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Bundling home and car insurance is an easy way to get lower premiums on both policies. You may qualify for a multi-policy discount when you purchase home and auto insurance from the same company. It decreases both your home and auto insurance rates.

There are other advantages, says Rick Krapes, a Country Financial insurance agent. "If you have both home and auto insurance with Country, and both your home and car are damaged in the same occurrence … you will only have to pay one deductible for your insurance," he says.

Many insurance companies in California provide discounts for bundling, but the discounts and rates can vary considerably, sometimes by hundreds of dollars. So, evaluating the overall savings and individual policy rates is critical to find the best bundling discount for auto and home insurance in California.

Cheapest home and auto bundles in California

The total cost of a home and auto bundle depends on the base prices for the underlying home and auto insurance coverages. A discount is applied to each policy. The table below shows the average rates for home and auto insurance and the total premium with and without the bundle discount.

In California, Travelers offers the cheapest car and home bundles, followed by Mercury Insurance.

CompanyHome premiumAuto premiumBundle premiumWithout bundle premium
Mercury Insurance$1,225$2,084$2,933$3,309
State Farm$1,213$2,602$3,008$3,815
Auto Club Enterprises (AAA)$1,232$2,628$3,164$3,860
CSAA Insurance (AAA)$1,039$2,997$3,660$4,036

The company with the cheapest home and auto bundle in California


Our take: Travelers car insurance customers give it high marks for home and auto bundling. They also rank the company well for overall satisfaction. Its home insurance customers give it high scores for its ease of service and policy offerings and most said they’d recommend the company to others.

Biggest home and auto bundle discounts in California

With an average of 23%, the largest discount for bundling home and auto insurance can be found at Nationwide. On the other hand, at only 4%, the smallest multi-policy discount of the companies reviewed belongs to Allstate.

CompanyHome and auto bundle discount
State Farm21%
Auto Club Enterprises (AAA)18%
Mercury Insurance11%
CSAA Insurance (AAA)9%

How do home and auto bundles affect car insurance rates in California?

The table below displays California auto insurance rates both before and after a bundling discount is applied. The cheapest price with the multi-policy discount belongs to Mercury Insurance, and Travelers offers the most significant overall discount.

CompanyAuto premium before bundlingAuto premium after bundling$ difference after bundling% difference after bundling
Mercury Insurance$2,084$1,790$29514%
State Farm$2,602$2,056$54621%
Auto Club Enterprises (AAA)$2,628$2,200$42816%
CSAA Insurance (AAA)$2,997$2,750$2478%

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 gives you a discount. And there’s an additional benefit to the insurer in offering bundles: Customers who bundle are more likely to renew with their insurer.

You typically get discounts on car 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 by bundling. You could find a provider 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 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 currently pay for the separate policies.

Remember that rates on bundles aren't always lower in absolute terms. This is why 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 California?

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. Yet 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 California car insurance rates individually and with a bundling discount to ensure you’re getting the best deal before you purchase.


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.

What information do you need to bundle your policies?

To bundle your policies, you will need all the details for the cars and the home you want to insure. That includes VINs, driver information and details about the home. Your current home and auto policies will list this information for easy reference.

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 insurance policies 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 if you can bundle multiple insurance policies.

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