Bundling your home and auto insurance with the same company typically saves you 10% to 25% on your total premiums. The exact discount depends on your insurance company, location, claims history, and the specific policies involved.
Multi-policy discounts are one of the easiest ways to lower your insurance costs. But the lowest bundled price is not always the best value, so compare coverage carefully before committing.
How the Multi-Policy Discount Works
Insurance companies offer multi-policy discounts because they want to earn more of your business and retain you as a customer longer. When you bundle home and auto, you are less likely to switch carriers, so they reward your loyalty with a lower rate.
- The discount is applied to both policies, typically as a percentage off each premium
- Discounts range from 10% to 25% depending on the carrier and state regulations
- Some companies offer tiered discounts: the more policies you have, the larger the discount
- You can also bundle umbrella, renters, motorcycle, or RV policies for additional savings
- The discount is typically automatic when you have both policies with the same carrier
Before You Bundle: What to Compare
Do not choose a bundle based on price alone. A low bundled rate is only a good deal if the coverage meets your needs. Here is what to check before bundling.
- Compare the coverage limits and deductibles side by side, not just the premiums
- Check whether the auto policy includes the same coverages you have now (rental, roadside, uninsured motorist)
- Look at the home policy endorsements like ordinance and law, inflation guard, and scheduled personal property
- Get quotes bundled and unbundled from multiple carriers to see the true savings
- Ask about claims handling for bundled policies: does one adjuster handle both claims?
When Bundling Does Not Make Sense
Bundling is not always the right move. In some cases, you can get better coverage and a lower total price by keeping your policies separate.
- If one carrier is strong on home but weak on auto, you may get better auto coverage elsewhere
- If you have a poor claims history on one policy, it can affect both when bundled
- Some carriers offer better individual policy discounts that rival or beat bundling savings
- If one policy has a specialized need (high-value home, classic car, teen driver), separate specialists may serve you better
- Always do the math: total bundled price vs. total separate prices for the same coverage
