Bundle Insurance: Best Home And Auto Insurance Bundles Of 2023

Home and auto insurance bundles can get you a decent multi-policy discount with most insurance companies. If you have both a home and car to insure, one way to potentially save time and money is by purchasing both your home and auto insurance with the same company.

In fact, shoppers can get a discount of 18%, on average, when bundling their home and auto policies, according to an analysis from NerdWallet on rates from four of the largest insurers.

What is an insurance bundle?

Buying your home and auto insurance from the same company is known as “bundling,” and it usually gives you a discount. Think of it as an easy and popular way to cut costs without cutting coverage.

The good news is that bundling is pretty common. Many insurers offer the option to bundle multiple products together. Depending on your insurer, you may see bundling referred to as a multipolicy, multiline or multiproduct discount.

If you bundle car and homeowners insurance, you may get benefits like:

Insurance security. If you’ve made auto insurance claims or gotten tickets, having other policies with the same company can make it less likely the insurer will drop you because of those incidents.
Lower premiums. A multipolicy discount could save you as much as 25%, according to some insurer websites, depending on the company and where you live.
Simplified policy management. It’s easier to manage multiple policies when they come from the same company.

Home and auto insurance bundle discounts

How much you can save when you bundle auto and home insurance depends on where you live and the company that insures you. However, not all companies or discounts may be available in your state, so check to see which option is best for you.

USAA

USAA earns the highest financial strength rating available for insurance companies: an A++ from AM Best. While available nationwide, USAA’s auto and homeowners insurance policies are only available to its members.

Membership to USAA is reserved for qualified members of the military and their families. The insurer offers all of the standard coverages for its auto insurance policy, as well as common discounts such as for maintaining a clean driving record. The same goes for its homeowners’ insurance policies. Identity theft protection is also included, unlike some competitors.

USAA’s standard homeowners insurance policy includes uniform coverage for active-duty and deployed service members. It also includes replacement cost coverage for personal belongings and the overall discounts offered aren’t as high compared to other competitors in our rating.

That being said, USAA does offer a discount for military members, something not all insurers offer.

Amica

Information on Amica’s website states that policyholders can save up to 30% if they bundle their home and auto insurance. In addition to a generous discount, the company has an array of coverage options. Amica also receives fewer complaints from state regulators than expected for a company of its size.

Homeowners who want additional coverage on top of Amica’s standard home policy can buy the Platinum Choice package, which includes extended dwelling coverage and increased liability limits. Meanwhile, drivers can purchase extras like full glass coverage or prestige rental coverage, which covers up to $5,000 for a comparable rental car if your vehicle is in an accident.

Bundling isn’t the only discount Amica offers. Depending on your state, you could also save money by:

Being insured by any auto insurer for at least two years.
Insuring more than one car.
Equipping your car with anti-theft devices like car alarms or GPS tracking systems.
Going without an auto insurance claim for at least three years.
Insuring a new or remodeled home.
Signing up for paperless billing or autopay.

Allstate

Allstate offers standard coverage that’s similar to what competitors offer for their auto and homeowners insurance policies. Some optional add-on coverage for auto insurance includes classic car insurance, roadside coverage, and rideshare insurance. Allstate’s homeowners’ insurance policy has several optional coverages, including identity protection plans, insurance against water backups, and coverage in case the homeowner needs to make additional repairs to meet building codes.

One interesting coverage option for homeowners is Allstate’s HostAdvantage home-sharing insurance. Policyholders will be protected if their belongings are stolen or damaged while there are renters in the home.

While policyholders can file a claim and manage policies online through Allstate’s app, applicants will need to call the insurer or work with an agent to purchase a policy. Plus, policies may cost more compared to other competitors, although Allstate does provide some discount opportunities, including bundling, that could lower premiums.

State Farm

With an A++ insurance rating from AM Best, State Farm offers many coverage options for both car and homeowners insurance policies. For instance, homeowners can purchase additional coverage for home businesses, sewer or drain backup, identity restoration protection, and increased limits for ordinance or law coverage.

Applicants can qualify for a reduction on their premium when bundling home and auto, plus a whole slew of other discounts are available. These include savings for installing home-security devices, going claims-free for a set period of time, and being a loyal customer.

Policyholders can take advantage of several other features including filing claims online, and a mobile app to view, modify and pay for their premiums. You can begin the quote process online, but applicants will need to work with a State Farm agent to purchase coverage.

American Family

American Family says policyholders can save up to 23% when they bundle home and car insurance. The company offers strong customer service too, drawing fewer consumer complaints to state regulators than expected for an insurer of its size.

In addition to standard car insurance coverage, you can also add Diminishing Deductibles to your policy. With this feature, American Family will reduce your deductible — the amount of a claim you’re responsible for — by $100 for each year you drive safely.

