing from the same company. For example, when you get your home and auto insurance from the same company that’s called a bundle.
Insurance companies generally like to do bundles because it creates a win-win situation for everyone involved. You get to lower your bill and they get to add to their profit without adding too much more risk. That’s why most insurance companies will cut you a deal on your home and auto insurance when you bundle them with one company.
Companies with Home and Auto Bundles
|Company||Discount From Bundling||Things That Can Be Bundled With Auto Insurance||Bundle Rating|
|Nationwide||Save an average of $700 per year||Home, Renters, Condo, Life||5/5|
|Travelers||As much as….|
10% off auto with home
15% off home with auto
5% off auto with renters
|Home, Renters, Condo||4.5/5|
|American Family||Up to 29% off Auto|
Up to 20% off home
|Home, Renters, Condo, Life, Umbrella||5/5|
|State Farm||As much as 17% off Home and Auto||Home, Renters, Condo, Life||4/5|
|Geico||Individualized Quotes||Home, Renters||4.5/5|
|Progressive||Up to 5% off Auto|
At least 10% off Home
|Home, Renders, Condo||5/5|
|Allstate||As much as….|
10% off auto
25% off home
|Home, Renters, Condo, Life||4/5|
|USAA||As much as ….|
10% off home and auto
Insurance Bundling Pros and Cons
There are several pros and cons to bundling your insurance. We’ll cover each of them in detail in this section. That way you can use all of the information to make an informed decision about what the best option is for your insurance. As a result, you can be sure that you’re getting the best deal!
Insurance Bundling Pros
There are quite a few pros to bundling. The biggest ones include:
- Save between 5% and 30% on your home and auto insurance
- Make tracking and paying your bills a simpler process
- Increases company incentive to keep you after a claim or accident
Bundling Helps you Save on Insurance Costs
One of the biggest benefits of bundling home and auto insurance is that you can save up to 30% off your costs. Keep in mind that your actual savings will depend on several factors, like your insurance company’s policies, your driving record, facts about your home, and so on. Also, it’s important to keep in mind that 30% is on the high end of the discounts you can expect. Most insurance companies will offer you savings in the 10% to 20% range. That’s still a substantial discount, but it might not be what you’re expecting.
It’s also important to realize that you can bundle other insurance products besides just home and auto. Almost every major car insurance company also offers renters and condo insurance. You can even combine things like life insurance, RV insurance, boat insurance, and more. Related article: New Boat Financing
However, every company doesn’t let you bundle every product, so you’ll need to ask around to see what your options are. The good news is that insurance companies are actually pretty flexible with their pricing. That means you can probably use the fact that you have multiple policies with a company to negotiate a discount, even if your company doesn’t advertise or offer specific bundles.
Simplifying Bills Can Be a Boon
Paying bills is a chore, and no one likes making a chore harder than it has to be. Keeping all of your insurance products with the same company means you’ve only got one bill to pay and one due date to worry about. That makes it easier to pay your bills. It also makes it easier to do things like calculate your monthly budget. This ease and simplicity is one of the main reasons that people start looking for bundling discounts.
Keep Your Insurance After a Claim
One thing that lots of people worry about is their insurance company dropping them mid-policy if they file a large claim or have an accident. This isn’t an idle concern – insurance companies can drop you if you make too many large claims or if they find out you weren’t entirely honest on your insurance application.
However, the more business you do with an insurance company, the more they stand to lose by dropping you. You can use this situation to your advantage. Bundling makes it harder for a company to justify the decision to drop you because they’ll be losing multiple policies that are producing a profit for the company. Most companies recognize that’s just bad business.
Insurance Bundling Cons
There are a few cons to bundling as well. The major drawbacks for bundling are:
- May spend more than you would with two insurers
- Coverage options vary by provider
- Insurance companies can hike up rates after first term
Spend More than You Have To
While you can get steep discounts from bundling, that doesn’t necessarily mean you’re getting the lowest possible price overall. If a company has a great deal on auto insurance but doesn’t offer home insurance, then they can specialize their services to lower costs. As a result, the cost that you get from going with two companies might be overall lower than the cost you get from bundling.
