Car and home insurance bundles
Many people own or lease two primary assets: their personal vehicle and their primary residence. Insuring each of these items together could be a great idea, as bundling policies with one insurance company may provide an added benefit of saving money.
Most insurers offer a multi-policy discount for bundling. Bundling can also make it easier for the policyholder to manage their policies by working with one insurance company to meet a variety of insurance coverage needs. Read on to see if bundling could be the right option for you.
What is insurance bundling?
Bundling refers to the common practice of buying multiple insurance policies from a single insurance company. Bundling car and home insurance is the most common combination, but carriers may offer a variety of policy options to bundle.
Best insurance companies for bundling auto and home
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. Here are the results of this study on the top insurers for bundling car and homeowners insurance.
Homeowners ranked USAA as the best overall auto insurance company in The Zebra's Customer Satisfaction Survey. The company offers a discount of up to 10% for bundling. While USAA is widely available and has a great reputation, it's only available to active duty or retired military members and their families.
State Farm is available in every state and those who prefer a personalized experience can easily access its network of agents. The company offers savings of 17% by bundling car insurance with home, condo, renters or life insurance. The company also has many coverage add-ons available for homeowners insurance, though the average cost can be on the pricey side compared to other insurers.
GEICO also has wide geographic availability and plentiful discount opportunities, including a multi-policy discount. The company doesn't advertise how much a customer could save by bundling. But in our rate analysis of GEICO, we found that while it typically offers lower rates than many of its competitors, it's pricier than USAA and State Farm.
See the rest of the results below:
|Rank||Company||Customer Satisfaction Rating (out of 5)|
The Zebra Customer Satisfaction Survey methodology
Findings are based on an online quantitative survey of 4,134 current U.S. auto and home insurance customers, with Census-balanced sampling by age, gender and region. Categories with n=<20 responses are considered insufficient sample size and are not reported. This survey was developed by The Zebra and executed by independent research firm Maru/Blue in 2021.
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.
Many insurance companies offer cheaper rates to customers who are willing to bundle their home and car insurance policies.
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.
Do you actually save money bundling home and auto insurance?
As long as you ensure that your home and auto insurance quote lowers your rate more than it would than having multiple policies from different companies, you can save. While most car insurance discounts are quite small, bundling usually earns you the biggest discount. However, it's also integral that before policy renewals come up, you get new quotes from time to time to make sure you're actually continuing to save money by bundling.
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 reviews of the best homeowners insurers and best car insurers.
- 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.
Find a bundle online today: compare quotes now.
Best bundling discounts for car insurance
Homeowners can save about 10% by bundling car and home insurance, while renters save 5%. In order to see which company has the best discount for bundling a homeowners or condo insurance policy with auto insurance, we generated rates from major insurance companies (methodology) for six-month bundled policies.
|Average Home Insurance Rate||Average Auto Insurance Rate||Average Home and Car Insurance Bundle Rate|
- See car insurance quotes with a home insurance policy
- See car insurance quotes with a condo owners policy
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.
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.
Note: Because of the complicated nature of homeowners, condo and renters insurance pricing, we only gathered rates for auto insurance policies.
Auto insurance data methodology
The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:
- $50,000 per person/$100,000 per incident for bodily injury liability
- $50,000 per incident for property damage liability
- $500 deductibles for collision and comprehensive coverage
To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.
In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.
When not to bundle home and auto policies
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 when you shouldn't bundle your homeowners and car 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 homeowners 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 other coverage options) before bundling insurance.
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, a typical homeowner's car insurance rate is $8 less per month compared to 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.
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. In short, it's important to verify that your discount actually makes it cheaper than having separate policies.
Get home and auto insurance quotes quickly and easily.
How does bundled insurance work?
Bundling simply refers to the practice of buying multiple policies from a single insurance company. A common combination is home and auto insurance. This can make it easier for policyholders to manage their insurance since they'd have to work with one company rather than several.
What are the best auto and home insurance companies?
In The Zebra's 2022 customer survey of popular insurance companies, USAA, State Farm and GEICO were the top rated for car and homeowners insurance.
Is it cheaper to buy home and car insurance together?
Insurance companies often provide a multi policy discount if you choose to bundle. Because this discount varies from insurer to insurer, it's important to verify that the bundling savings you're receiving actually makes it cheaper than buying two policies from different providers.
How much can you save by bundling insurance?
Depending on the insurance provider, the discount can range from 5% to 20%. According to our data, homeowners save an average of 10% and renters save 5%.
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.