Is bundling home and auto insurance the best option? Explore ways to pair your policies and save.
Aside from health insurance, most people have two insurable interests: their vehicle and their residence. No matter whether these items are owned or leased, insuring them is a great idea — potentially through the same insurance company. While there are many good reasons to bundle home and auto insurance, there are also some scenarios in which it might not be the best idea.
Let's explore the dos and don'ts of bundling homeowners and car insurance policies.
In order to see which company has the best discount for bundling a renters, homeowners, or condo insurance policy with auto insurance, we generated quotes from major insurance companies (methodology) for six-month bundled policies.
|Company||Homeowners||% Savings||$ Savings|
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. Learn more about car insurance for homeowners.
|Company||Condo owner||% Savings||$ Savings|
Other than USAA, State Farm is the cheapest company for auto insurance with a bundled condo insurance policy. On average, State Farm charges $92 a month for a car insurance policy with condo insurance bundled. See more information about bundling condo and auto policies.
|Company||Premium with Renters Insurance||% Savings||$ Savings|
If you're looking for a cheap car insurance quote as a renter, consider USAA. If you don't qualify for USAA, start your search with GEICO, which offers an average six-month premium of $588 or $98 a month. Find out more about how to save on car insurance as a renter.
With the exception of USAA, State Farm offers the cheapest average auto insurance bundle price. State Farm also offers a good amount of savings when bundling with your auto policy; it had the second-highest percentage of savings from the companies we surveyed. Companies like Farmers, while not the cheapest overall premium, offer higher percentage savings when bundling home and auto insurance policies.
Note: Because of the complicated nature of homeowners, condo, and renters insurance, we were only able to gather quotes for auto insurance.
While the appeal of a discount is ever-present, under some circumstances, you shouldn't bundle your insurance policies.
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 switch 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 have a trampoline, pool or other potentially risky belonging, you should ask potential insurers to learn about potential limitations on your liability coverage (or any other type of coverage) before bundling.
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, certain insurers' rates are still more expensive than other companies' standard premiums.
While Liberty Mutual and Farmers offer large discounts for bundling, their average premiums still exceed that of Nationwide — with or without a renter’s discount — for our user profile. So, even if you're set to save a couple of bucks by bundling, you might want to compare other car insurance companies' offerings.
Despite these negatives, there are some reasons to bundle your homeowner’s and car insurance.
Outside of the financial incentive of bundling homeowners and car insurance policies, there are some additional benefits of keeping it in the family. Let’s explore.
What's worse than dealing with an insurance company? Dealing with two insurance companies. By bundling, you reduce the number of insurance companies with which you need to deal. While your billing calendars may not align, you'll limit your exposure to multiple agents, customer service reps and other common insurance-related hassles.
If you're in the market for homeowners and car insurance together, keep these tips in mind: