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.
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 Rhode Island offer bundling discounts, but the discounts and overall premiums 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 Rhode Island.
- Cheapest home and auto bundles in Rhode Island
- The companies offering the cheapest home and auto bundles in Rhode Island
- Biggest home and auto bundle discounts in Rhode Island
- How do home and auto bundles affect car insurance rates in Rhode Island?
- 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 Rhode Island?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Rhode Island
The price you pay with a home and auto bundle depends on the base prices for the home and auto coverages, as well as the amount discounted on each policy. The table below shows the average rates for home insurance and auto insurance and how much the total premium comes to with and without the bundling discount.
The cheapest car and home bundles in Rhode Island are from State Farm, followed by Nationwide.
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| State Farm | $931 | $1,315 | $1,739 | $2,246 |
| Nationwide | $1,978 | $2,101 | $3,476 | $4,079 |
| Allstate | $1,527 | $3,549 | $3,960 | $5,076 |
| Amica Mutual | $2,268 | $3,059 | $4,445 | $5,327 |
The companies offering the cheapest home and auto bundles in Rhode Island
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 Rhode Island
At 23%, 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 Nationwide, at 15%.
| Company | Home and auto bundle discount |
|---|---|
| State Farm | 23% |
| Allstate | 22% |
| Amica Mutual | 17% |
| Nationwide | 15% |
How do home and auto bundles affect car insurance rates in Rhode Island?
The table below shows Rhode Island auto insurance rates before and after applying a bundling discount. The most affordable rate with the multi-policy discount belongs to State Farm, but Allstate offers the greatest discount.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| State Farm | $1,315 | $1,106 | $209 | 16% |
| Nationwide | $2,101 | $1,887 | $215 | 10% |
| Amica Mutual | $3,059 | $2,631 | $428 | 14% |
| Allstate | $3,549 | $2,933 | $616 | 17% |
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 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 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 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 Rhode Island?
Shopping around is important before signing up for an auto and home bundle. 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 Rhode Island car insurance rates individually and with a bundling discount to ensure you get the best deal before purchasing.
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.
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.
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.
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.
