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- Insurance bundling can save buyers 5-20% according to some insurance companies.
- Insurance bundling makes it easy to manage multiple insurance policies in one place.
- You can bundle auto, home, umbrella, life, and other insurance policies.
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"Bundling insurance policies can be a great way to save money and simplify your finances. But it's important to understand the pros and cons of this approach before you decide whether or not it's right for you," says John Espenschied, agency principal and owner of Insurance Broker Group, an independent insurance agency.
Some customers bundle by quoting online. Others work closely with an insurance agent to compare options and decide what is best. Some insurers now offer single policies with home, auto, umbrella, or other common combinations instead of bundling multiple policies. Often, deciding between the two comes down to price. So where will you save money while getting the coverage you want?
How to bundle insurance policies and save money
Bundling your home and auto insurance policies is an excellent way to get a competitive rate on coverage. Your insurance agent can quote both at the same time. In addition, if you manage your policy online, many insurers will allow you to quote and add home or auto insurance coverage from the comfort of your home.
If you have specific insurance companies in mind, start online. Many insurers will allow you to run your quote there. However, be prepared for insurers like State Farm or Allstate to give your information to an agent to get a formal quote. In addition, many insurers allow shoppers to click a button indicating they want to bundle policies. If your answers match what the insurer is looking for, it will give you a quote.
Alternatively, you can expedite the process by working with a broker agent to help you acquire multiple quotes from different companies. Captive agents working for companies like Allstate and State Farm can only quote for those companies. However, brokers may quote for many local companies, Progressive, Liberty Mutual, etc.
Regardless, when you work with an agent, you have an expert to double-check everything for you and ensure you get all applicable discounts. Then, once you find insurance that makes sense, finalize your application online or with your agent, and set up your payment.
Home and auto insurance bundling discounts from popular carriers
Here are discount rates from some of the largest insurance companies to show how much you might save.
Insurance company | Average home and auto insurance bundling discount |
23% | |
18% | |
18% | |
15% | |
15% | |
15% | |
10% | |
7% | |
6% |
Benefits of bundling your insurance policies
"One of the most beneficial perks of bundling policies is the quick savings you can gain. It also makes billing streamlined and efficient while keeping things organized in one central location for the consumer," says Beth Swanson, licensed insurance agent at The Zebra, an insurance quote comparison tool.
- Saves money: Bundling insurance policies saves shoppers an average of 15% on their premiums. Home and auto insurance bundles are the largest discounts providers offer, according to Insurance.com.
- Convenient: Bundling multiple insurances with the same companies makes managing and making payments on both policies easy.
Is it always better to bundle your auto and home insurance?
Bundling your home and auto insurance policies can help you score significant savings, but it isn't always the best idea. Each buyer should look at their situation to determine what makes sense.
A company may offer excellent customer service and full coverage options in one area of insurance while lacking in another. For example, even within types of auto insurance, an insurer may be suitable for modest family cars but bad for motorcycles, work trucks, etc. So, you can forgo the discount and pay extra for coverage at separate companies.
Another reason you may decide not to bundle policies is that a company's bundling discount may not have the best savings. For instance, say you have a traffic violation on your record, which increases your rate with a provider. The most affordable car insurance companies for you may not offer the lowest prices for drivers with clean records.
"Consumers must weigh the insurance bundling's cost against its benefits to ensure they're getting the best deal when purchasing coverage," mentions Espenschied.
How do you know if bundling is right for you?
One of the critical things to do when shopping for insurance is to compare quotes. Whether you're just shopping for auto insurance or looking to bundle home, auto, life, and pet, comparing quotes is the only way to confirm you're getting a good deal.
Captive agents from companies like Allstate and State Farm can quote for those companies with all applicable discounts. Companies like
A licensed agent will know what questions to ask to assess your situation. Then you can make informed decisions for your insurance needs. Agents can advise you where to cut coverage to save money, leading to a better insurance experience.