How to Bundle Auto and Homeowners Insurance to Save Money
Last Updated on December 7, 2025
If you look at any list of the best ways to save money on car insurance, you’ll see “bundling” near the top. Bundling is still one of the easiest, most reliable ways to reduce your insurance costs.
But what exactly is bundling? How does it work? And how can you bundle auto and homeowners insurance together to save the most money? Below, we explain everything you need to know about bundling.
Key Takeaways
- Bundling auto and home insurance typically saves 10–15% and simplifies billing and coverage.
- Some companies also allow one deductible when both home and auto are damaged in the same event.
- Bundling isn’t always the cheapest option — comparing standalone vs. bundled quotes is essential.
- Most major insurers offer bundles across multiple policy types, not just home and auto.
- What Is Insurance Policy Bundling?
- How Much Can You Save by Bundling Home and Auto Insurance?
- Advantages of Bundling Home and Auto Insurance Policies
- Should You Always Bundle Your Home and Auto Insurance?
- How to Bundle Insurance Policies
- What Are the Best Companies to Bundle Home and Auto Insurance?
- FAQs
- Final Word on Bundling Your Home and Auto Insurance Policies
What Is Insurance Policy Bundling?
Bundling means purchasing multiple insurance products from the same insurance company. Instead of having auto insurance with State Farm and renters insurance through USAA, for example, you place both policies with one company and receive a discount.
Insurers offer bundling discounts because they want more of your business — and because covering multiple lines for the same customer is more efficient. The U.S. insurance market is highly competitive, and bundling is often the easiest way for major carriers to offer lower pricing without reducing core rates.
Bundling is available for nearly everyone: homeowners, renters, condo owners, people with multiple vehicles, and families with several drivers. Most insurers offer a wide menu of products that can be combined under one account.
How Much Can You Save by Bundling Home and Auto Insurance?
Most homeowners save 6% to 25% by bundling auto and home insurance, depending on the carrier and state. Nationally, the average savings fall between 10% and 15%, though some companies offer even deeper discounts for long-term customers or multi-vehicle households.
Since many families spend $2,000 to $6,000 per year on home and auto insurance combined, bundling often saves hundreds of dollars per year.
However, bundling doesn’t lead to enormous 40%–50% discounts. Bundling is valuable — but the savings are typically moderate and vary by insurer.
Advantages of Bundling Home and Auto Insurance Policies
Bundling offers more than just lower prices. Other benefits include:
- Minimized coverage gaps. Bundled policies are designed to work together. Home and auto coverage is structured to avoid blind spots and provide seamless protection.
- Reduced policy overlap. When both policies are with one company, insurers coordinate coverages more effectively, helping you avoid paying twice for similar protection.
- Single deductible options. Some insurers offer a single-deductible benefit for bundled customers. If the same event damages both your car and home — for example, a storm or falling tree — you may only pay one deductible instead of two.
- Better convenience. Bundling allows you to manage your policies under one account with a single bill, one customer service team, and one renewal date.
Should You Always Bundle Your Home and Auto Insurance?
Bundling is popular, but it’s not always the cheapest option.
Some insurers offer excellent home insurance pricing but higher auto rates — or vice versa. If the standalone price of one policy is significantly lower with another company, bundling may cost more overall even after discounts.
For example, if an insurer offers you homeowners insurance for $700 but your current auto insurer quotes $1,000 for homeowners insurance (or $1,800 bundled), the cheaper option may still be to keep the standalone $700 home policy. Always compare bundle pricing against separate-policy pricing.
How to Bundle Insurance Policies
Bundling home and auto insurance is straightforward. Here’s how to do it:
- Request quotes from your insurer. Ask your current auto or home insurer for a bundled quote.
- Get competing bundle quotes from other companies. Many carriers offer improved pricing when you bring both policies over.
- Review cancellation terms. If switching, know whether your current insurer charges cancellation fees. Fees may offset savings.
- Avoid coverage gaps. Ensure the new policy goes active before the old one ends.
Many insurers offer far more than home and auto insurance. Additional policies you can bundle include:
- Renters insurance
- Life insurance
- Motorcycle insurance
- Boat insurance
- Pet insurance
- Snowmobile insurance
- RV insurance
- Vacation or secondary homes
In most cases, insurers recommend giving at least 30 days’ notice before canceling a policy. This helps avoid fees and prevents unintended gaps in your coverage.
What Are the Best Companies to Bundle Home and Auto Insurance?
Some insurers offer consistently strong bundle discounts and streamlined multi-policy options. Here are the top companies to bundle home and auto insurance:
| Insurance Company | Average Bundle Discount | Key Bundle Benefits | Best For |
|---|---|---|---|
| USAA | 10%–15% | Strong homeowner & auto coverage; excellent claims service; exclusive military benefits. | Active military, veterans & eligible families |
| State Farm | 10%–20% | Single agent for both policies; huge national network; strong financial stability. | Drivers & homeowners wanting personal agents |
| Allstate | 10%–18% | Multiple discount layers; great for multi-vehicle households; solid digital tools. | Families with multiple cars |
| GEICO | 5%–12% | Strong auto + competitive home partner network; low-priced auto coverage. | Drivers prioritizing cheap auto insurance |
| Progressive | 10%–15% | Excellent online quoting; strong home partnerships; great for tech-forward customers. | Online shoppers wanting flexible coverage |
| Nationwide | 10%–20% | Robust home insurance options; highly customizable auto policies. | Homeowners wanting strong property protection |
| Farmers | 10%–18% | Great for multi-policy households; optional single deductible for certain claims. | Homes with multiple vehicles or drivers |
| Liberty Mutual | 10%–15% | Strong replacement cost home coverage; multiple discount opportunities. | Homeowners wanting broad coverage add-ons |
| Travelers | 10%–20% | Highly customizable home policies; strong bundling discounts. | Homeowners needing tailored property coverage |
| Erie Insurance | 15%–25% | Excellent customer service; generous bundle savings; strong regional pricing. | Drivers in Erie’s service area wanting top value |
FAQs
Final Word on Bundling Your Home and Auto Insurance Policies
Bundling home and auto insurance is one of the most reliable ways to lower your overall insurance bill. While exact savings vary by insurer, many customers save between 10% and 15% when bundling, and larger households with multiple cars or policies may save even more.
If you want the best pricing, compare bundled quotes from several insurers. Then choose the insurer that offers the ideal mix of coverage, convenience, and savings.
