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CAR INSURANCE INSIGHTS

One of the biggest discounts you can get from your insurance carrier is for bundling renters and auto insurance. You could save, on average, 6% when you buy auto and renters insurance together.

If you’re among the millions of Americans who rent and have at least one vehicle, insurance is probably a significant expense. Car insurance is mandatory in most states, but renters insurance isn’t. If you’ve skipped renters insurance for your belongings, you’re missing out on one of the most valuable — and affordable — coverages around.

Did you know that buying auto and renters insurance from the same provider can save you time in managing the policies and money? One of the biggest discounts you can get from your insurance carrier is for bundling renters and auto insurance. You could save, on average, 6% when you buy auto and renters insurance together.

Some insurance companies offer higher discounts, even up to 24% while some offer lower than average, as low as 4%. So, it’s important to know which ones have the best and cheapest auto and renters insurance bundles.

5 companies that offer the best auto and renters insurance bundle discounts

The following five companies are our picks for the best auto and renters insurance bundle discounts. They were chosen due to several factors:

  • Savings: Insurance carriers offering the biggest renters/auto discount made the cut.
  • Features: Companies committed to a better experience for policyholders provide features such as a robust mobile app, local agents and an online learning library.
  • Financial strength: We looked at A.M. Best’s credit ratings and chose insurance companies with the greatest financial strength that would be most likely to pay out losses in case of a widespread disaster.
  • Availability: The five best carriers offer insurance nationwide and are among the largest in the country in the number of policies written.

Allstate

Allstate’s renters insurance is one of the most affordable, starting at $4 per month for coverage. However, Allstate is best-known for car insurance. Rates can vary greatly, depending on your location, vehicle type and driving record.

Allstate has a full-featured mobile app that lets you manage your policies and make payments all in one place. Filing a claim is also possible through the app. If you prefer to work with an agent, you’ll find Allstate has thousands of local agents nationwide, available to help you file a claim or get the most out of your insurance policies.

A general quote returned a rate of $1,876 per year for auto and renters insurance, including savings for bundling of 5%. Besides a multi-policy discount for bundling a car and renters insurance package, seniors could save further by using the 55 and retired discount, which could reduce premiums as much as 25% off.

Farmers

Like Allstate, Farmers has a strong local presence of dedicated agents. Farmers has unique auto insurance discounts available, such as an alternative-fuel discount that could help you save 5% when you drive a hybrid or electric vehicle.

Farmers provided a 10% discount on vehicle coverage for bundling renters and auto insurance, for an annual price of $1,388. Further savings are possible if you take advantage of renters-insurance discounts such as having a home security system or not smoking.

Farmers’ strength lies in the relationships policyholders build with their local agents. However, they’ve recently redesigned their website and mobile app to provide a more user-friendly digital experience renters and car owners could access 24/7.

Geico

Geico is well-known for providing cheap renters and auto insurance. Why not bundle them and double down on the savings?

Geico is one of the largest insurance companies in the country but doesn’t have local offices or an interactive website. It can be considered low-frills when it comes to the extras, but when you’re in search of quality coverage, Geico doesn’t skimp.

Geico delivered the cheapest auto and renters insurance bundles of the companies reviewed, at $1,163 per year. Geico’s bundling discount was only 5% but the rates were already lower than average. The bulk of the quote was car insurance. Geico renters insurance rates start at only $12 per month.

Nationwide

Nationwide’s renters and auto insurance policies are generally affordable. According to the carrier, a renters insurance policy averages $20 per month. While car insurance is typically more expensive than a renters policy, Nationwide offers several discounts that could help you reduce the cost of coverage.

The total annual premium for Nationwide’s bundled renters and auto insurance (including a 15% bundling discount on the auto coverage) was $1,264.

However, you may be able to save further. Nationwide offers a free On Your Side® Review. It’s a virtual meeting with an agent who could review your policies to make sure you’re properly covered and help you find ways to save. SmartRide, the carrier’s usage-based program, may provide the most significant savings. You’ll need to sign up and download the mobile app, which tracks your driving and awards discounts for safe habits. Simply enrolling earns you 10% off. And depending on your driving, you could get up to 40% off more.

State Farm

State Farm is the largest insurer in the U.S. and one of the oldest. It provides insurance as well as financial services, such as banking, investments and retirement planning, potentially making it a one-stop-shop for your insurance and financial needs.

According to State Farm, new customers saved up to $722 per year when they bundled auto and renters insurance. We requested quotes for car and renters insurance separately and then as a bundle to compare. Renters insurance costs $338 per year and the minimum car insurance was $1,245. The annual premium for bundled renters and car insurance was $1,197. That’s a 24% discount for bundling a car and renters insurance package.

To find the biggest savings, regardless of the state you live in, get quotes from some of the following companies offering cheap car and renters insurance bundles:

How much you can save with renters and auto insurance bundle
CompanyCar insurance costCost with auto and renters bundleSavings
Allstate$1970$1,876$94
Farmers$1,526$1,388$139
Geico$1,221$1,163$58
Nationwide$1454$1,264$190
State Farm$1,484$1,197$287

Companies that offer cheap renters and auto insurance bundles

The top five carriers reviewed provide the best auto and renters insurance bundles. However, there are cheaper options, which may be a necessity if you’re on a tight budget. When it comes to car insurance, it’s difficult to average out a price, simply because each state has its own car insurance requirements and so many variables can affect your premiums. Using Insurance.com’s comparison tool, the annual minimum car insurance in Hawaii is $394 per year, while Michigan’s average premium is $3,047.

Insurance.com’s study on renters insurance found that smaller, regional carriers often have cheaper premiums. Some of the cheapest are:

  • West Bend: $98
  • Vermont Mutual: $119
  • Pemco: $143
  • Nationwide: $146

However, not all cheaper insurance companies offer bundling discounts. You’ll need to get quotes to compare and decide if you’re better off buying renters and auto insurance together — or individually.

Should I bundle car and renters insurance?

While bundling is a great way to save money, it may not be the best choice for everyone. Consider the following pros and cons of bundling a car and renters insurance before you make the jump.

Pros

Savings: The biggest reason why most people choose to bundle policies is to save on premiums. You’ll typically get cheap car and renters insurance when you bundle them. And the more policies you have with one insurance company, the more you could save.

Convenience: Having multiple policies with one insurance company could eliminate many hassles. You could streamline your payments to be due at the same time and reduce the amount of paperwork you need to deal with. Plus, managing and reviewing your policies from a single mobile app makes it easier to keep informed.

Loyalty: Having more than one coverage with an insurance carrier can be helpful in establishing a relationship with an agent or company, especially if your relationship continues over time. It could come in handy if you need a special concession from your carrier in the future, such as the removal of a late fee or help with a delayed claim.

Cons

One premium could affect the other: If you have claims on one policy, they could affect the overall cost of coverage for both. A carrier may even flag your other policies if they believe you’re a high-risk driver, for example, which could cost you more overall.

You may get less coverage: Some insurance companies will reduce coverage limits to make a bundled offer more attractive. You may think you got a great deal, only to realize later that the savings were a result of less insurance. If you decide to bundle your policies, make sure you review each policy carefully to confirm you’re getting what you believe you’re paying for.

The savings aren’t there any longer: All policyholders should periodically get insurance quotes to see if they could save on their coverage. It gets more complicated when you bundle insurance. You may find that your renters insurance is cheaper bundled, but you could save considerably on car insurance through a different carrier. Don’t be afraid to break up a bundle if it saves you money. The extra work of managing two separate policies may be worth it.

How to compare car and renters insurance bundle quotes and multi-policy discounts

To get the best car and renters insurance bundle, consider the following approaches:

Collect quotes

Getting auto and renters insurance quotes from each insurance carrier takes time, but will give you a good idea of how much you should pay for coverage. When shopping around, get quotes for vehicle and renters insurance separately and then bundled to compare. Luckily, most carriers have user-friendly online quote tools that make it possible to collect pricing in just a few minutes.

Talk to an independent agent

An agent that sells insurance from several companies can save you time shopping around and comparing quotes. They can outline quickly what carriers offer the best deals and give you some car and renters insurance bundle quotes to consider.

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