Combining home and auto insurance is a simple way to reduce insurance rates on both coverages. If you get home and car insurance from the same company, you may be eligible for a discount on both policies, which lessens both your home and auto insurance premiums.
When bundling, insurance carriers provide a discount to policyholders who take multiple lines of coverage with them, says Clayton Fischer, an agent with Blue Marlin Insurance in Coral Gables, Florida. For instance, he says, insurance companies may offer exclusive options like 12-month auto policies–as opposed to six-month auto policies—when bundled with homeowners insurance.
"Biggest perk of the 12-month auto policy is preventing rate increases every six months," he says. "It’s also a feature to help policyholders have a single point of contact regarding insurance coverage."
Many insurance companies in Alaska provide discounts for bundling, but the discounts and rates can vary substantially, sometimes by hundreds of dollars. So, it's essential to evaluate the overall savings and individual policy rates to find the best bundling discount for auto and home insurance in Alaska.
- Cheapest home and auto bundles in Alaska
- The companies offering the cheapest home and auto bundles in Alaska
- Biggest home and auto bundle discounts in Alaska
- How do home and auto bundles affect car insurance rates in Alaska?
- How does bundling home and car insurance work?
- The pros and cons of home and auto insurance bundles
- Should you bundle home and auto insurance in Alaska?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Alaska
The total cost of a home and auto bundle depends on the base prices for the underlying home and auto insurance coverages. The discount applied to each policy. The table below shows the average rates for home and auto insurance, as well as the total premium with and without the bundle discount.
In Alaska, the cheapest car and home bundles are offered by State Farm, followed next by USAA.
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| State Farm | $1,445 | $1,513 | $2,170 | $2,958 |
| USAA | $1,740 | $1,128 | $2,672 | $2,868 |
| Western National Mutual | $1,377 | $2,148 | $3,207 | $3,525 |
| Allstate | $1,682 | $2,817 | $3,651 | $4,499 |
The companies offering the cheapest home and auto bundles in Alaska
State Farm
Our take: State Farm topped the list of auto insurance companies in a recent ranking, with customers giving it extremely high satisfaction scores. The company is also the top pick for home insurance, with customers giving it high marks for customer satisfaction, ease of service and for its various policy offerings. State Farm is the biggest property and casualty insurance company in the nation.
USAA
Our take: If you are eligible for USAA membership, the insurer’s competitive rates are hard to beat. While only available to military members, veterans and their families, if you’re eligible USAA it’s worth considering the company for auto and home insurance. Its auto customers rate the company highly for customer satisfaction, ease of service and more. Its home insurance customers give it high scores for its digital experience and its great discounts.
Biggest home and auto bundle discounts in Alaska
At 27%, the largest discount for bundling home and auto insurance can be found at State Farm. On the other hand, of the companies evaluated, the smallest multi-policy discount belongs to USAA, at 7%.
| Company | Home and auto bundle discount |
|---|---|
| State Farm | 27% |
| Allstate | 19% |
| Western National Mutual | 9% |
| USAA | 7% |
How do home and auto bundles affect car insurance rates in Alaska?
The table below shows Alaska auto insurance rates before and after applying a bundling discount. The most affordable rate before the multi-policy discount belongs to USAA, but the greatest discount is offered by State Farm.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| USAA | $1,128 | $1,091 | $38 | 3% |
| State Farm | $1,513 | $1,221 | $291 | 19% |
| Western National Mutual | $2,148 | $1,952 | $196 | 9% |
| Allstate | $2,817 | $2,362 | $455 | 16% |
How does bundling home and car insurance work?
The concept of bundling is pretty basic. You buy more than one type of insurance from the same company and, in exchange for the increased business, the insurance company may give you a discount. And there’s an added benefit to the insurer in offering bundles: Customers who bundle are more likely to renew with their insurer.
You typically get discounts on both car insurance and home insurance when you bundle coverage. The discount isn’t the same for each coverage type. Each provider has its own discount formulas. Companies may offer a greater discount on one than the other.
The pros and cons of home and auto insurance bundles
The biggest benefit of bundling your home and car insurance is a cheaper premium.
But keep in mind that you don't always save money bundling. You could find an insurer with a low price on one of the two policies, which could result in better savings than a bundle. Here’s how that works:
- If you pay $1,000 for car insurance from one insurer currently and $1,200 for home insurance from another, that adds up to $2,200.
- Let's say, however, you decide to get your home insurance from your car insurer. The price is $1,500 for the new home insurance policy; that's $300 more than what you pay right now.
- The new overall bundle rate would see a $300 increase, totaling $2,500.
- You would need a bundling discount of $400 or so, at minimum, to decrease the total bundle rate by enough money to save when compared to the price you pay currently for the separate policies.
Remember that rates on bundles aren't always lower in absolute terms. This is the reason you should carefully compare what you pay for separate policies now to quotes on home and car insurance bundles.
Should you bundle home and auto insurance in Alaska?
Prior to signing up for an auto and home bundle, it’s important to shop around. Bundling your car and homeowners insurance has many advantages; you only have to deal with a single company and with a single bill, and you typically get a discount on both policies. However bundling isn’t always the best deal.
Some companies have cheap car insurance rates but less competitive home insurance rates, and vice versa. You might pay less overall by choosing two different companies for your insurance.
Shop around and evaluate Alaska car insurance rates on an individual basis and with a bundling discount to make sure you’re getting the best deal before you purchase.
Methodology
In the spring of 2023, Insurance.com analyzed rate and discount data from Quadrant Data Services. The rates, from 2022, are the most recent available to Insurance.com and are based on a 40-year-old male driver with a 12-mile daily commute, good credit and a clean driving history. Rates were fielded for a full-coverage policy (100/300/100 with a $500 collision and comprehensive deductible). Homeowners insurance rates are based on $300,000 in dwelling coverage with $300,000 in liability and a $1,000 deductible.
FAQs: Home and auto insurance bundling
Below are answers to common questions about bundling home and auto and other multi-policy discounts that can save you money on your insurance coverage.
How do I cancel my insurance and bundle with another company?
You should have your new policy ready to go first, as you want to avoid a lapse in coverage. Once you have the new policy start date, give your car or homeowners insurance company at least a 30-day notice of your cancellation. You can set the start date of your new policy for the day your old policy ends. By doing so, you'll ensure that your former company will stop billing you by the time your new policy is in effect. You'll also prevent any coverage gaps between the canceled policy and the new one.
Is there a limit on how many policies can be bundled?
Typically, you can purchase as many insurance policies as you want from the same company. However, that doesn’t mean you can take advantage of a bundling discount with every policy you buy. There may be a limit on the number of policies you can bundle with one company. For instance, you might only qualify for a bundling discount on the three most expensive policies. You should speak with an agent from your insurance company to learn more about the possible restrictions.
What type of insurance policies can I bundle?
Multi-policy discounts can also apply to other types of insurance policies that you buy from the same insurance company. Depending upon the insurer, you may also be able to bundle these types of insurance policies:
- Condo
- Renters
- Motorcycle
- RV
- Life
Some auto insurance companies don't write homeowners insurance, but some may align themselves with a home insurer to offer a discount. Ask your agent or customer service representative to see if you can bundle multiple insurance policies.
