Bundling Home and Auto Insurance: Maximizing Savings and Convenience
Bundling your home and auto insurance with the same company can lead to significant savings, potentially reducing your premiums by up to 25%, depending on the insurer. Beyond the financial benefits, bundling simplifies insurance management by consolidating your policies and payments with a single company. Many insurers also streamline the process by combining your monthly premiums into one convenient payment.
Maximizing Your Savings
It’s important to note that bundling discounts, often called multi-policy discounts, aren’t standardized. The savings you can achieve vary significantly among different insurance providers. Some insurers offer impressive discounts on bundled policies, while others excel in the range of insurance products that qualify for bundling.
Before making a decision, it’s always wise to explore discounts from several different insurers and compare quotes to ensure you get the most favorable deal.
Quick Facts About Bundling Home and Auto Insurance
- Not all insurance companies provide bundling discounts for home and auto insurance policies.
- Opportunities may exist to bundle other types of insurance, such as renters and life insurance, for added savings.
- Bundling policies isn’t always guaranteed to result in lower premiums.
Best Companies to Bundle Home and Auto Insurance
Insurify has identified the top insurance companies for bundling home and auto insurance. The table below highlights the leaders in the industry, based on savings, customer satisfaction, and financial strength. However, remember that the “best” insurer depends on your individual needs and circumstances. It’s crucial to compare quotes from multiple companies before making a decision.
Disclaimer: The data in this table is based on real-time quotes from Insurify’s network of over 50 partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may differ based on the policy buyer’s unique driver profile.
The top insurance companies excel by providing a strong combination of comprehensive, high-quality coverage options, customer-focused service, and affordable premiums. Insurify considered all these aspects when determining the top five insurers. The best choice for you may vary. It’s always best to compare quotes from multiple companies before buying a policy.
Best Insurer for Maximizing Savings: State Farm
State Farm customers can save a substantial $1,273 per year by bundling their home and auto insurance. This highly-rated and reliable insurer is a good option to consider, particularly if you are a homeowner or driver looking to save money. State Farm has the added benefit of offering condo and auto bundling policies as well.
Pros:
- A++ (Superior) financial strength rating from AM Best.
- Above-average J.D. Power customer satisfaction scores for home and auto.
Cons:
- Does not offer gap insurance.
- Not available in Massachusetts and Rhode Island.
Best Insurer for Motorcycle Riders: Allstate
Allstate is an excellent choice for motorcycle enthusiasts. In addition to bundling home and auto insurance, Allstate offers the option to include motorcycle and off-road vehicle insurance in your bundle. For standard home and auto bundles, customers can potentially save up to 25%.
Pros:
- Above-average J.D. Power customer satisfaction score for auto.
- A (Excellent) financial strength rating from AM Best.
Cons:
- Below-average J.D. Power customer satisfaction score for home.
- Higher-than-average number of complaints with the National Association of Insurance Commissioners (NAIC) for homeowners.
Best Insurer for Boat Owners: Nationwide
Nationwide is an ideal choice for boat owners because it is one of few insurance companies that allow you to bundle boat insurance. However, while you can bundle auto insurance with boat insurance to save, you cannot bundle auto, home, and boat policies all together. Customers who solely bundle home and auto insurance with Nationwide can save up to 20%.
Pros:
- A (Excellent) financial strength rating from AM Best.
- Can bundle boat insurance with auto insurance.
Cons:
- Below-average J.D. Power customer satisfaction scores for both home and auto.
- Higher-than-average number of complaints with the NAIC.
Best Insurer for Local Service: Farmers
Farmers’ bundling discount may not be the most significant, but this insurer provides customer access to an extensive local agent network throughout the country. When bundling home and auto insurance, people can save up to 10%; however, they can expect excellent customer service with this option.
Pros:
- Above-average J.D. Power customer satisfaction score for auto.
- A (Excellent) financial strength rating from AM Best.
Cons:
- Below-average J.D. Power customer satisfaction score for home.
- Doesn’t offer gap insurance.
Best Insurer for Active Military, Veterans, and Their Family Members: USAA
USAA is the best bundling option for active military members, veterans, and their families. While you can only save up to 10% by bundling home and auto insurance with the insurer, qualifying for USAA coverage offers numerous other benefits, such as deals and exclusive offers.
