How to bundle auto and home insurance

What is an insurance bundle?

An insurance bundle is two or more lines of insurance bought through one insurance company. The most common bundle pairs home and auto insurance together for a discount on both policies.

With insurance, “the whole idea is everyone's chipping in a little for potentially a large benefit. So, when you bundle everything with one company, they're going to be able to offer you discounts,” says John Oakden, personal lines advisor at The Mahoney Group.

That’s because the data for insurers typically shows that customers who bundle insurance products, and therefore pay more in premiums, are typically more profitable as insurance customers, explains Oakden. “So they get a better price.”

From an insurer’s point of view, though, bundling isn’t the only thing that matters to their business. The advertising around bundling can be a little misleading, says Oakden, “because the important element of insurance is tenure. Staying with a company for a long time is generally better for the insurance company.”

Benefits and drawbacks of bundling insurance

One of the main benefits of bundling insurance is that you can get a multi-policy discount, which averages 15%; State Farm offers an average discount of 22%.

Bundling isn't always cheaper. If one carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. offers a much cheaper rate on one of the policies, it may save you more than a bundling discount overall.

Another potential benefit of bundling is that you can simplify your insurance management. Handling everything through one insurer might be easier for you.

Here too, however, there can be a risk. If an insurer cancels one of your bundled policy lines, you could potentially lose the multi-policy discount, thereby no longer making it cost-effective to have that other type of insurance with them.

“So the biggest drawback when you bundle is if you lose one policy, then you're [typically] going to have to move both,” says Oakden.

How to bundle home and auto insurance

To bundle home and auto insurance, buy both policies from the same carrier. That may mean moving your home policy to your auto carrier, your auto carrier to your auto carrier, or taking out new policies for both with a new carrier.

Follow these steps to get a home and auto bundle:

Request bundled quotes from your current carrier(s). Start with insurance companies where you already have at least one policy. Get a quote to move your auto to your home insurance company and vice versa.
Request quotes from other carriers, both bundled and separate. Compare the cost if you buy coverage from one company or from multiple companies to ensure the bundle is the best deal.
Choose your bundle. Once you've found the bundle with the rates and coverage that work for you, complete the application process and pay your premiums.
Cancel any policies you switched to a new carrier. Ensure you've canceled the coverage only after the new coverage is in place.

Take your time to shop around and find the best home and auto bundle for your needs.

You can also get a discount for bundling auto with renters insurance if you don’t own a home.

The best way to shop for home and auto insurance

The best way to shop for home and auto insurance is to get quotes from different providers. Look at the prices for buying policies from separate insurers vs. the combined cost if you get a bundle discount.

And don’t be afraid to ask questions. If you’re unsure about pricing, such as when looking at bundle discounts vs. separate policy prices, ask your insurance agent or the company you’re getting quotes from. Make sure you understand what policies cover too, not just what they cost.

FAQ: How to bundle auto and home insurance

Is it cheaper to bundle home and auto insurance?

Bundling insurance is cheaper than the unbundled rates for each policy with the same carrier, and may be the cheapest option overall, with an average discount of 15%. However, buying separate policies from two different carriers is sometimes cheaper, especially if one carrier offers a much lower rate on one of the policies.

Should I bundle home and auto insurance?

Bundle home and auto insurance if the combined rate is cheaper than buying from two different carriers, or if you prefer to have all of your insurance in one place, even if it's not cheaper. Compare your options before you decide.