You buy a car. The average national cost of full coverage car insurance is $1674 per annum. However, your rate may be higher or lower depending upon your personal characteristics and whereabouts.
You may be eligible to save money on your auto insurance if you’re a homeowner. Insurance companies may offer discounts when you bundle your auto and home insurance together. Although bundled rates may not be the most affordable, having a home could help you qualify for lower rates on your car insurance.
The key takeaways
- Even if your home and car insurance are not combined, many insurance companies offer homeownership discounts.
- Bundling your home and auto insurance can help you save money and make it easier to work with one carrier. However, this is not always the best or cheapest option.
- Compare rates from multiple companies to find the best deal on home and auto insurance.
Bundles of home and auto insurance
Bundling your home and car insurance means both your car and home are covered by the same insurer. Bundling can save you money and allow you to have everything under one company. Some insurance companies offer bundle incentives such as large discounts and a single-deductible for damage to your home and car.
Condo unit owners and renters tend to get higher discounts than homeowners. This could be because homeowners are more likely to file fewer claims due to their insurance risk.
Best car insurance for homeowners
We reviewed both auto and home insurance companies to find the best car insurance. We analyzed car insurance rates, available discounts and policy offerings to determine the best rates for homeowners. Also, customer reviews and financial strength were taken into consideration.
Allstate
Allstate offers savings up to 25% when you bundle your home and car insurance, regardless of whether you own a condo or home. Allstate offers car insurance discounts that include pay in full, paperless, and safe driving discounts. Homeowners who have never been sued can save up 20% on their home insurance premium. They also get a 10% welcome discount, which can be converted into a loyalty discount every year they stay with Allstate.
Auto-Owners
Auto-Owners provides perks such as waiving your collision insurance deductible in the event of an accident with another Auto Owners insured. Auto-Owners common deductible is available to policyholders. This reduces or eliminates the deductible on your auto if your home and car are damaged in the same covered claim.
NJM Insurance
NJM Insurance offers the lowest and best average annual rates of state minimum and full coverage car and home insurance. NJM Insurance estimates that switching to NJM can help you save up to 20% on your car insurance. Other discounts are available to drivers, such as having more than one vehicle and choosing complete coverage over liability.
Progressive
Progressive offers a 20% discount to new customers who bundle their home and car insurance. Progressive offers multi-policy discounts that can help you save on multiple policies. This includes RV, boat, and motorcycle insurance. Progressive might be the best price for switching providers, with its lower than average national rates for full coverage, and the state minimum.
State Farm
State Farm is the top insurer in the country for car and home insurance. Bundling policies can save homeowners an average of $965 annually. Multi-car discounts can help you save as much as 20% if you have more than one vehicle. State Farm can still offer lower-than-average car insurance rates despite its size.
What are the pros and disadvantages of bundling?
There are pros and cons to bundling of your home and car insurance. Bundling has many benefits.
- Lower rates on home and auto insurance
- For simplicity, all policies can be issued by the same carrier.
- There are potential savings for deductibles depending on the carrier.
Bundling policies can have its cons. You could lose your home or car insurance if you have too many claims. This will result in your other policy being cancelled.
Bundling may not offer the best rates, so it is worth shopping for individual and bundled rates. You can then determine if bundling makes sense for you.
How to get a home and auto insurance bundle
Review both your home and car insurance policies to determine if you should consider a bundle. To compare rates and coverage, call each company to request a quote on the policy that you don’t have.
To compare rates from multiple insurance companies, you might consider getting quotes from at least two additional ones. Switching carriers and cancelling your existing insurance might make sense if the savings are worthwhile.
Questions frequently asked
Do I need to bundle my auto and home insurance?
Bundled discounts are offered by most insurance companies for both your car and home. Bundling insurance may be a better option than having two separate carriers if the savings are worthwhile.
Do you think it is better to combine home and auto insurance?
Bundling policies with one company can simplify things and save money. Bundling home and auto insurance can provide incentives such as a common loss deductible.
How much can bundling car and home insurance save you?
Combining home and auto insurance can help you save up to 30%. However, savings depend on many factors such as your driving record and whereabouts. Rates will be affected by your coverage requirements and home specifications.
