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Together, home and auto insurance add up to a big expense, but you might be able to lower your overall insurance bill by buying both from the same company.

Bundling your auto and home insurance policies is an easy way to lower the cost of your insurance. Most insurance companies offer bundle discounts, which are among the biggest auto and home discounts you can find.

In this guide, we’ll highlight the best insurance companies for home and auto bundling and help you figure out how much you could save by bundling your auto insurance and home insurance with one insurance company.

KEY TAKEAWAYS
  • When you bundle home and auto insurance you can save 15% annually, on average, based on a 2022 analysis by Insurance.com.
  • Based on data collected by Insurance.com, Indiana Farm Bureau offers the highest discount (28%) for bundling an auto and home insurance policy.
  • Insurance companies offer bundling discounts if you purchase auto insurance with a condo, renters, life, motorcycle, or RV insurance policy.

Which insurance companies bundle home and auto insurance?

Almost every major insurance company offers savings for bundling multiple policies, even if it’s not specifically advertised. that can include home, auto, and motorcycle insurance, and in some cases life, RV, boat, and other policies as well. Below are some of the biggest carriers that offer a bundling discount to new and existing customers:

  • Allstate
  • American Family
  • Nationwide
  • Progressive
  • State Farm
  • Liberty Mutual
  • Farmers

Which company has the best home and auto insurance bundle?

Indiana Farm Bureau has the highest policy bundling discounts (28%), based on a 2022 Insurance.com analysis of dozens of major auto and home insurance companies offering multi-policy savings. Vermont Mutual offers the second biggest discount, with potential savings of up to 26%.

State Farm, which is the largest home and auto insurance provider in the country, also has one of the best auto and home insurance bundles, with savings of 25%.

The table below provides a home and auto insurance bundle comparison. You can see the average policy bundling discount from a variety of insurance companies and the potential total savings.

Best Auto and Home Insurance Bundle Companies
CompanyAuto RateHome RateTotal RateTotal Rate after BundleTotal $ SavingsBundle Discount %
Indiana Farm Bureau$1,735$3,099$4,834$3,497$1,33728%
Vermont Mutual$1,627$868$2,495$1,845$65026%
State Farm$1,397$2,156$3,553$2,650$90325%
Grange Mutual$2,511$2,012$4,523$3,393$1,13025%
Oklahoma Farm Bureau$2,451$3,844$6,295$4,879$1,41622%
Nationwide$1,626$2,410$4,036$3,160$87622%
Safety$1,186$1,841$3,027$2,370$65722%
The Hanover$4,114$2,847$6,961$5,483$1,47821%
Pemco Mutual$1,271$840$2,111$1,668$44321%
Tower$2,348$1,168$3,516$2,802$71420%
NYCM$2,993$1,000$3,993$3,197$79620%
CSAA$2,724$3,391$6,115$4,905$1,21020%
Farmers$2,323$3,052$5,375$4,390$98518%
Allstate$2,884$1,870$4,754$3,906$84818%
Automobile Club MI$2,704$1,677$4,381$3,602$77918%
Country$1,481$2,630$4,111$3,389$72218%
Pekin$1,065$1,987$3,052$2,516$53618%
Erie$1,388$2,014$3,402$2,810$59217%
Palisades$1,613$1,757$3,370$2,795$57517%
Iowa Farm Bureau$1,858$2,873$4,731$3,927$80417%
Alfa$2,471$4,227$6,698$5,587$1,11117%
Pennsylvania National$1,405$867$2,272$1,900$37216%
Cincinnati Financial$1,550$1,673$3,223$2,696$52716%
American Family$1,710$2,761$4,471$3,744$72716%
Kentucky Farm Bureau$2,166$4,833$6,999$5,862$1,13716%
MMG$1,039$1,657$2,696$2,267$42916%
Frankenmuth$1,746$1,429$3,175$2,672$50316%
Arbella$1,722$1,478$3,200$2,695$50516%
Shelter$2,634$3,103$5,737$4,844$89316%
Pioneer State Mutual$2,291$1,462$3,753$3,171$58216%
Amica Mutual$4,349$2,444$6,793$5,749$1,04415%
Auto Club Enterprises (AAA)$2,803$1,620$4,423$3,751$67215%
Quincy Mutual$1,517$1,298$2,815$2,391$42415%
Union Mutual Fire$1,086$998$2,084$1,771$31315%
Farmers Mutual Of Nebraska$1,351$2,672$4,023$3,424$59915%
Concord$846$928$1,774$1,510$26415%
North Star$2,224$1,851$4,075$3,511$56414%
Southern Farm Bureau$1,748$2,577$4,325$3,739$58614%
Plymouth Rock$1,292$827$2,119$1,841$27813%
Michigan Farm Bureau$2,493$1,762$4,255$3,732$52312%
Auto-Owners$1,862$2,199$4,061$3,569$49212%
Progressive$1,745$1,670$3,415$3,011$40412%
American Farmers & Ranchers$1,926$3,536$5,462$4,821$64112%
Mercury Gen$2,222$1,136$3,358$2,968$39012%
Rural Mutual$1,418$1,151$2,569$2,281$28811%
Travelers$1,589$2,671$4,260$3,804$45611%
Western National Mutual$1,795$1,495$3,290$2,953$33710%
Indiana Farmers Mutual$1,267$1,192$2,459$2,214$24510%
Westfield$1,536$1,716$3,252$2,934$31810%
Nodak Mutual$2,419$2,448$4,867$4,418$4499%
Co Operative$1,075$1,321$2,396$2,187$2099%
Tennessee Farmers$1,371$2,320$3,691$3,378$3138%
Farm Bureau$1,980$714$2,694$2,467$2278%
IMT Mutual Holding$1,740$1,546$3,286$3,016$2708%
Island$1,670$594$2,264$2,087$1778%
New Jersey Manufacturers$1,728$727$2,455$2,314$1416%
Texas Farm Bureau Mutual$1,377$2,146$3,523$3,353$1705%
AmTrust$1,649$1,506$3,155$3,007$1485%
North Carolina Farm Bureau$1,128$1,640$2,768$2,681$873%

What does it mean to bundle home and auto insurance?

