If you have both a home and car to insure, one way to potentially save time and money is by purchasing both your home and auto insurance with the same company.
Home and auto insurance bundles can get you a decent multi-policy discount with most insurance companies. We evaluated large home and car insurance companies based on their bundling discounts, auto and home insurance costs and level of complaints.
American Family has a pretty good bundling discount, very good homeowners insurance costs and very low complaint levels for both auto and home. These factors help it overcome its high auto insurance rates.
State Farm has the biggest bundling discount of the companies we analyzed. It also has low levels of complaints regarding home and auto insurance and competitive car and home insurance costs.
Nationwide has a fairly good bundling discount, helpful add-on coverages for both car and homeowners insurance and a very low level of complaints against it for auto and home insurance.
Auto-Owners Insurance has low levels of complaints against it, plus competitive car insurance costs and pretty good coverage options for auto and home policies. Its bundling discount is just okay and it underwhelms with its relatively high cost of home insurance.
Erie has competitive home and auto insurance costs and a decent bundling discount. It also boasts good coverage offerings for both homeowners and auto insurance.
Farmers has a pretty good bundling discount, offers decent coverage options and low complaint levels for home and auto insurance, which help it overcome its higher than average home and car insurance costs.
Pros and Cons of Bundling Home and Auto Insurance
Bundling home and auto insurance policies with one company has advantages, but it isn’t always the best path to take. Here are factors to consider.
Pros of bundling home and auto insurance
Save money. Receive a bundling discount (also called a multi-policy discount) for buying home and auto insurance policies with the same insurance company. The average discount is 14%, which is savings of around $466 a year, according to our analysis.
Save time. Having only one insurance company to deal with for payments and customer service is convenient and can save you time.
Multiple policies, one account. You can manage your bundled home and auto policies under one online account or mobile app with many insurers.
Have a single deductible. Some companies, such as Progressive, apply one deductible to bundled home and auto policies if the damage is done to your house and car in one event. For instance, if a bad storm causes a tree to fall, damaging both your car and home, with a single deductible you’d pay one deductible for the incident instead of two separate deductibles.
Cons of bundling home and auto insurance
Not always the best buy. You may be able to find cheaper prices for auto and home insurance policies by buying them separately from different companies. It pays off to get quotes from a few insurers.
Not necessarily more convenient. If your car insurance company partners with a different home insurance company to give you a bundle discount, you won’t get perks like having one account. Instead, you’ll still have to deal with two companies for payments, services and claims. For example, home insurance through Geico comes from partner companies.
Doesn’t fit your needs. If you want certain coverage types that aren’t available with a company that bundles home and auto insurance, then it’s better to stick with a company that gives you the coverage you want. For example, not all home insurance companies offer extended replacement cost for situations where the cost to rebuild your house turns out to be higher than the dwelling coverage amount listed on the policy.
Who Offers the Biggest Home and Auto Bundling Discount?
State Farm offers the biggest home and insurance bundling discount with an average savings of 23% per year.
The average auto and home insurance bundling discount is 14%, according to Forbes Advisor’s analysis of ten large insurance companies. That comes out to an average savings of $466 a year.