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Home and car insurance bundles: what to know

Many people own two primary insurable interests: their vehicle and their residence. No matter whether these items are owned or leased, insuring each of these items is a great idea, and covering them with one insurance company can be an even better option for those interested in saving money.

While bundling home and auto insurance has definite benefits, there are also scenarios in which it might not be the best idea. Read on to learn more about the dos and don'ts of bundling homeowners and car insurance policies.


Best insurance companies for bundling auto and home

top rated bundling
Top rated for auto and home — USAA

Homeowners ranked USAA as the best overall auto insurance company in The Zebra's Customer Satisfaction Survey.

The Zebra conducted a survey with the intention of understanding carriers from a customer's perspective. We asked how each major carrier held up in online experience, claims satisfaction, ease of use, customer service, trustworthiness and willingness to recommend.

In our group of 15 insurance companies, respondents who are homeowners rated USAA as the top provider for home and car insurance, winning first place for claims satisfaction, willingness to recommend and trustworthiness. Erie, a regional company, won second place overall but overtook USAA in two categories: ease of use and customer service.

For homeowners who don't qualify for USAA coverage or live in a state in which Erie is active, GEICO came in third place overall and was highly rated for its online experience.

Rank Company Customer Satisfaction Rating (out of 5)
1st USAA 4.6
2nd Erie 4.6
3rd GEICO 4.4
4th State Farm 4.4
5th American Family 4.4
6th Progressive 4.4
7th Travelers 4.4
8th Allstate 4.4
9th Farmers 4.3
10th Auto-Owners 4.3
11th Liberty Mutual 4.3
12th Nationwide 4.3
13th National General 4.3
14th Kemper 4.2
15th Auto Club (AAA) 4.2

 


Best bundling discounts for car insurance

In order to see which company has the best discount for bundling a renters, homeowners or condo insurance policy with auto insurance, we generated rates from major insurance companies (methodology) for six-month bundled policies.

 

AUTO AND HOME INSURANCE BUNDLE RATES
Company Homeowners % Savings $ Savings
Allstate $894 8.54% $76
Farmers $659 22.05% $145
GEICO $583 2.97% $17
Liberty Mutual $750 11.71% $88
Nationwide $636 11.9% $76
Progressive $707 10.55% $75
State Farm $549 17.57% $97
USAA $525 3.84% $20

Homeowners pay the least for car insurance for several reasons. Homeowners are seen as more financially responsible and less likely to file an auto insurance claim than are renters. If you're a homeowner looking to bundle your auto and home insurance policies, consider USAA or State Farm.

 
CONDO AND AUTO INSURANCE BUNDLE RATES
Company Condo owner % Savings $ Savings
Allstate $905 7.2% $65
Farmers $710 13.22% $93
GEICO $583 2.97% $17
Liberty Mutual $750 11.71% $87
Nationwide $664 7.2% $47
Progressive $708 10.35% $73
State Farm $551 17.23% $95
USAA $530 2.94% $15

Other than USAA, State Farm is the cheapest company for auto insurance with a bundled condo insurance policy. On average, State Farm charges $92 a month for a car insurance policy with condo insurance bundled.

See more information about bundling condo and auto policies.

Note: Because of the complicated nature of homeowners, condo and renters insurance pricing, we only gathered rates for auto insurance policies.

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When not to bundle home and auto policies

While the appeal of a discount is ever-present, under some circumstances, you shouldn't bundle your insurance policies.

 

If you'll lose or limit your insurance coverage

Because homeowners and car insurance companies are backed by different risk analyzers, they view risks differently. For example, some home insurance companies will either charge you more — or flat out deny coverage — based on your dog’s breed. While your dog’s breed has absolutely nothing to do with your car insurance, your dog is covered under your homeowners (or renters or condo owners) insurance via your liability policy.

If you transfer your home insurance policy from a company that doesn’t exclude or limit your liability coverage simply because you have a German Shepherd, to one that does, you may be hurting yourself in the long run for a 5% to 10% discount.

This isn’t limited to dogs. If you own a trampoline, a pool or other potentially risky belongings, you should ask potential insurers to learn about potential limitations on your liability coverage (or any other type of coverage) before bundling.

 

If the discount isn't worth it

If the amount you save by bundling isn't greater than what another company would offer without a discount, it’s not worth it. Some insurance agents will quote you a bundling discount if you’re trying to leave their company, but there may be cheaper insurance options elsewhere. Even with a 5% to 10% discount, some insurance companies' rates may be more expensive than other companies' non-discounted premiums.

While Liberty Mutual and Farmers offer large discounts for bundling, the companies' average premiums still exceed those of Nationwide, with or without a bundling discount. Even if you're set to save a couple of bucks per month with an auto-and-home insurance bundle, compare other car insurance companies' offerings before settling on a company.

Despite these potential negatives, there are some reasons to bundle your homeowners and car insurance policies.

money saving tip icon

Money-saving tip

Even if you don't opt into a car-and-home insurance bundle, you can save money based on your status as a homeowner. In fact, homeowners pay $13 less per month for car insurance than do renters.

The data insurance companies use to price policies indicates homeowners are less likely to file car insurance claims, leading to lower rates in many cases. 


Advantages of bundling home and car insurance

There are some additional benefits of keeping it in the family and covering your dwelling and vehicle with one company. 

Cost

Many insurance companies offer cheaper rates to customers who are willing to bundle their home and car insurance policies. 

Convenience

Bundling allows you to simplify your insurance management. While your billing calendars may not align, you'll limit your exposure to multiple agents, customer service reps and other common insurance-related hassles.


Tips for finding cheap homeowners and car insurance bundles

If you're in the market for homeowners and car insurance, keep in mind these tips:

  • Make sure the insurance company you choose has good claims management and customer service in addition to cheap rates; if you’re only dealing with one insurance company, it should be a pleasure to work with. Explore The Zebra's insurance company reviews.
  • Verify your insurance coverage won’t change after you bundle. Not all policies are equal, and you want to make sure the other insurance company doesn’t carry restrictions that can limit your coverage.
  • Do the math: If you’re only bundling to save money, be sure the discount you receive is worth it. Compare the premium you received when you were not bundling versus your new bundled premium.

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Ava Lynch
Ava LynchSenior Analyst

Ava worked in the insurance industry as an agent for four-plus years.

Ava currently provides insights and data analysis as one of The Zebra's property and casualty insurance experts. Her work has been featured in publications such as U.S. News & World Report, GasBuddy, Car and Driver, and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.