Bundling home and auto insurance means that you’re purchasing both policies from the same company. Insurance providers use bundling discounts to incentivize customers to buy all of their insurance policies from the same carrier. You get all of your insurance bills in one place, and the company gets the additional business.

Does bundling insurance save money?

Yes. You can save, on average, 15%, or just over $600 annually, when you bundle home and auto insurance. That's based on a 2022 Insurance.com rate analysis of more than 50 car insurance and home insurance companies' rates for those who bundle home and auto. The amount you'll save on your home and auto insurance depends on your state, your carrier and other factors.

That said, it's not always the best deal overall. Always compare rates for home and auto purchased separately from different companies when you're shopping. Sometimes it's cheaper to buy them separately.

How does bundling home and car insurance work?

It's simple; you buy more than one type of insurance from the same company, and they give you a discount in return. Why offer a break for buying multiple policies? It’s not just that insurance companies can make a profit off two policies. Customers who bundle are also seen as more likely to renew, and it’s said that homeowners file fewer claims on their auto insurance policies.

Bundled discounts vary by company and may not be available in all states. No matter where you live, bundling your homeowners policy will get you larger savings than a condo, renters insurance or life policy.

The way your discount is applied to your insurance policy varies. You typically receive discounts on both auto insurance and home insurance when you bundle coverage. The discount isn’t the same for each coverage type. Each carrier has its own discount formulas. Companies may offer a larger discount on one than the other.

The best way to determine overall bundle savings is by taking into account the premium of both your home and auto insurance and the discounts given for each. That provides the total dollar amount you’re paying for both coverages and the total amount saved. Then, you can calculate the percentage of your overall bundling savings. In the example below, you’ll see the overall home and car insurance bundle discount is 23%.

PolicyRateDiscount $Discount %
Auto$1,500$37525%
Home$1,000$19019%
Total premium; pre-discount$2,500
Premium with discount$1,935$56523%

Is bundling home and auto insurance worth it? The benefits of bundling insurance policies

The biggest benefit of bundling your home and auto insurance is a lower premium.

However, keep in mind that you don’t always save money by bundling your home and auto insurance policies. You might find another carrier with a cheaper price on one of the two policies, which could equal greater savings than a bundling discount. Here’s an example of how this works:

  • If you currently pay $1,000 for auto insurance from one company and $1,200 for home insurance from another, that's a total of $2,200.
  • 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.

Home and auto insurance bundlingThat'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 I bundle home and auto insurance?

In many cases, bundling home and car insurance will help you save money. Bundling insurance has other benefits besides potentially offering the cheapest home and auto insurance:

  • You deal with only one insurance company.
  • You may be able to manage your policies online at the same place or through the same agent.
  • It’s easier to identify coverage gaps.
  • Depending on the company, you may be able to align the renewal periods and effective dates of both policies or combine your billing statements.

There may be other perks as well when you bundle auto and home insurance, depending on the company and state you live in. For example, Safeco has offered some customers who bundle a single-loss deductible. That means, if your car is damaged in the same event that damages your home, such as a fire, your car insurance deductible is waived after your homeowners deductible has been paid.

How to save on home insurance and auto insurance

There are other ways to lower costs on your insurance coverage, in addition to bundling.

  • Other home insurance and car insurance discounts: While bundling is among the highest discounts for home and auto insurance, there are lots of other price breaks you can earn. Our guide to the best home insurance discounts provides details on which ones net the most savings, for instance those for new homes, upgrades and advance purchase. Auto insurance discounts that match your driver profile can also save you a lot on your insurance costs. The best deals are for safe and accident-free drivers, but there are many that don't even consider your driving record and are granted for simply paying in advance or online.
  • Compare home insurance quotes and auto insurance quotes annually: Be sure to compare home insurance quotes and do a car insurance quotes comparison from at least three companies for the same insurance coverage at least once a year. The best company for you today might not be down the road if your circumstances change, say you remodel your home, your credit score changes, you add a teen driver to your policy or you have to file a claim. Even if your homeowner and driver profiles remain unchanged, you can save on your insurance rate by comparing insurance quotes because the price for identical insurance policies will differ significantly among carriers.

Frequently asked questions: Home and auto 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.

What information do you need to bundle your policies?

To get an insurance quote and buy the best bundle insurance, either online, over the phone or in person, you will need:

  • Vehicle identification number(s) for vehicle(s)
  • Lienholder information (if applicable)
  • Driver’s license number(s) for driver(s)
  • Credit/debit card for down payment

To obtain a homeowners quote, it will be helpful if you have your current homeowners policy handy so the agent can try to match coverage. You’ll also need to answer questions specific to your home, such as:

  • Value of your home
  • Year home was built
  • Square footage

To purchase a homeowners policy, the agent will need information on:

  • Your mortgage company
  • Your loan number
  • Escrow account (if applicable)

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.

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.

Is it cheaper to bundle car and home insurance?

In some cases, it can be cheaper to bundle a car and home insurance policy, rather than purchase both policies from different carriers. However, you aren’t guaranteed to save money by bundling your auto and home insurance policies. If you’re interested in bundling, it’s a good idea to get quotes from a few insurance companies to find the best auto and home insurance bundle, and the biggest discount.

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