The best home and auto insurance bundles
Fact-checked with HomeInsurance.com
When it comes to insurance, it’s highly likely that you’ll have more than one item of significant value that you’ll want to protect. Some people may think that in order to find the best rates for home and auto insurance, it’s best to pinpoint individual deals for each. However, one of the best ways to save money on your home and auto insurance needs is by finding a home and auto insurance bundle.
Many insurance carriers offer home and auto insurance bundles that offer home and car owners the same level of protection for less money. Not only is this a great way to save on costly insurance needs, but it also simplifies the claims process since you’ll only be dealing with one carrier. We’ve helped break down the best auto and home insurance bundles to take the guesswork out of your shopping experience.
What is a home and auto insurance bundle?
A home and auto insurance bundle is a way in which insurance carriers offer home and auto insurance products at a discounted rate to policyholders. This way, you still get the same level of coverage that you need without having to pay more than necessary.
In addition to savings, home and auto insurance bundles help you save time with processing claims. Rather than going to two separate entities, you only have one contact to call to submit an insurance claim.
How bundling home and auto insurance works
Bundling home and auto insurance is a fairly simple process. Essentially, you only need to find an insurance provider that offers both products under one policy. Providers like Allstate make it easy with its website — you can build your own bundle. Select a home and auto insurance bundle from the provider and within a few clicks of a button, you’ll receive a personalized quote for your premium.
Other insurance providers that offer this service include GEICO, State Farm, Farmers and Progressive, to name a few. A good strategy to find the best home and auto insurance bundle is by shopping around for the best combined rate in your specific region or state.
The best home and auto insurance bundle
Many insurance carriers offer home and auto insurance bundles; however, we’ve selected the top four based on available rates, significance of discounts and breadth of coverage. The following table outlines both the individual and combined premium for home and auto insurance for each carrier:
|Company||Auto||Average Bundle Discount|
|State Farm||$1,681||Up to 17%|
*Rates obtained from Coverage.com. Discounts vary by provider.
In addition to the companies listed in this table, you may also find competitive home and auto insurance bundles offers available from the following carriers:
- American Family
- Auto Owners
- Erie Insurance
- State Auto
- The Hartford
You can receive a personalized quote for bundled insurance rates by using the online tools available on each company’s website or by calling an agent directly.
Who needs to bundle their home and auto insurance policies?
Good candidates for bundling generally include those who own both homes and cars. However, there are many other circumstances in which it may be an especially good idea for you to seek out a home and auto insurance bundle. These include the following:
- You own a home that may be perceived as a liability to insurers
- The combined policy is cheaper than what you currently pay for separate policies
- You want to reduce the risk of being dropped by your insurance provider
In particular, insurance carriers are more likely to insure at-risk homes if the customer also has an auto policy. Even if the outcome is more expensive than what you would pay for separate policies, it may be worth it to seek out a home and auto insurance bundle to increase the likelihood that your home is covered if it is determined to be a liability.
Pros and cons of bundling home and auto insurance
While there may be numerous reasons to bundle, it’s important to consider the advantages and drawbacks:
|Can help save money compared to paying for separate premiums||May be more expensive than separate policies|
|Multiple policies through one insurer decreases likelihood of being dropped||Cancellation fees and coverage lapses can apply if leaving another provider|
|Higher customer satisfaction and loyalty||Risk of “fake bundling”|
Benefits of bundling
One of the main reasons to choose to bundle home and auto insurance is because of the opportunity for increased savings compared to paying for separate policies. You can save up to 10% or more depending on the carrier, allowing you to save potentially hundreds per year on insurance coverage.
Especially if you have a home that’s difficult to insure, having multiple policies through one provider can decrease the likelihood of being dropped by your carrier. For homeowners who have a higher-risk home, this can be a huge advantage.
Bundle home and auto insurance policies often means you will experience a higher rate of customer satisfaction. This is typically because insurance companies view multiple policies as a sign of increased loyalty and consumer trust. Plus, policy management can be simpler overall, leading to a more positive experience.
Drawbacks of bundling
Despite the fact that many home and auto insurance bundles are designed to help customers save money, every insurance company is different and offers services at different rates. Because of this, it can sometimes be more financially beneficial to keep separate policies. This largely depends on what carrier you currently use and how the bundled services are handled by your provider.
Fees & lapses
If you’re planning to switch insurance providers to take advantage of a bundled home and auto policy, you may have to pay for cancellation fees to your current carrier. Not only that, but you run the risk of a lapse in coverage (a period of time where neither your car nor your home is insured). Be sure to review the terms of cancellation and have an insurer lined up so you can avoid any lapses in coverage.
Sometimes an insurance carrier will advertise a bundled policy that is actually handled by two separate insurance companies. This makes it more difficult for customers to file a claim and eliminates the convenience of having just one carrier to call with policy-specific questions. Be sure to do your research and find out whether or not the bundle you select is a true bundle or just advertised as such.
How to get a bundled home and auto policy
Getting a bundled home and auto insurance policy is typically fairly easy. The steps below can help serve as a guide but may vary by provider and your unique situation:
- Call your carrier: Before you begin shopping around for the best home and auto insurance bundle, call your carrier to see what options may be available to you. Depending on who your provider is, you may be eligible for special discounts.
- Do your research: Take your time to review the different policies and prices available in your region. Many insurance providers offer online quote tools where you can enter in the products you’re interested in bundling along with a few personal details to receive a custom quote in minutes.
- Compare and contrast: Once you’ve received a few quotes from different providers, review the terms of each, compare and contrast. This can help you make an informed decision based on your options.
- Prep to switch: When you’ve reached your decision, be sure to call your current carrier once more to review the terms of cancellation. You’ll also want to call the provider you plan to switch to in order to establish a start date that won’t cause a lapse in coverage.
- Enjoy your bundle: After everything is in place, it’s time to sign up for your new policy and enjoy the benefits of your home and auto insurance bundle.
Alternatives to bundling home and auto insurance
If bundling home and auto insurance isn’t the solution for you, plenty of other ways to save on your insurance coverage needs are available. For example, you can always contact your car insurance provider to inquire about available discounts. Typically, carriers provide discounts for drivers that:
- Are claims-free
- Streamline payments
- Have a clean driving record
- Demonstrate safe driving habits
- Have certain safety equipment installed in their vehicles
Likewise, homeowners’ insurance providers offer discounts for homes with smart home features, security systems and energy-efficiency equipment. By taking advantage of as many available discounts as possible through your current carrier, you could end up saving more than you would if you chose to bundle your policies.
- Bundling home and auto insurance can potentially provide you with significant savings, streamlined claims filing and increased customer satisfaction.
- Auto and home insurance bundles can also help homeowners insure at-risk properties and decrease the likelihood of getting dropped by their carrier.
- Home and auto insurance bundles do come with some potential downsides, so be sure to shop around and ask your carrier about cancellation fees and coverage lapses.
- If home and auto insurance bundling isn’t a good option for you, you can always take advantage of available discounts through your current provider.
Home and auto insurance bundles can provide a cost-effective solution for meeting all your coverage needs. In addition to annual savings, bundling home and auto insurance can be a solution to higher-risk homeowners to gain coverage.
However, home and auto insurance bundles aren’t always the least expensive option, so it’s best to shop around to ensure you’re getting the best price for the coverage you need. If you can’t find a combined policy that works for you, other savings opportunities are still available through your current providers.