Best Auto and Home Insurance Bundles
Bundling your home and auto insurance is a smart strategy for potentially lowering your insurance costs. Some insurers advertise discounts of up to 30% for customers who combine their home and auto policies.
However, before rushing into a bundled deal, it’s essential to compare offers and consider several factors beyond the initial discount. Look for an insurer that offers:
- Strong customer service
- Comprehensive coverage options
- Additional perks and discounts
To identify the best auto and home insurance bundles, NerdWallet analyzed insurers that offer a bundling discount and have earned a minimum 4.5-star rating for both home and auto insurance. The analysis was then narrowed to insurers available in at least 10 states. Sample rates shown do not include any bundling discounts.
Here’s a look at some top choices for 2025:
American Family
- Auto insurance: 5.0 NerdWallet rating
- Home insurance: 4.5 NerdWallet rating
- Bundling discount: Up to 23%
Why it’s the best: American Family offers competitive bundled policies, potentially saving policyholders up to 23%. The company also boasts strong customer service and receives fewer consumer complaints than expected for its size.
- Average auto insurance cost: $2,132 per year
- Average home insurance cost: $2,745 per year
- Pros: Wide range of coverage and discounts, fewer consumer complaints than expected, and diminishing deductibles available.
- Cons: Not available in all states.
- Standout feature: Diminishing Deductibles reduce your deductibles by $100 each claim-free year.
Amica
- Auto insurance: 4.5 NerdWallet rating
- Home insurance: 5.0 NerdWallet rating
- Bundling discount: Up to 30%
Why it’s the best: Amica stands out for excellent customer satisfaction and low consumer complaint rates, making it a great bundling option. Policyholders can save up to 30% by bundling.
- Average auto insurance cost: $3,215 per year
- Average home insurance cost: Unavailable
- Pros: Online claims filing and tracking, few consumer complaints, and upgraded coverage packages.
- Cons: Home insurance not available in Alaska or Hawaii; auto insurance not available in Hawaii.
- Standout feature: Potential for up to 20% of annual premium returned in dividends.
Auto-Owners
- Auto insurance: 5.0 NerdWallet rating
- Home insurance: 5.0 NerdWallet rating
- Bundling discount: Varies
Why it’s the best: Auto-Owners offers excellent options, especially if you’re open to working with an independent agent. They have fewer consumer complaints than expected.
- Average auto insurance cost: $1,851 per year
- Average home insurance cost: $2,380 per year
- Pros: Numerous additional coverage options and discounts, and few consumer complaints.
- Cons: Not available in all states, and no online quotes are available.
- Standout feature: Auto deductible reduced by the amount of your homeowners deductible if both home and car are damaged in a single event.
State Farm
- Auto insurance: 5.0 NerdWallet rating
- Home insurance: 4.5 NerdWallet rating
- Bundling discount: Up to $1,273 per year
Why it’s the best: State Farm provides comprehensive coverage options. They also offer coverage for a wide range of needs, including boats, RVs, and small businesses.
- Average auto insurance cost: $2,290 per year
- Average home insurance cost: $2,185 per year
- Pros: Generous dwelling coverage, a free smart-home device to prevent house fires, and up to 30% discounts through the Drive Safe & Save program.
- Cons: Relatively few home insurance discounts and doesn’t provide gap insurance.
- Standout feature: The Drive Safe & Save program for safe drivers allowing them to earn substantial discounts.
Travelers
- Auto insurance: 5.0 NerdWallet rating
- Home insurance: 4.5 NerdWallet rating
- Bundling discount: Varies
Why it’s the best: Travelers suits eco-conscious homeowners. They have many coverage options and discount possibilities.
- Average auto insurance cost: $1,768 per year
- Average home insurance cost: $2,055 per year
- Pros: Varied coverage choices for both home and auto, discounts for eco-friendly homes, and accident forgiveness.
- Cons: Rideshare coverage might not be available everywhere.
- Standout feature: Travelers offers the Responsible Driver Plan, forgiving one accident and minor violation within a certain period. This is especially advantageous with the Premier Responsible Driver Plan, including diminishing deductibles.
USAA
- Auto insurance: 5.0 NerdWallet rating
- Home insurance: 5.0 NerdWallet rating
- Bundling discount: Up to 10%
Why it’s the best: USAA policyholders can save up to 10% by bundling. Their services, however, are only for military members, veterans and their immediate families.
- Average auto insurance cost: $1,456 per year
- Average home insurance cost: $1,790 per year
- Pros: Fewer consumer complaints, home insurance perks, and a one-stop shop for both insurance and banking.
- Cons: Only available to military members, veterans and their families.
- Standout Feature: Homeowners can profit via perks like replacement cost coverage for their belongings.
How Bundling Works
Bundling involves purchasing multiple insurance policies from the same company, often at a discounted rate. Insurance companies favor bundling because it increases their total business with you. In return, you benefit from lower rates and streamlined policy management.
Bundling isn’t limited to home and auto insurance. Depending on the company, you might be able to bundle:
- Umbrella insurance
- Boat insurance
- RV insurance
- Life insurance
Benefits of Bundling
Bundling car and home insurance can be advantageous for several reasons:
- Lower premiums: Mult-policy discounts can lead to savings of up to 30%.
- Simplified management: Having all your policies with one company simplifies administration.
- Enhanced long-term coverage: Bundling might make it less likely that the insurer drops your because of claims or tickets.
Potential Downsides of Bundling
While convenient, bundling isn’t always the best financial choice:
- Reduced shopping around: Bundling can discourage rate comparisons. You’re less likely to explore multiple insurance companies if switching means changing more than one policy.
- Bundled rates might not be the lowest: You could potentially find more affordable individual rates by going with different companies for your car and home insurance.
- Limited carrier options: Individuals with specific high-risk profiles or coverage needs may have a limited number of insurers to select from.
Should You Bundle?
Bundling home and car insurance can frequently save you money, but this isn’t always the case. To decide, compare quotes for separate home and auto policies to bundled policies.
Insurance pricing depends heavily on location, credit history, and the value of items being insured. For example, if you drive a sports car or recently had an accident, your auto policy might be more expensive than a modest home policy. In these cases, bundling might be the best option, especially if separate policies are more expensive than a bundled rate.
Tips for Bundling
If bundling auto and homeowners insurance is the right choice for you, follow these steps to maximize your savings:
- Compare bundles from various insurers: An independent agent can help you get quotes from multiple companies.
- Check for third-party involvement: Find out if the insurer outsources either policy. This might mean loss of convenience.
- Shop around regularly: Insurance costs can change, so it’s smart to get new quotes often, particularly during major life events.
