How Bundling Home and Auto Insurance Can Save You Thousands
If you own a home and drive a car, bundling your insurance policies could be one of the easiest ways to save big without cutting corners on coverage. In fact, according to the National Association of Insurance Commissioners (NAIC), homeowners who bundle home and auto insurance save an average of 15%–25% on their annual premiums.
But the benefits go beyond just discounts. Bundling can streamline your finances, simplify the claims process, and unlock perks you might not get with separate policies. Still, it’s not always a slam dunk—there are pitfalls to watch out for.
Here’s a complete breakdown of how bundling works, when it makes sense, and how to do it right.
What Does It Mean to Bundle Insurance?
Bundling also called a multi-policy discount means purchasing more than one type of insurance (typically home and auto) from the same provider. Insurers reward your loyalty with lower rates and other conveniences.
Some companies even allow bundling of:
- Home + auto
- Auto + renters
- Home + life + auto
- Condo + auto
In most cases, bundling policies leads to a combined discount on both premiums.
The Financial Upside: Real-World Savings
Let’s talk numbers.
Average Bundling Discounts in 2025:
- State Farm: Up to 17%
- Progressive: 20–25%
- Allstate: Up to 25%
- Liberty Mutual: Around 20%
- Nationwide: Up to 20%
Real-World Example:
Before bundling:
- Auto insurance: $1,400/year
- Home insurance: $1,200/year
Total: $2,600/year
After bundling with a 20% combined discount:
- Bundled premium: $2,080/year
Annual savings: $520
That’s over $2,500 saved across five years, just for putting your policies under one roof.
Why Bundling Makes Sense for Homeowners
1. Major Discounts
The most obvious reason is the significant savings. Insurers want more of your business, so they give you price breaks to keep you under one roof.
2. Simplified Billing
One insurer, one bill. Many providers offer a combined statement or let you manage everything from one app or account dashboard.
3. Streamlined Claims
If your car and home are damaged in the same event—say, a hailstorm—you only need to deal with one claims adjuster. Some providers also offer:
- A single deductible for a bundled event
- Coordinated repairs from a shared network of contractors or mechanics
4. Loyalty Rewards
Bundled policyholders are often eligible for perks like:
- Diminishing deductibles
- Accident forgiveness
- Free roadside assistance
- Enhanced customer service queues
Common Pitfalls to Watch Out For
Bundling isn’t always the best deal. Here’s when to pause before combining:
1. False Savings
Sometimes, one insurer might offer a great deal on home but overpriced auto—or vice versa. Always compare bundled vs. unbundled rates to be sure.
2. Reduced Flexibility
Sticking with one provider for both policies may make you less likely to switch if one rate rises. You might miss better deals elsewhere if you’re too committed to convenience.
3. Overlooking Coverage Gaps
Not all policies are created equal. Just because two policies are from the same company doesn’t mean they’re top-tier. Be sure the coverage limits, exclusions, and deductibles work for you.
Best Companies for Bundling in 2025
Here’s a snapshot of who’s doing bundling best this year:
| Company | Max Discount | Bundling Perks |
|---|---|---|
| State Farm | 17% | One deductible for related claims, local agents |
| Progressive | 25% | Name Your Price tool, safe driver rewards |
| Allstate | 25% | Deductible rewards, accident forgiveness |
| Nationwide | 20% | Annual policy review, smart home discounts |
| Liberty Mutual | 20% | Customizable coverage, mobile-first experience |
How to Bundle Smart: Step-by-Step
- Gather Quotes from Multiple Providers
Use online tools like The Zebra or Policygenius to compare apples-to-apples bundles. - Match Coverage Limits
Make sure each quote uses the same deductibles, limits, and coverage types so you’re comparing fairly. - Ask About One Deductible Options
Some insurers offer one deductible across home and auto claims—ask if this is available. - Check Customer Service Reviews
Don’t sacrifice service just for price. A few extra dollars a year are worth better claims support. - Review Annually
Your life changes. So should your policy. Set a reminder to shop around every year.
When NOT to Bundle
There are a few cases where bundling may not be ideal:
- You have a specialty home or luxury car that needs niche coverage
- You’re eligible for military or profession-based discounts with a specific carrier
- One policy (e.g., auto) has multiple recent claims, raising bundled rates
In those cases, separate policies may offer better value. Always run the numbers before committing.
Bottom Line
Bundling home and auto insurance is one of the easiest ways to unlock serious savings—often hundreds per year. It also makes managing your coverage more convenient and often earns you loyalty perks.
Still, don’t assume it’s always the best move. Compare offers, check the fine print, and look at the big picture—both in price and service.
Ready to take your savings a step further? Learn how refinancing your mortgage can reduce both your insurance costs and your monthly payment in one smart move:
How to Refinance Your Home and Reduce Insurance Costs Together
