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Should you bundle home and auto insurance?

Some things in life are too important not to insure; car insurance and home insurance are two perfect examples. Both vehicles and homes are staples of modern life that require an insurance policy to protect them. However, that protection doesn’t always come cheap.

When trying to save money on home and auto insurance, one of the best methods is to bundle your car and home insurance policies together. What is bundling? It’s as simple as taking multiple insurance policies out from one company and asking to combine them together. 

This is a useful way to save money while streamlining your premiums. There are times when bundling isn’t always a good fit. Below, we’ll discuss when it is and isn’t beneficial to bundle these insurance types, and how to go about doing so. If you are currently renting, then consider our guide on bundling rental and auto insurance.

Why you should bundle your home and car insurance policies

Bundling your car and home insurance policies can save you money on your monthly premiums. Not only that, but it will simplify your billing and payment process by effectively turning two separate policies into one. Bundling these policies can also make you a more valuable customer to your insurance company, making it more possible to negotiate in the event of a claim.

Saves money on premiums

When it comes to the necessary cost of car and home insurance, finding savings can be a huge help. Discounts, driving record, and credit rating all mitigate the cost of insurance, and bundling policies is no exception.

When you bundle your home and car insurance policy with the same insurer, you typically see a reduction on your premium. It’s a way of passing some of the profit and savings back to you in return for trusting your provider with both home and auto needs.

The discount also works as an incentive to attract policyholders to consolidate insurance needs to one provider.

Simplifies payment process

In general, the fewer separate bills you must pay a month, the easier it is to keep track of and manage payments. With something as important as the insurance for your home and vehicle, it makes sense to keep the financial side organized. Bundling home and auto insurance policies allows you to convert two monthly costs into one.

Gives you greater leverage

The more assets you have protected by one insurance provider, typically the more value you have as a customer. Being a valuable customer can lead to greater incentive for the provider to offer discounts to maintain your loyalty. This can lead to lower rates, but it can also help your chances with customer service if you have a late payment or claims you need handled quickly.

When shouldn’t you bundle your policies

While there are numerous advantages to bundling, there are times when it isn’t always the best idea. While it may save you money in many situations, there are exceptions. Specifically, it can be a bad idea to bundle your policies if you want a high degree of customization between your plans or if you can get an exceptional rate on just one of your policies from another insurer. Both situations make bundling your insurance policies a less appealing strategy. It helps to first answer the question, how much home insurance do I need?

Less customization

Homes and cars are different, and it may be that Geico offers the car insurance options you want while Allstate provides the home insurance options you want. In this case, it may be better for you to take the respective policies out from each of them than to bundle both plans from one of them. You won’t get the bundling discount on your premiums, but you’ll retain the coverage features that you want.

Less competitive

When you shop around for policies, you can compare to find the best deals. When you bundle your policies with one company for convenience, you may be limited compared to what is offered by competitors. If you are interested in consistently getting the best deal possible, it may be best to purchase car and home policies from different companies. While this will remove the chance of a bundling discount, you could end up with a cheaper deal anyway.

Fake bundling

It can happen that when an insurance company offers you a bundled deal on auto and home insurance, one of these policies will be issued by an affiliate company. In this situation, you’ll still get your bundling discount. However, the billing and payment process may not be as streamlined as it would be if both policies were under one company.

Bad fit for high end cars

According to MotorTrend, sports cars and luxury vehicles are more expensive to insure. The best and most affordable policies for cars like these often come from companies that specialize in high-end auto insurance. The same companies are not likely to be at the top end of home insurers. 

As a result, bundling your auto and home insurance when you have a high-end car can end up with a discrepancy between your policies. One policy may be excellent, either for the home or the car, but the other won’t compare.

How to bundle your home and auto insurance policies

If you do choose to bundle policies, The first step is to compare quotes from multiple insurance companies to see what the savings would be for a bundled home and auto insurance policy. 

Next, compare the coverage features and details of the policies between these companies. After that, choose the company that offers the features you want for a price you can accept, then speak to an agent to facilitate the purchase.

You can do this in-person (depending on the company and location), over the phone or online in most cases. Most insurance companies have online web portals that will allow you to apply for their products digitally. 

Whichever way you contact them, you can elect to purchase two policies and to have them bundled. Online, this will be accomplished via digital forms. If done in-person or over the phone, simply request both policies and state that you want them bundled.

Who has the best home and auto bundle?

While bundling home and auto isn’t always cheaper than buying your policies individually, it often is. Most insurance companies offer some form of policy bundling. Below is our list of the top insurance companies for auto and home insurance bundling discounts based on indicated savings. To find out who has the best home and auto insurance bundle for you, ask each for home and auto insurance bundle quotes specific to your situation. Additionally, these providers offer bundling options that go beyond just your car and home.

Allstate: Save up to 25% off with bundling

  • Home or renters and auto insurance discount
  • Home and auto and life insurance discount
  • Renter and motorcycle insurance discount

Progressive: Save up to 20% or more on average when bundling

  • Home or renters and auto insurance discount
  • Multi-policy discount for bundling any two insurance policies

State Farm: Save $1,127 on average when you bundle

  • Home or renters or condo and auto insurance discount

Liberty Mutual: Save up to $947 when bundling.

  • Home or renter or condo and auto insurance discount

Nationwide: Save up to 20% on average when bundled

  • Home or renters and auto insurance discount
  • Home and auto and life insurance discount
  • Boat and auto insurance discount
  • Renters and motorcycle insurance discount
  • Multi-car auto insurance discount for two or more cars

The takeaway

Bundling home and auto insurance can lower your premiums.

  • Many insurance companies provide benefits when you purchase and combine multiple policies from them.
  • Depending on the company, bundling home and auto insurance policies may save you up to 25% or more.
  • Bundling insurance policies streamlines the billing process and converts multiple bills into one, making your premiums easier to keep track of.
  • Despite its benefits, bundling home and auto insurance is not always the cheapest option.

If you are looking to save money on your insurance premiums, bundling discounts is the most-recommended option. Doing so might not only provide savings on your premium, but it also streamlines your payment process.

However, when you bundle your insurance policies, you lose some ability to shop around for more competitive rates, and the ability to customize your plans. The best way to determine whether bundling is truly going to offer you savings is by comparing policies from multiple providers.

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