How to Bundle Auto and Homeowners Insurance to Save Money

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 1, 2026 How we fact-check

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.

Bundling auto and home insurance saved about 15% on average in one 2026 rate study, and it 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.

Table Of Contents

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
Sources

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?

Savings depend on the carrier and state. In a 2026 Insurance.com rate study across all 50 states and D.C., bundling auto and home saved an average of 15%, or about $869 a year. Insurers’ own figures vary. Progressive says bundlers save an average of 5% on auto in most states, Farmers says up to 10% off both policies, and Nationwide says up to 20%.

For most households, that works out to hundreds of dollars per year.

However, the bundle discount by itself is usually moderate. Big “up to” numbers often count other discounts too. American Family says bundlers may save up to 40%, but that figure includes its autopay, paperless and DriveMyWay discounts.

Advantages of Bundling Home and Auto Insurance Policies

Bundling offers more than just lower prices. Other benefits include:

Minimized coverage gaps. With both policies at one company, it’s easier to review them together and spot coverage you’re missing.
Reduced policy overlap. Reviewing both policies with one company or agent helps 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. Auto-Owners, for example, cuts your auto deductible by the amount of your home deductible when one loss damages both.
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, say your auto insurer charges $1,000 for your car and quotes $1,800 for car and home bundled. If another company offers the same home coverage for $700, buying separately costs $1,700, which is $100 less than the bundle. 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

Before you cancel, ask your current insurer how it handles cancellation and whether you’ll get a refund for unused premium. Set the new policy to start before the old one ends so there’s no gap 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	Advertised Bundle Discount	Key Bundle Benefits	Best For
USAA	Up to 10%	Strong homeowner & auto coverage; excellent claims service; exclusive military benefits.	Active military, veterans & eligible families
State Farm	Up to 17% on auto	Single agent for both policies; huge national network; strong financial stability.	Drivers & homeowners wanting personal agents
Allstate	20% average (includes a new-customer discount)	Multiple discount layers; great for multi-vehicle households; solid digital tools.	Families with multiple cars
GEICO	Varies; no figure published	Strong auto + competitive home partner network; low-priced auto coverage.	Drivers prioritizing cheap auto insurance
Progressive	5% average on auto	Excellent online quoting; strong home partnerships; great for tech-forward customers.	Online shoppers wanting flexible coverage
Nationwide	Up to 20%	Robust home insurance options; highly customizable auto policies.	Homeowners wanting strong property protection
Farmers	Up to 10% off both policies	Great for multi-policy households; more savings for bundling multiple cars.	Homes with multiple vehicles or drivers
Liberty Mutual	$950 a year average for new customers who switch	Strong replacement cost home coverage; multiple discount opportunities.	Homeowners wanting broad coverage add-ons
Travelers	Varies; no figure published	Highly customizable home policies; strong bundling discounts.	Homeowners needing tailored property coverage
Erie Insurance	Varies; ask for a quote	Excellent customer service; generous bundle savings; strong regional pricing.	Drivers in Erie’s service area wanting top value

Discounts are what each insurer advertised when we checked on October 1, 2026, except USAA’s, which comes from CNBC Select. “Up to” figures are maximums, and some averages are based on surveys of people who switched. Your discount depends on your state and the policies you combine.

FAQs

What does it mean to bundle home and auto insurance?

Bundling means purchasing both your home insurance and auto insurance from the same insurer. When you combine policies under one company, you typically receive a multi-policy discount.

How much money can I save by bundling insurance?

A 2026 Insurance.com rate study found bundling home and auto saved about 15% on average. Insurers’ own figures range from Progressive’s 5% average on auto to Nationwide’s “up to 20%,” and the result depends on your state and coverage levels.

Is bundling always the cheapest option?

Not always. While bundling usually saves money, occasionally the cheapest auto insurer and the cheapest home insurer are two different companies. Always compare bundled prices against standalone policies before switching.

Which companies offer the best home and auto bundles?

Top bundling companies include USAA, State Farm, Allstate, GEICO, Progressive, Nationwide, Farmers, Liberty Mutual, Travelers, and Erie. Discounts and coverage quality vary by state.

What are the benefits of bundling besides saving money?

Bundling makes it easier to spot coverage gaps and overlap, some insurers offer single-deductible options for certain claims, and you manage all policies with one company and simpler billing.

Can I bundle more than just home and auto insurance?

Yes. Many insurers allow you to bundle renters, motorcycle, boat, RV, life, condo, and even pet insurance along with home and auto to unlock additional discounts.

Will I pay only one deductible if both my home and car are damaged?

Some insurers offer a ‘single deductible’ benefit for bundled customers. If the same event damages your home and vehicle—for example, a storm—you may only pay one deductible instead of two.

Can I switch insurers to bundle and save money?

Yes. You can switch insurers at any time. Just check for cancellation fees, avoid coverage gaps, and ensure your new bundled policy is active before ending the old one.

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, one 2026 rate study put the average saving at about 15%, 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. I would always get one quote for the bundle and separate quotes for home and auto, and then compare what you would pay in total.

Sources

Checked October 1, 2026

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