Short answer: bundling is often cheaper, but not always. Many insurers give a multi-policy discount when you buy home (or renters or condo) and auto insurance together, and you get one company and one account. A discount on a high price can still cost more than two lower-priced policies from different companies, so compare the bundled total with the best separate prices before you decide.
How bundling works
Buying home (or renters or condo) and auto insurance from the same company often earns a multi-policy discount. Depending on the insurer, the discount applies to the home policy, the auto policy or both, and its size varies by company and by state. Some insurers also offer a single combined deductible when one event, such as a storm or a fire, damages both your home and your car.
When bundling saves the most
- Your insurer prices both policies well for you. The discount helps most when neither policy is overpriced to begin with.
- You have several cars or drivers. A percentage discount on a larger auto premium is worth more dollars.
- You want one renewal, one bill and one claims contact. Convenience is a real benefit; the NAIC notes that easier bills and policies are one reason people stay with a bundle.
- The insurer offers bundle extras, like a single combined deductible.
When separate policies can cost less
- One company is cheap for home but expensive for auto (or the reverse). Insurers price each line differently, so the best home insurer for you may not be the best auto insurer.
- Your home is hard to insure (older roof, wildfire or coastal area). The company with the best auto price may not want the home, or may charge much more for it.
- Your driving record or a young driver raises the auto price enough to wipe out the discount.
The NAIC also points out that bundling can steer people toward choosing on price alone. Compare coverage, not just the total: same liability limits, deductibles and dwelling coverage on both sides.
How to compare a bundle the right way
- Get a bundled quote for home and auto from at least two or three companies.
- Get separate quotes for each policy from companies that price that line well.
- Match the coverage: liability limits, deductibles, dwelling and personal property amounts, and any add-ons.
- Ask each insurer for the price with and without the multi-policy discount, so you can see what the discount is really worth.
- Compare the yearly totals, then weigh the convenience of one company against any savings from splitting.
You can compare home and auto quotes together with one form.
Bundling renters or condo insurance
Many insurers apply their multi-policy discount to renters and condo policies too, so it’s worth asking even if you don’t own a house. See renters insurance explained.
Frequently asked questions
Is it better to bundle home and auto insurance?
Often, but not always. Bundling often earns a multi-policy discount, but two separate policies from companies that price each one well can cost less. Compare the bundled total with the best separate prices for the same coverage.
How much can you save by bundling?
It depends on the insurer and the state, and on whether the discount applies to one policy or both. Ask each company for the price with and without the multi-policy discount to see what it is worth for you.
Can I bundle renters or condo insurance with auto?
Often, yes. Many insurers that offer a multi-policy discount apply it to renters and condo policies too; ask each company you get quotes from.
What are the downsides of bundling?
You may pay more for one of the policies than another company would charge, and switching later means moving both policies. Bundles can also make it easy to compare on price alone instead of coverage.
Can I bundle if I already have a policy with another company?
Yes. You can move one policy to join the other, or move both to a new company. Line up the start dates so you never have a gap in coverage.
Sources
- NAIC (National Association of Insurance Commissioners): Bundling
- Insurance Information Institute (Triple-I): 12 ways to lower your homeowners insurance costs
- Insurance Information Institute (Triple-I): Renewing your homeowners or car insurance policy?
This guide is general information, not insurance or legal advice. Coverage and requirements vary by insurer and state.
