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."
Many insurance companies in Mississippi provide discounts for bundling, but the discounts and rates can vary considerably, sometimes by hundreds of dollars. So, it's essential to inspect the overall savings and individual policy rates to find the best bundling discount for auto and home insurance in Mississippi.
- Cheapest home and auto bundles in Mississippi
- The companies offering the cheapest home and auto bundles in Mississippi
- Biggest home and auto bundle discounts in Mississippi
- How do home and auto bundles affect car insurance rates in Mississippi?
- 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 Mississippi?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Mississippi
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 Mississippi, the cheapest car and home bundles are offered by Allstate, followed by State Farm.
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| Allstate | $1,246 | $2,574 | $3,255 | $3,820 |
| State Farm | $3,075 | $1,653 | $3,411 | $4,728 |
| Southern Farm Bureau | $3,162 | $2,048 | $4,567 | $5,210 |
| Nationwide | $6,582 | $1,326 | $5,112 | $7,908 |
| Travelers | $8,986 | $1,602 | $9,394 | $10,588 |
The companies offering the cheapest home and auto bundles in Mississippi
Allstate
Our take: Allstate auto customers give the company high scores for ease of service and for its expansive policy offerings. Its homeowners rates are lower than most major competitors and the majority of its home insurance customers give it high marks for customer satisfaction and claims handling. Allstate is the fourth-largest property and casualty insurance company in the U.S.
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 its various policy offerings. State Farm is the biggest property and casualty insurance company in the nation.
Biggest home and auto bundle discounts in Mississippi
At 35%, the largest discount for bundling home and auto insurance can be found at Nationwide. On the other hand, of the companies evaluated, the smallest multi-policy discount belongs to Travelers, at 11%.
| Company | Home and auto bundle discount |
|---|---|
| Nationwide | 35% |
| State Farm | 28% |
| Allstate | 15% |
| Southern Farm Bureau | 12% |
| Travelers | 11% |
How do home and auto bundles affect car insurance rates in Mississippi?
The table below shows Mississippi auto insurance rates before and after applying a bundling discount. The most affordable rate before the multi-policy discount belongs to Nationwide, but the largest discount is offered by Allstate.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| Nationwide | $1,326 | $1,065 | $261 | 20% |
| State Farm | $1,653 | $1,404 | $249 | 15% |
| Travelers | $1,602 | $1,442 | $160 | 10% |
| Southern Farm Bureau | $2,048 | $1,679 | $370 | 18% |
| Allstate | $2,574 | $2,233 | $342 | 13% |
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 equal for each coverage type. Each provider has its own discount formulas. Companies may offer a bigger 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 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 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 Mississippi?
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 Mississippi 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,
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.
