How to bundle home and car insurance for cost savings

Bundling home and auto insurance policies together can earn you a multi-policy discount, easing the financial burden of multiple policies.

How to bundle home and car insurance for cost savings

Sometimes it feels like the older you get, the more insurance policies you need to buy. Your car, your home, maybe even a motorcycle or a boat…all that stuff needs to be insured. Those policies can add up. Fortunately, bundling home and auto insurance policies together can earn you a multi-policy discount, easing the financial burden of multiple policies. But what is “bundling,” anyway, and how does it work? 

Car and home auto bundle: how does it work? 

Bundling is when you insure multiple property types with the same insurance carrier. In this article, we’ll mainly talk about bundling auto and home insurance. That said, there are many possible insurance bundles, encompassing policy types from home and auto to boat, RV, motorcycle or umbrella (personal liability insurance that covers more than just property).  

Bundled policies are typically still separate, with their own policy numbers. Think of the policies as being bundled up in a blanket. They’re wrapped up with each other, but each is still its own entity. 

Why would you bundle? For the multi-policy discount! Many insurance companies offer a big discount for carrying more than one policy with them – often one of their best deals. 

Bundling insurance policies is usually a straightforward process. With some insurance providers, you’ll have to ask for a bundled quote or let them know you’re adding a policy and would like to bundle it. Other providers make it even easier. When you buy multiple policies with them, they automatically add a bundling discount. 

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How to save money when bundling home and auto insurance 

A multi-policy discount can be anywhere from 5 percent to 20 percent. The size of the discount varies depending on the carrier and the policies you bundle. 

There are a few ways to maximize your savings: 

Bundle two or more products 

To bundle, you need at least two types of policy, like auto and home insurance – but you don’t have to stop there. If you need to insure a motorcycle or boat, or want umbrella insurance or life insurance, you can also save on those policies through bundling.  

Bundle your most expensive insurance policies 

Twenty percent off a $1,000 policy is $200 off, whereas 20 percent off a $500 policy is just $100 off. If you have particularly costly insurance needs, like home insurance for a large property or car insurance when you have a poor driving record, prioritize those policies when you bundle. 

Compare multiple bundle quotes 

Whether you’re bundling or not, comparing quotes from several different insurance companies is one of the best ways to save money when shopping for insurance. If you’re not sure how to get multiple quotes, work with an independent insurance agent. They have relationships with many carriers, so they can bring you quotes from all over! Learn more about how to compare quotes

Can I still get a bundle discount if I don’t own a home? 

Yes! Although bundling car and home insurance is the most popular choice for a multi-policy discount, it’s not your only option. Some insurance companies will let you bundle car insurance and renters insurance. Or you could try bundling your car insurance with a non-housing-related insurance like boat, motorcycle, or RV insurance. Ask your agent what’s possible! 

Just beware that you’re limited to bundling policies from the same carrier. So, for example, you won’t be able to bundle your car insurance and your health insurance, since health insurance companies only provide health insurance. 

Who has the best home and auto insurance bundle? 

It depends! The best home and auto insurance bundle for you might be the worst for someone else. That said, here are some bundle-offering carriers to investigate: 

  • Allstate – up to a 25 percent discount 
  • Farmers – an average discount of 20 percent 
  • Nationwide – up to a 20 percent discount 
  • State Farm – up to $1,073 per year 
  • Travelers – up to 12 percent 

Should I bundle my home and car insurance? 

Since the discount for bundling insurance can be so significant, it’s worth getting some quotes to find out. Depending on the insurance policies you need and the companies that offer them, you could save a lot by bundling. 

If you need to compare quotes for bundled insurance, contact Surround Insurance. Our independent agents can collect quotes for you and help you compare them for the best deal. 

This is general information based on questions our customers ask us. It may not be right for your specific situation. You should get some advice from a licensed insurance agent (like us!) before you make a decision on your own insurance.