Sometimes people don’t really mind paying a bit more for a bundle. That’s because it takes a decent bit of legwork to figure out all of the possible insurance arrangements you can create. Comparing different policies from different companies for individual insurance products, and then comparing those results to possible bundles means a lot of time getting quotes from insurance companies and a lot of time investigating different insurance company’s offerings. As a result, there are people who will pay a bit more than they absolutely have to just to save time on researching insurance.
Coverage Can Be Spotty
Another thing to keep in mind with a bundle is that a company may not have the best coverage for one or both of the products you’re bundling. Moreover, some companies limit which types of policies you can bundle. That means you might wind up in a situation where you need to buy a third insurance policy, like an umbrella policy, to make sure you’re fully covered from all possible events.
If you don’t bundle, then you can choose the insurance that offers the exact level of protection you need. As a result, you save money on things like umbrella insurance. You also get to rest easy knowing that if anything happens your insurance is rock solid and has your back.
The same situation applies to people that are trying to bundle insurance other than just home and auto, like renters who want to bundle their home and rental insurance. These people might find that the rental insurance their car insurance company offers doesn’t cover certain things they need. One common example is renter’s insurance not covering large dogs. As a result, you could find yourself liable for incidents involving your dog because your bundled insurance doesn’t cover that particular situation. This shows why it’s always important to carefully evaluate not only the cost but also the coverage of any insurance policy you sign up for.
Complacency Leads to Rate Hikes
The final downside of bundling we’ll discuss has to do with what your insurance company does after your initial agreement. Most insurance agreements don’t lock in a specific rate. Instead, they set a rate for a specific term, usually 6 months to a year, and after that term they re-evaluate your rates.
This can result in a situation where your rates go up every year. Many people with a bundle assume they’re getting the best deal, so they don’t check their new rates against other insurance companies. Another problem is that sometimes people simply don’t feel like shopping for insurance. This leads to complacency. As a result, your insurance company can gradually increase your rates to the point where you’re not really getting a discount anymore. Such a situation can undo all of the benefits of a bundle and result in you paying a lot more than you need to for insurance.
Ways to Bundle if You Don’t Own a Home
Just because you don’t own a home doesn’t mean you can’t get in on bundling for discounts. In addition to bundling home and auto, you can also bundle auto and rents, auto and condo, or auto and life. You can also get a benefit from bundling multiple vehicles in the same policy. This can produce a multi-vehicle discount.
In addition to bundling multiple cars, most insurance companies will also offer a discount for bundling other vehicles. That means you can get a break on your insurance if you get your auto insurance and boat insurance from the same place. The same situation applies to people that get auto and RV insurance from the same company.
Each vehicle you add usually lowers the overall cost of each vehicle you’re insuring. As a result, it’s a good bet to put all of your vehicles under one insurance company unless your research finds a significantly lower rate on one vehicle with another company. This is possible. It’s also more likely with specialized vehicles like boats and RVs, as there are companies that specialize in insuring these types of vehicles and thus can offer you a better rate.
Is Bundling Home and Auto Right for You?
Now that you understand what home and auto bundling is and how it works, you need to decide if bundling your insurance is the best option for you. You should carefully consider the pros and cons discussed above.
One of the best ways to determine if bundling is right for you is to sort out what your priorities are. If you’re looking to save the most money, then you’ll need to compare different bundle options to the cost of having your insurance with different companies. This will ensure you get the best deal, but it does mean a lot of research and a good bit of math. If that doesn’t sound like something you’re interested in, then you’ll need to make a decision on bundling.
Another thing to think about is how much time you’re willing to put into determining the best insurance option for your needs. Bundles are a great way to do a bit of research without going all out on a deep dive into the insurance options in your area. You can compare different bundle options pretty quickly and figure out who has the best price on bundling. This simplifies your search for many different insurance products and means you’ll at least get some kind of deal, even if it’s not the absolute best option.
Bundling is also a good option for people looking to simplify their budget or their bill payments. That’s because bundling puts all of your insurance products in one easy-to-understand bill that comes the same time every month. As a result, you don’t need to track multiple due dates or remember which insurance costs what when you’re setting up your budget.
