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, lessening your home and auto insurance premiums.
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 Pennsylvania provide discounts for bundling, but the discounts and rates can vary substantially, sometimes by hundreds of dollars. So, evaluating the overall savings and individual policy rates is essential to finding the best bundling discount for auto and home insurance in Pennsylvania.
- Cheapest home and auto bundles in Pennsylvania
- The companies offering the cheapest home and auto bundles in Pennsylvania
- Biggest home and auto bundle discounts in Pennsylvania
- How do home and auto bundles affect car insurance rates in Pennsylvania?
- 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 Pennsylvania?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Pennsylvania
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 and the total premium with and without the bundle discount.
In Pennsylvania, the cheapest car and home bundles are offered by State Farm, followed by Nationwide.
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| State Farm | $1,532 | $1,890 | $2,589 | $3,422 |
| Nationwide | $2,188 | $2,089 | $3,525 | $4,277 |
| Erie Insurance | $2,060 | $2,177 | $3,558 | $4,237 |
| Allstate | $989 | $3,701 | $3,778 | $4,690 |
| Travelers | $5,536 | $1,573 | $6,331 | $7,109 |
The companies offering the cheapest home and auto bundles in Pennsylvania
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.
Nationwide
Our take: Nationwide auto customers give it high marks for affordable rates and claims satisfaction. Its home insurance rates aren’t the lowest, but they are still cheaper than many competitors. Nationwide, the tenth-largest property and casualty insurance company in the nation, ranked third for claims satisfaction in J.D. Power’s 2022 survey.
Biggest home and auto bundle discounts in Pennsylvania
At 24%, 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 Travelers, at 11%.
| Company | Home and auto bundle discount |
|---|---|
| State Farm | 24% |
| Allstate | 19% |
| Nationwide | 18% |
| Erie Insurance | 16% |
| Travelers | 11% |
How do home and auto bundles affect car insurance rates in Pennsylvania?
The table below displays Pennsylvania auto insurance rates both prior to and after a bundling discount is applied. The lowest price with the multi-policy discount belongs to Travelers, and State Farm and Allstate offer the most significant overall discount.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| Travelers | $1,573 | $1,417 | $156 | 10% |
| State Farm | $1,890 | $1,528 | $362 | 19% |
| Nationwide | $2,089 | $1,873 | $216 | 11% |
| Erie Insurance | $2,177 | $1,933 | $244 | 11% |
| Allstate | $3,701 | $3,012 | $690 | 19% |
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 bigger discount on one than the other.
The pros and cons of home and auto insurance bundles
The greatest benefit of bundling your home and car insurance is a reduced premium.
But keep in mind that you won't always save money by 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 currently pay $1,000 for car insurance from one insurer and $1,200 for home insurance from another, that's a total of $2,200.
- But let's say you decide to buy your home insurance from your auto insurer. The cost for the new home insurance policy is $1,500, or $300 more than your current cost.
- Your total rate under the bundle would be $2,500, a $300 increase.
- That means you'd need a bundle discount of at least $400 or so to lower the total bundle rate enough to save money compared to the price you currently pay for separate policies.
That's why you should compare home and auto insurance bundle quotes to what you're paying for separate policies. Rates on bundles aren't always lower.
Should you bundle home and auto insurance in Pennsylvania?
Before 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 Pennsylvania 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 coverage gaps between the canceled and new policies.
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.
Which insurance companies bundle home and auto insurance?
Almost every insurance company offers a bundling discount, often called a multi-policy discount. Multi-policy discounts aren't just for auto and home. They often include other home insurance policies like renters and condo, as well as motorcycle insurance and in some cases life, RV, boat, and others.