Diminishing Deductibles are also available for homeowners insurance, along with a variety of other add-ons. For example, you can buy coverage for water damage from backed-up sewers and drains, or for major appliances that break down.

Aside from a bundling discount, you may be eligible for savings if you:

Install certain smart devices in your home.
Own a house that’s less than 15 years old.
Have renovated your home recently.
Insure more than one vehicle with American Family.
Drive fewer than 7,500 miles per year.
Sign up for an autopsy.

Country Financial

Country Financial is another great option for bundling. The company has strong customer satisfaction, with far fewer complaints to state regulators than expected for a company of its size. It offers a wide range of home insurance coverage options depending on the policy you choose.

Some policies cover issues like countertop burns or a power surge that damages electronics. And, in most states, the company offers guaranteed replacement cost coverage, which has no limits on how much it will pay for new construction materials and labor to rebuild your home.

Auto insurance coverage options include new car replacement, which can pay for a new vehicle after an accident even if yours is a couple of years old. You can also add vehicle rental and trip interruption, which reimburses up to $800 for a rental car if you’re in an accident while away from home. It also covers some transportation, lodging and meal expenses if you’re in an accident more than 100 miles away from home.

The company offers a variety of discounts. Depending on your state, savings may be available for things like:

Installing smoke detectors and automatic sprinkler systems in your home.
Getting a quote before your policy expires.
Insuring a car with an alarm or anti-theft device.
Going without tickets or accidents for at least three years.
Working as a teacher, firefighter, police officer, emergency medical technician or paramedic.

Pros and cons of bundling home and auto insurance

Bundling home and auto insurance policies with one company has advantages, but it isn’t always the best path to take. Here are factors to consider.

Pros of bundling home and auto insurance

Save time: Having only one insurance company to deal with for payments and customer service is convenient and can save you time.
Save money: By bundling, you receive a bundling discount (also called a multi-policy discount) for buying home and auto insurance policies with the same insurance company. The average discount is 14%, which is a savings of around $466 a year, according to Forbes.
Have a single deductible: Some companies, such as Progressive, apply one deductible to bundled home and auto policies if the damage is done to your house and car in one event. For instance, if a bad storm causes a tree to fall, damaging both your car and home, with a single deductible you’d pay one deductible for the incident instead of two separate deductibles.
Multiple policies, one account: You can manage your bundled home and auto policies under one online account or mobile app with many insurers.

Cons of bundling home and auto insurance

Not necessarily more convenient: If your car insurance company partners with a different home insurance company to give you a bundle discount, you won’t get perks like having one account. Instead, you’ll still have to deal with two companies for payments, services and claims.
Not always the best buy: You may be able to find cheaper prices for auto and home insurance policies by buying them separately from different companies. It pays off to get quotes from a few insurers.
Doesn’t fit your needs: If you want certain coverage types that aren’t available with a company that bundles home and auto insurance, then it’s better to stick with a company that gives you the coverage you want. For example, not all home insurance companies offer extended replacement costs for situations where the cost to rebuild your house turns out to be higher than the dwelling coverage amount listed on the policy.

Should you bundle home and auto insurance?

Bundling home and car insurance together may save you money, but not in all cases. To decide if bundling makes sense for you, compare the quotes for separate home and auto policies to quotes for bundled policies. If separate policies are cheaper than a bundled rate, there’s no reason to buy them together.

Bundling will probably save you the most money if your home insurance is more expensive than your auto insurance. In most cases, pricier policies get steeper discounts. And because home insurance policies typically cost more than car insurance, discounts on homeowners insurance tend to be higher.

But if you have violations on your driving record, poor credit, or live in a state with high car insurance rates, your auto insurance could easily be the more expensive policy. In this case, the savings from choosing cheap auto insurance could dwarf a 20% discount on a bundled home policy.

It all just comes down to your unique situation.

Tips to get effective home and auto insurance bundles

If you feel that bundling home and auto insurance is the perfect option for you, take these steps to maximize savings:

Compare bundles from different insurers, either online or with an agent. An independent insurance agent can get prices from multiple companies and help you get the best rate.
Shop for quotes regularly. The cost of home insurance and the cost of auto insurance can change from year to year. Getting new insurance quotes for both bundled and separate policies can ensure you’re getting the best rate possible.
Check for third parties. Ask if the insurer uses a third-party insurance company (sometimes called an affiliate) for either policy you want to bundle. Although you may still save money, you’ll lose convenience because you won’t be dealing with just one insurance company.

Bundle Insurance: Best Home And Auto Insurance Bundles Of 2023

What is an insurance bundle?

Home and auto insurance bundle discounts