As you can see, there are some good reasons to bundle and some good reasons not too. Use the information in this article to decide which option is best for you and make sure you’ve got the coverage you need at a price you can afford.
General Bundling Home and Auto Questions
This section answers general questions about bundling.
How do you get the auto and renters insurance bundle quotes?
You can get bundle quotes by going through internet quote comparison tools or by going to individual companies and seeing what the quote to bundle would be.
When you bundle your insurance, do they both come out of your mortgage?
No, bundling insurance doesn’t affect your mortgage in any way.
When you bundle your homeowners and auto insurance, is the discount applied to auto or homeowners?
Any discount can be applied to home, auto, or both when you bundle your home and auto insurance.
How do you find the best bundle insurance company?
The best way to find the best bundle insurance company is by using online reviews and search comparison tools to find the option that works for you. There are plenty of car insurance providers that do bundling.
How can I lower my home and car insurance?
Bundling is one option to lower your home and car insurance. Companies will give you a better rate on each if you have both policies with them. Related: Why did my car insurance go up?
Is bundling insurance a good idea?
In many cases yes. However, there are times when you could get a better deal with two different companies. For example some companies may specialize in having the best car insurance for bad driving record.
Bundling Insurance and Price
We’ll cover different questions about bundling insurance and costs in this section.
How much does insurance go up when you no longer bundle?
It depends on lots of factors. You’ll need to talk to your agent to find out how the price of your insurance will be affected.
How to bargain for better insurance quote bundling?
You can use past continuous coverage and the fact that you’re bundling as reasons the insurance company should give you a better quote.
How much discount on car insurance in a bundle?
The discount on car insurance in a bundle changes from person to person depending on other factors. You’ll need to talk to an agent before you get car insurance to see what the discount would be in your case.
How much do you typically save when bundle insurance?
On average consumers save between 5% and 30% when they bundle. Your results may vary depending on the circumstances.
Who gives the best discounts for drivers with full coverage bundling, insurance?
What is the least expensive car, home insurance bundle?
The least expensive car and home insurance bundle depends on several variables. You should shop around for individualized quotes to make sure you’re getting the best deal. Also if you're leasing your vehicle the financing company may have different lease car insurance requirements.
Is it cheaper to bundle car and home insurance?
In many cases yes, it is cheaper to bundle home and car insurance. However, there are times where you could save more using two different companies.
Can an insurance bundle ever be more expensive?
Each individual product won’t be more expensive in a bundle, but you could get a lower overall cost using two companies in some instances. Check out the least expensive car insurance options we found.
Bundling Auto Insurance
This section answers the most common questions people have about bundling auto insurance.
How to do a bundle insurance with car and motorcycle?
You’ll need to talk to your insurance agent to see how you can add a vehicle to your current policy. You can sometimes bundle dental, health, and vision coverage too.
How to bundle new auto with existing renters insurance?
Your insurance agent will be able to help you adapt your policy to bundle your new car. You should contact them.
Who can bundle multiple drivers their car insurance?
Anyone can add drivers to their car insurance, which is a good idea if someone is using your car a lot. Keep driving records in mind otherwise you'll need some high risk insurance quotes to keep rates as low as possible.
How much will it be to bundle me my spouses auto insurance policies?
The cost to bundle your spouse’s auto insurance plans depends on lots of different factors. You’ll need to contact an agent for more help. You can also see if there are buy car insurance pay later options to save in the short term.
What insurance company bundle mobile home and car?
Most insurance companies that offer mobile home insurance will also bundle it with car insurance. Use mobile home insurance as your starting point for your search.
Can you bundle car insurance with someone who doesn’t live with you?
It’s possible but unlikely. It depends on individual company policies and the insurance laws in your state.
Can you bundle renters and auto insurance?
In most cases, yes. Any company that offers renters and auto insurance will usually create a bundle for you.
Can I bundle multiple cars for insurance?
You sure can. In fact, insurance companies almost always have a multi-car discount for insurance. Related: Where can I find the cheapest liability auto insurance?
Bundling Insurance and Specific Companies
We’ll answer questions about bundling and specific questions in this section.
What insurance companies bundle home, auto, and motorcycle insurance?
Geico, Progressive, State Farm, and Liberty Mutual are your best options for bundling home, auto, and motorcycle insurance.
