Bundling Auto and Home Insurance: Is It Worth It?

If you own a home and a car, chances are you've been told that bundling your auto and home insurance with the same company can save you money. And in most cases, that's true — bundling discounts typically range from 15% to 25%, which can translate to hundreds of dollars in annual savings.

But is bundling always the smartest move? Not necessarily. In some situations, keeping your policies with separate carriers can actually save you more money. In this guide, we'll explain exactly how bundling works, break down the real savings, tell you when it doesn't make sense, and explore other bundling options beyond auto and home.

How Does Insurance Bundling Work?

Insurance bundling — also called a "multi-policy discount" — simply means purchasing two or more types of insurance from the same company. The most common bundle is auto + homeowners insurance, but you can also bundle auto with renters insurance, condo insurance, life insurance, umbrella insurance, or even motorcycle and boat insurance.

When you bundle, the insurance company applies a multi-policy discount to one or both of your policies. The discount percentage varies by insurer and location, but it's typically applied as follows:

Auto insurance discount: 5-15% off your auto premium
Home insurance discount: 5-15% off your home premium
Combined savings: 15-25% total across both policies

Some insurers offer the discount as a flat percentage off the total, while others discount each policy separately. Either way, the savings add up quickly.

Real Dollar Savings Example

Let's say your annual premiums are:

Auto insurance: $1,500/year
Home insurance: $1,200/year
Total without bundling: $2,700/year

With a 20% bundling discount:

Bundled total: ~$2,160/year
Annual savings: $540

Over 10 years, that's $5,400 in savings — and that's before accounting for any additional discounts you might qualify for as a multi-policy customer (like loyalty discounts that grow over time).

Benefits of Bundling Beyond Savings

The discount is the headline benefit, but bundling offers several other advantages:

Convenience

One company, one bill, one agent, one app. Managing your insurance is simpler when everything is in one place. You have a single point of contact for questions, changes, and claims.

Single Deductible for Multi-Coverage Claims

Some bundled policies offer a "single deductible" benefit. For example, if a tree falls on your car in your driveway (damaging both your car and your home), you might only pay one deductible instead of two. This can save you hundreds of dollars on a single event.

Better Customer Loyalty Perks

Multi-policy customers are valuable to insurers. You're more likely to receive perks like accident forgiveness, diminishing deductibles (where your deductible decreases for each claim-free year), and more flexible claims handling.

Easier Policy Management

Renewal dates, payment schedules, and policy changes are simpler to track when all your insurance is with one company. Some insurers even align your renewal dates so everything renews at the same time.

When Bundling Doesn't Make Sense

Despite the advantages, there are situations where bundling is not the best choice:

When Separate Policies Are Cheaper Overall

The bundled price from Company A might still be more expensive than the combined cost of the cheapest auto policy from Company B and the cheapest home policy from Company C. Always compare:

The bundled price from 2-3 companies
The total cost of separate best-price policies

Don't assume bundling is cheaper without doing the math. The discount might not be enough to offset a company's higher base rates.

When One Policy Is in a High-Risk Category

If you have a DUI or multiple accidents, your auto insurance is in high-risk territory. A company that specializes in high-risk auto insurance might offer a much better rate than a traditional carrier — even after accounting for the bundling discount you'd lose. Similarly, if your home has had multiple claims, a specialist home insurer might beat the bundled price.

When the Insurer Isn't Strong in Both Areas

Some companies excel at auto insurance but offer mediocre home insurance (or vice versa). Bundling a great auto policy with a subpar home policy doesn't serve you well — especially when you need to file a home claim and discover the coverage or service is lacking.

When You Can Get Better Coverage Separately

Sometimes the best auto insurer for your profile doesn't offer the home coverage you need (or the best home insurer doesn't offer competitive auto rates). In these cases, separate policies give you the best of both worlds in terms of coverage quality and pricing.

Other Bundling Options

Auto + home is the most common bundle, but it's far from the only option:

Auto + Renters Insurance

If you rent your home, you can bundle auto and renters insurance for similar discounts. Renters insurance is already inexpensive ($15-$30/month), and bundling can make it even cheaper — often just $10-$15/month when bundled. This is an excellent option for new or young drivers living on their own.

Auto + Life Insurance

Some carriers offer discounts when you bundle auto with a life insurance policy. The savings are typically smaller (5-10%) than auto + home bundles, but it's still worth exploring, especially if you need life insurance anyway.

Auto + Umbrella Insurance

An umbrella policy provides additional liability coverage beyond the limits of your auto and home policies. Bundling an umbrella with your auto and home insurance is common and can earn additional discounts.

Multi-Vehicle Bundle

Even without a home or renters policy, insuring multiple vehicles on the same policy qualifies for a multi-vehicle discount of 10-25%. If your household has two or more cars, this is an easy way to save.

Triple or Quad Bundles

The more policies you bundle, the greater the total discount. A "triple bundle" of auto + home + umbrella, or auto + home + life, can unlock the maximum available discount from your insurer.

How to Find the Best Bundle Deal

Get bundled quotes from 3-5 insurers. Don't just ask your current company — shop around to see which insurer offers the best combined price.
Also get separate quotes. Compare the bundled price against the total cost of separate best-price policies for auto and home.
Check coverage quality. Don't sacrifice coverage for a discount. Make sure both policies meet your needs.
Ask about additional discounts. Bundling often unlocks access to other discounts you might not get as a single-policy customer.
Review annually. Bundle pricing changes over time. What was the best deal last year might not be this year. Use Apex Coverage Group's free comparison tool to check your options.

What Happens If You Unbundle?

If you decide to move one policy to a different carrier (for example, switching your auto insurance but keeping your home insurance), be aware that:

You'll lose the multi-policy discount on both policies
Your remaining policy's premium will increase by the amount of the lost discount
You should factor this increase into your comparison when deciding whether to switch auto insurance

Sometimes unbundling still makes sense if the savings from the new carrier outweigh the lost bundle discount. Just make sure you account for the full financial picture.

The Bottom Line

Bundling auto and home insurance is worth it for the majority of drivers and homeowners. With typical savings of 15-25%, plus the convenience of managing everything with one company, it's usually a smart financial move. However, always compare the bundled price against separate policies to make sure you're truly getting the best deal.

The insurance market is competitive, and the best option for you depends on your unique profile, driving history, home, and location. Take the time to compare, and don't be afraid to switch if a better deal is available.

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