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

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."

Most insurance companies in Michigan offer bundling discounts, but the discounts and overall prices vary, sometimes by hundreds of dollars. So, it’s essential to analyze the overall savings and the rate for each policy to find the best car and home bundling discount in Michigan.

Cheapest home and auto bundles in Michigan

The total cost of a home and auto bundle depends on the base prices for the underlying home and auto insurance coverages. The discount is 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 Michigan, the cheapest car and home bundles are offered by Auto-Owners, followed next by Automobile Club MI (AAA).

CompanyHome premiumAuto premiumBundle premiumWithout bundle premium
Auto-Owners$541$3,533$3,651$4,074
Automobile Club MI (AAA)$1,356$3,611$4,184$4,967
Frankenmuth Insurance$2,197$3,798$5,213$5,995
State Farm$2,138$4,637$5,323$6,775
Michigan Farm Bureau$9,932$4,100$12,021$14,032
The Hanover$4,188$12,400$13,531$16,588

The company offering the cheapest home and auto bundle in Michigan

Auto-Owners

Our take: Auto-Owners car insurance customers rank the company well for high renewal rates and affordable monthly premiums. Its home insurance customers generally score the company well for customer service and discounts. Auto-Owners works solely through agents and doesn’t offer online quoting but offers many other online services.

Biggest home and auto bundle discounts in Michigan

With an average of 21%, the largest discount for bundling home and auto insurance can be found at State Farm. In contrast, at only 10%, the smallest multi-policy discount of the companies reviewed belongs to Auto-Owners.

CompanyHome and auto bundle discount
State Farm21%
The Hanover18%
Automobile Club MI (AAA)16%
Michigan Farm Bureau14%
Frankenmuth Insurance13%
Auto-Owners10%

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

The table below shows Michigan auto insurance rates before and after applying a bundling discount. The most affordable rate after the multi-policy discount belongs to Auto-Owners, but Automobile Club MI offers the greatest discount.

CompanyAuto premium before bundlingAuto premium after bundling$ difference after bundling% difference after bundling
Automobile Club MI (AAA)$3,611$3,002$60817%
Auto-Owners$3,533$3,179$35310%
Frankenmuth Insurance$3,798$3,346$45212%
Michigan Farm Bureau$4,100$3,567$53313%
State Farm$4,637$3,877$76116%
The Hanover$12,400$10,464$1,93616%

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 additional 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 more substantial 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 currently pay 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 Michigan?

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 Michigan car insurance rates individually and with a bundling discount to ensure 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.

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