What are the best insurance companies to bundle home and auto?
There’s no single best company. Your rates are individualized with each company, so you should shop around to find the best rate. For example because of your age AARP may be your best option.
What is the best insurance company to bundle with?
It depends on several factors. Shopping around and using a car insurance comparison tool is the only way to find the best rate for you personally.
How much do you get off of auto insurance when you bundle with Geico?
The discount you get depends on lots of other things. You’ll need to talk to a Geico agent to see what your price will be.
Why can't I bundle my auto insurance with my homeowners insurance at Geico?
There are lots of reasons you might not be able to bundle your home and auto insurance. You’ll need to talk to Geico to find out the exact reason why you’re not able to do so. Related: Do I need insurance to buy a used car?
How to bundle home and auto insurance with Geico?
You can bundle your home and auto with Geico by contacting your Geico agent and telling them you’d like to bundle.
Can I bundle insurance at Geico when setting up coverages at different times?
It’s possible, but it depends on state laws where you live and Geico’s policies. You’ll need to talk to a representative to get the answer to your question.
Does Geico bundle home and auto?
Yes, Geico offers bundles for home and auto insurance with discounts for both.
How much discount to bundle rental insurance at Progressive?
Progressives discounts average around 5% for bundling, but you might get different results.
Does Progressive bundle home and renters insurance?
Yes, you can bundle home and renters insurance with Progressive.
Progressive how much to bundle renters and car insurance?
You’ll need to talk to a Progressive agent to get a quote on your particular bundle for home and auto insurance.
How to bundle home insurance with my car insurance with Nationwide?
You can call your insurance agent from your insurance card. They’ll help you set up your bundle.
Why is Allstate home and auto bundle insurance so expensive?
There are lots of reasons the bundle you’re looking at could be expensive. You’ll need to talk to an agent about your specific case.
How much is the Allstate bundling renters car insurance?
Allstate gives quotes on a case by case basis, so there’s no set answer to this question. You’ll need to talk to Allstate to get your answer.
How to bundle auto insurance to my existing renters insurance Liberty Mutual?
Contact your insurance agent at Liberty Mutual and tell them you’d like to bundle a new auto policy with your renter’s insurance.
How much does bundling insurance on Nationwide save?
Nationwide doesn’t have public information on their bundling discount. You’ll need to contact them directly for a quote.
How much do you save with Esurance bundle insurance?
Esurance doesn’t have public information available for bundle pricing. You need to get a quote from them directly.
Does State Farm bundle home and auto?
Yes, you can do a bundle of home and auto insurance at State Farm.
Bundling Insurance in Specific States
This section covers the most common questions about bundling insurance in different states.
Who has the cheapest insurance for bundling in Tennessee?
No one company offers the cheapest bundle. You’ll need to shop around or use a quote comparison tool to get the best price on insurance. Sometimes you don't need to necessarily bundle to get lower car insurance though. Comparing quotes regularly can accomplish this.
Which insurance company offers best bundle rates in Ohio?
Different companies offer different rates to different people. Your best bet is to get individualized quotes from insurance agents to find the best rate.
What states do not allow insurance bundling?
There’s no list of states that do not allow insurance bundling publicly available.
How do I buy an insurance bundle for car hire in California?
You need to contact your car insurance company to see if it’s possible to bundle your insurance in California. Related: Is there a grace period for car insurance when buying a new car?
Other Insurance Bundle Questions
We’ll answer popular questions that don’t fit into out other categories in this section. Check here if you can’t find your question elsewhere.
Why should you not bundle auto and home insurance?
You shouldn’t bundle home and auto when you can save more by using two different companies.
What does bundling mean when in reference of insurance claims?
Bundling means the grouping of things together, like items covered by different policies.
When I have my car and home bundle can I just pay off my home insurance for a full year?
It depends on your state laws and the policies of your insurance company. You’ll need to talk to an agent for more information.
How do I get two bills with my insurance is bundle?
You need to contact your insurance company with any questions about billing.
How can you bundle homeowner's insurance if it's paid through escrow?
Your insurance company is the place to ask questions about how different payment methods work for your particular insurance situation.