The benefits of bundling your home and auto insurance

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Insurance companies offering different insurance lines often offer bundle discounts, also known as multi-policy discounts. Multi-policy discounts are most popular for auto and home insurance bundles. Bundling insurance doesn’t mean your auto and home are covered under the same policy. It only means they are insured by the same carrier. These discounts can often be the biggest and most cost-effective way to save hundreds on your auto and home insurance policies.

Bundling auto and home insurance is a smart idea

Bundling your home and auto insurance can help you save significant money and make it easier to manage your insurance. It could be worth it to get quotes from both your home and car insurance with the same company.

Bundling may not be the best fit for all drivers or homeowners. Some drivers, like high-risk drivers, might be limited in their choice of auto insurance companies. Bundling two policies may not be possible because not all auto insurance companies sell homeowners insurance. Similarly, if you have very specific needs for your home insurance — perhaps you made a personal liability claim recently and your policy needed to be switched to a high-risk home insurance company — bundling may not be an option for you.

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Bundling might not be financially advantageous in some cases. While one company might offer low rates for car insurance, another company could offer the lowest home insurance rate, even with a bundling discount. Bundling home and auto insurance can offer some advantages. Bundling can make both your home and auto insurance cheaper and easier to manage.

Save!

Perhaps the most significant benefit of bundling policies is the opportunity to save money on your premium. Bundling policies can be a great way to save money on auto and home insurance. These discounts can often be some of the best savings options. It is important to compare quotes from multiple insurers for your auto and home bundle. Every company has its own rating systems and discount levels, so comparing several insurance companies for both types of coverage might help you find the best deal for you.

Convenience

Multiple insurance products can help you manage your insurance more efficiently and quickly. It is possible to view both policies’ information in one online account or through the company’s mobile application. It can be difficult to keep track and update contact information for insurance policies from different companies. This could make filing claims or making changes more difficult. You may find it easier to manage your insurance needs by having your auto and home policies with the same carrier.

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There are fewer bills

You might be able combine your bills depending on how you pay your home insurance. This can help you budget. Your mortgage lender will typically bill your home insurance and pay it from your escrow account. If you don’t have an escrow account or you own the home, your home insurance might be paid directly. You may be able combine multiple policies into one billing account if this is the case. This means you’ll only get one bill per billing cycle, regardless of whether you pay monthly or quarterly, semi-annually, annually, or every other year.

Single deductible

Some carriers offer a single deductible feature when you have both your car and home insured with them. The details will vary from insurer to insurer but this means that, in the event of damage to your home and car from a single event (e.g., a storm dumping your roof onto your garage or parked car), you will only have one deductible.

Best auto and home insurance packages

Multi-policy discounts are offered by most insurers who sell auto and home insurance. However, the savings can vary depending on which carrier you choose. Both policies will usually offer savings. This table shows how much you can save on auto insurance by bundling policies from some of the most reputable U.S. insurers.

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When shopping for policy bundles, it is important to review your quotes carefully. While finding a good price for your insurance is important, the premium should not be the only thing you review when comparing quotes. Consider the policy features and coverages for each quote, including customer satisfaction ratings and financial strength.

How to combine your home and car insurance

It is easy to bundle your home and car insurance. It may seem like you’re getting combined auto-home and home insurance policies, but this is not often the case. Some companies offer both auto and home policies under one policy number. To get a discount on your home and auto insurance, you will need to buy them from the same company. These are the steps to combine your policies.

  1. You can decide what you want from an insurer. You can determine if you want exceptional customer service, a highly-rated mobile app, or specific coverages to help you choose which companies you will get quotes from. You may find it helpful to consult an insurance professional for guidance during this process.
  2. Get quotes from several companies. You can get auto and home quotes from multiple companies once you have identified the coverages and qualities you want.
  3. Each quote should be carefully reviewed. Each auto and home quote should be carefully reviewed to ensure that the details, premiums and coverage are correct and meet your needs.
  4. Select a company to start your policies. After you’ve chosen the best insurer for your auto and home insurance needs, your representative will walk you through how to start your policy.
  5. Cancel any previous insurance policies. If you already had home and auto insurance with other carriers, you will need to cancel your policies. When switching to a new carrier, it is typically best to wait to cancel your prior policies until you know the effective date of the new policies, so you can avoid a lapse in coverage.
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Bundling is a great way to save money

Although bundling your home and auto policies can save you money, there are still ways to maximize your savings.

  • Compare quotes from multiple insurance companies. It is important to get quotes from multiple insurance companies, since every carrier has its own rating system. You could get a 25% bundling discount with one carrier but the underlying rates could be higher than others. This could result in you saving more with a carrier with lower rates, even though their bundling discounts may be smaller.
  • You can take advantage of other discounts. Multi-policy discounts on auto and home insurance do not mean you can’t apply other discounts. You might be able to save more money by using other discounts you are eligible for.
  • Your deductible should be increased. The deductible on your home policy is the amount that you will have to pay out of pocket in case you need to file a claim for property damage. Your full coverage auto policy will have two deductibles. One for collision and one for comprehensive. Your premium will be lower if you increase your deductibles. It does however mean that you will have to pay more out-of-pocket if you file a claim on your home or vehicle for damage. So make sure you choose the deductible you can afford.
  • When life happens, it is a good idea to review your policies. While staying with one insurer can earn you loyalty discounts over time, it can also be a great way to get your coverage compared with other carriers. This can allow you to see if the bundle is still competitively priced. You may find it helpful to shop insurance for major life events, such as getting married, having children, or moving.
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Questions frequently asked

Which is the best company for home insurance?

There are many home insurance companies on the market. Not one company is right for everyone. To find the best home insurance company for your needs, you might want to get quotes from several providers and compare the coverages, discounts, policy features and premiums.

Which is the best auto insurer?

Just like with home insurance, no auto insurance company is the best for every driver. Every driver has different needs, rating factors, risk tolerance levels, and wants in regards to insurance companies. It can be useful to understand what you want from a company, and get multiple quotes.

What policies are possible to combine?

Bundling discounts are most commonly offered for auto and home insurance policies. Many providers offer discounts for bundling auto insurance policies with condo owners and renters insurance policies. Bundling discounts are offered by some companies for purchasing other types of insurance policies, such as life insurance, pet insurance, or business insurance.

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Does it make sense to combine auto and home insurance?

Bundling your policies can be financially beneficial if you are eligible for auto and home insurance from the same carrier. Multi-policy discounts can often be the best discounts offered by insurers. You might be able to purchase separate home and auto policies from different companies, and still receive a lower rate for each. Bundling might not be possible if you don’t have any other lines of insurance.