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Bundle home and auto insurance: It’s not always the best deal

Bundling auto and home insurance — buying both policies from the same carrier — can save money and simplify managing policies and bills.

But an auto and home insurance bundle isn’t always the best deal. In some cases, it's cheaper to buy policies from separate companies, or it’s the only option.

The only way to see whether you’ll save money by bundling home and auto insurance is to shop around and compare.

Bundling is simply buying more than one policy from a single carrier. Many car insurance companies give you a break for bundling with multi-policy discounts.

The most common one is the auto and home insurance bundle, but carriers also offer discounts for buying other types of coverage, such as auto and renters insurance or auto and life insurance. Some carriers also offer similar discounts for insuring more than one car.

Learn more: How an auto and renters insurance bundle can save you big

In some cases, you can save 10% or more by bundling home and auto insurance, Diane Delaney, executive director of the Private Risk Management Association, a nonprofit insurance trade organization, said via email.

But there is no guarantee.

“The amount you save depends on your insurance plan, the state where you live, and your carrier,” she said.

Given all the variables, insurance companies don’t advertise an exact amount of savings but rather say it’s possible to save up to a certain percentage or dollar amount.

Best home and car insurance bundles

Below are examples of bundling discounts from some of the nation’s biggest insurers. Keep in mind that the discounts aren’t available in every state:

Allstate: Up to 25%
Farmers: 10% or more
GEICO: Does not advertise an estimated savings amount. (GEICO does not underwrite home insurance but gives a multi-policy discount if you buy auto insurance from GEICO and home insurance through the GEICO Insurance Agency, which sells coverage from other carriers.)
Liberty Mutual: Up to $950
Nationwide: Up to 15%
Progressive: Average advertised savings vary. Progressive sells home insurance provided by a network of companies.
State Farm: Up to 17%
Travelers: Does not advertise an estimated savings amount but does advertise multiple bundling options.
USAA: Up to 10%

Bundling home and auto isn’t for everybody

Despite the discounts, bundling has declined in recent years.

Among auto insurance consumers who own a home, 58% bundled their auto and home insurance in 2024, down from 71% in 2016, according to research by J.D. Power, a data and analytics company. The downward trend began before the pandemic and then accelerated in 2022.

“Ultimately, consumers are looking to save on their auto and home insurance in light of historic rate increases in recent years,” Stephen J. Crewdson, senior director in the Global Insurance Intelligence Group at J.D. Power, said via email. “They are sometimes finding their best deal is to split their policies across multiple carriers, rather than the more traditional approach of saving by bundling.”

Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.

The growth of usage-based insurance (UBI) has also had an impact.

“When consumers can save more on auto insurance by having a UBI policy and place their homeowners insurance with the lowest or near lowest premium, they sometimes find they save more than by bundling the policies with the same insurer,” Crewdson said.

Learn more: How usage-based insurance works for drivers

In addition, some consumers have dropped coverage because they’ve had trouble finding affordable insurance. Crewdson said J.D. Power’s research found an increase in uninsured drivers over the last couple of years, which may have had a small effect on bundling.

Sometimes keeping your policy separate can make more financial sense, Erika Tortorici, principal and founder of Optimum Insurance Solutions, an independent insurance agency in Hamilton, Massachusetts, said in an interview.

For example, a heavy auto claims history or a teen driver on a policy will drive up the cost of car insurance. Your home insurer may not offer the best price on auto coverage, even with the bundling discount.

And if you live in an area with a high risk for hurricanes, floods, wildfires, or other catastrophes, you may have to buy home insurance from a specialized carrier, Delaney said. “This may make bundling impractical or unavailable.”

Another case in which bundling may not work is for luxury property.

“High-net-worth clients with luxury assets, such as classic cars or vacation properties on the water, often require specialized carriers who offer coverages tailored to their specific needs, making bundling less beneficial,” Delaney said.

Learn more: What classic car insurance covers – and doesn’t

Follow these tips to get the best auto insurance coverage at the lowest price.

Understand what you need

Decide the amount and types of auto and home insurance you need. That includes choosing the deductible amounts — the amount you pay out of pocket for home or auto repairs. A higher deductible will mean lower premiums; choose an amount you can afford to pay in the event of making a claim.

“Having a clear understanding of this before or while shopping can help you make more informed coverage decisions and find a policy that aligns with your budget,” Delaney said.

Learn more: What you need to know about car insurance deductibles

Compare prices for auto and home insurance at multiple companies, with and without bundling.

“To be sure you're getting the best price, make certain any combined price from one insurer is lower than buying the coverages separately from different companies,” the Insurance Information Institute advises on its website.

You can buy coverage in a few different ways: directly from a company, through an agent who represents a single company, or through an independent agent who represents multiple companies.

“If you engage with an (independent) agency, they’ll do that shopping for you,” Tortorici said.

Independent agents can advise on what to bundle or not bundle and are especially helpful for homeowners with unique needs, such as high-value properties or homes in high-risk areas, Delaney said. “They can tailor policies to provide the most comprehensive protection.”

However, keep in mind that while independent agents represent multiple companies, they don’t represent every company out there, so it can pay to do some shopping on your own too.

Make sure you get all the discounts you qualify for. Bundling is one of many that are offered.

Learn more: How to get all the best car insurance discounts

Sometimes, companies that can’t sell you one type of coverage, such as home insurance, will still give you a discount on auto insurance if you show that you got the home insurance coverage elsewhere, Tortorici said. It doesn’t hurt to ask.

Do a financial checkup once a year to ensure that your auto and home insurance have kept up with your needs. Then, get some quotes to compare prices and choose the company — or companies — that offer the best deal and service.

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