Pros:
- A++ (Superior) financial strength rating from AM Best.
- Offers banking and financial products in addition to insurance.
Cons:
- Only available to active military, veterans, and their families.
- Higher-than-average number of complaints with the NAIC for auto.
How to Find the Best Home and Auto Insurance for You
Finding the right home and auto insurance can sometimes feel overwhelming. While the main goals are reliable coverage and low premiums, it’s wise to be as informed as possible. Here are tips to help you:
- Assess Your Needs: Carefully think about the specific types of coverage you require. Be especially mindful of your coverage needs if you plan to bundle your home and auto policies. It’s advisable to check what coverage policies are offered on the insurance companies’ websites.
- Check Customer Reviews: Before purchasing an insurance policy, carefully review customer feedback. A great insurer often has affordable rates and exemplary customer service. Visit the Better Business Bureau, Trustpilot, and J.D. Power to access customer satisfaction information.
- Ensure Insurer Financial Strength: An insurer’s financial stability is key. A financially sound insurer has the resources needed to pay out claims. Look for ratings from AM Best; an A rating or higher indicates a financially sound insurer.
- Compare Quotes: It is crucial to compare insurance quotes from multiple insurers before making a purchase. Every insurer has its unique method to determine premiums. Comparing pricing from at least three different providers provides a better chance of finding the best price.
Should You Bundle Your Home and Auto Insurance?
Whether or not to bundle insurance doesn’t have a simple, universally correct answer. Your decision should depend on factors such as your specific situation and the potential savings you could achieve through bundling. Bundling is a common way to save money on home and auto insurance. Also, if you’re not a homeowner, many insurers provide auto and renters insurance bundling.
Pros and Cons of Bundling
While bundling offers potential cost savings, it’s wise to review the pros and cons before proceeding.
Pros
- Bundling often results in cost savings.
- Simplifies policy management.
- Consolidates your payments.
Cons
- Limits coverage options to a single insurer.
- Your chosen insurer might excel in one type of insurance (e.g., auto) but not in another (e.g., home), or vice versa.
- Depending on the insurer, individual policies might be cheaper than bundling, although this is less common.
How to Get Cheaper Home and Auto Insurance
Several strategies can help you obtain more affordable home and auto insurance.
- Compare Home Insurance Quotes: Gathering quotes from at least three different companies is the most effective strategy for saving money. Each insurer uses different rating factors. Doing this will ensure you obtain the best option for your needs.
- Compare Car Insurance Quotes: Just like with home insurance, auto insurance premiums vary based on the insurers’ rating factors; therefore, it’s always advisable to obtain car insurance quotes from at least three different companies.
- Inquire About Discounts: Insurance providers offer a variety of discounts, which are a good way to save money on your insurance policies. Ask about the discounts you’re eligible for.
- Bundle Your Auto Insurance With Home Insurance: This is a popular discount that can help you save hundreds annually, while also making policy management much simpler.
- Increase Your Deductible: Raising your auto or home insurance deductible will immediately lower your premiums, but keep in mind that it means higher out-of-pocket costs if you submit a claim. Carefully evaluate your ability to cover a higher deductible before deciding.
Home and Auto Insurance Bundles FAQs
Explore these FAQs to determine if bundling home and auto insurance suits your needs.
- Bundling home and auto insurance almost always represents a practical choice. Insurance companies often provide significant discounts for bundling as a way to attract more business. This approach simplifies policy management and payments while saving you money.
- If data from Insurify is used, Westfield, Grange, and Hastings Mutual have the cheapest homeowners insurance nationwide. For insurance, homeowners typically pay annual averages of $1,080, $1,220, and $1,364, respectively. However, your rate will vary. Always compare home insurance quotes before purchasing a policy.
- Yes, you can bundle auto and renters insurance if your insurer offers it. Many insurance companies offer these bundling discounts, a good option if you don’t own a home. Seek this information from your insurance company.
- According to Insurify data, COUNTRY Financial, NJM, and Auto-Owners have the cheapest auto insurance. Drivers pay $16, $28, and $33 as monthly payments for liability coverage, respectively; however, your rate depends on a few factors, so compare car insurance quotes from multiple companies before deciding.
