How Bundling Your Insurance Can Save You Money

A guide on how bundling insurance policies can save you big money.
Insurance agent helping couple bundle policy

Nobody wants to pay more than they need to for insurance. You could get a big discount on your rates if you bundle your insurance policies. Bundling means buying home, auto, or other types of insurance from the same provider. Insurance companies make it easy to bundle your different policies because they offer various types of insurance.

This article will tell you about the best ways to bundle your insurance policies so you can maximize your savings. This will include:

  • Defining bundling
  • The benefits of bundling
  • What types of insurance you can bundle
  • How to do it
  • Whether you should bundle or not
  • Answering common questions about bundling

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What is Insurance Policy Bundling?

Insurance bundling is when you combine other types of coverage under the same company. For example, bundling home and auto under one policy. Doing so can lower your insurance rates. It can also be more convenient to keep all of your insurance under the same carrier.

What are the Benefits of Insurance Bundling?

Bundling your insurance policy can have a lot of perks. The benefits can vary with each company. But all of them have some sort of benefit for you to take advantage of. Here are the main reasons to bundle your insurance:

You’ll Save Money by Bundling

Bundling your auto insurance policy with other types of coverage is one of the best ways to lower your rates. For example, American Family Insurance says that customers will save up to 23% on their insurance if they bundle home and auto with them. These are huge savings that you can’t look past when buying your insurance.

Companies also love to reward their customers for their loyalty. Sticking with the same provider for all of your insurance needs can pay dividends. You can also net a discount on your premiums if you stick with the same company for a long time. Insurers will see you as a loyal customer and reflect it in your rates.

It’s Convenient to Bundle

This one’s basic but important. Bundling insurance under the same provider can save you from wasting extra time and stress. You won’t have to keep track of a bunch of insurance providers and their different prices or renewals. This makes it so you have less paperwork to sort through when managing your insurance and finances. Bundling makes it so you can pay for all of your policies with just one payment. Everything will be under one roof. It’s also a comforting fact that you will likely save more money in the long run.

Bundling Can Allow for More Flexibility

Keeping all of your insurance under one provider can provide you more flexibility. Most carriers are willing to work with you if you need to change or add more insurance. For example, you might want to shift from renters to homeowners insurance if you just bought a new house. You can always add a new product onto your policy with no hassle. Insurers and your agent can help you easily add or switch policies while still keeping everything in a bundle.

How Do I Bundle My Insurance?

Insurance companies make it very easy to bundle your policies together. This is because they offer several packages that you can select, and which fit your needs. To bundle your insurance, you’ll need to contact your desired insurer and get the ball rolling with the policies you want. Keep in mind that only certain types of insurance are available for bundling, so you’ll want to know if the insurer you want to work with offers what you need.

Types of Insurance You Can Bundle

Insurers offer multiple types of insurance that you can bundle together. Here are the most common types of insurance that you’re able to bundle:

  • Auto
  • Homeowners
  • Renters
  • Boat and watercraft
  • ATV
  • Motorcycle
  • RV
  • Condo
  • Umbrella Insurance
  • Life

These are only some of the main types of insurance types you can package together. Be sure to check with your agent to find out what exactly you can bundle.

Also, note that not all insurance companies offer the same bundles. You may need to do some research to find what carrier is best for your needs. RateSonic has already done the hard research for you to find the best car and home insurance bundle. All you’ll need to do is compare each company and find the best one based on your needs.

Types of Insurance You Can’t Bundle

While you can bundle many types of insurance, here are some that you can’t include:

  • Pet insurance
  • Health insurance
  • Any type of insurance that your provider doesn’t offer

Bundles only work if the company offers both types of insurance. For example, if a company doesn’t have renters or motorcycle coverage, you can’t bundle them with auto. Make sure to check with your agent or insurer to find out if they offer the types of insurance you want to bundle.

You don’t just have to bundle two types of insurance either. There’s also the option of having an all-in-one type of policy. This means buying all of your insurance with the same provider for what would likely be a big discount.

How Big of a Discount Should You Expect?

It’s no secret that bundling your policies can save you money. But the savings aren’t the same across the board. You should expect to save anywhere from 4 to 25% by bundling your policies. Progressive claims that their customers save an average of 4% if they bundle their insurance.

Here’s a table to help you compare auto and home insurance bundling discounts between the top companies:

ProviderDiscount
State FarmUp to $1,127
Progressive4% on average
AllstateUp to 25%
American FamilyUp to 23%
GEICOCan vary based on rate factors
Liberty MutualUp to $947
NationwideUp to 20%
USAAUp to 10%
Farmers InsuranceUp to 20%
TravelersUp to 13%
ErieVaries by State
Farm BureauVaries by State
Shelter InsuranceVaries by Coverage
COUNTRY FinancialUp to 25%
MercuryUp to 15%
AmicaUp to 30%
NJMVaries by Coverage
Note: the discounts above are from each insurance provider’s website. These aren’t in any order. Discounts vary for each customer based on rate factors such as age, credit history, driving record, and more.

Keep in mind that the discount you get will also depend on different factors, such as:

These are also factors that affect your insurance rates. Insurers will use these to calculate your premiums and it will be unique for every customer.

What Are the Best Companies for Bundling Home and Auto?

There are several options out there for bundling your home and auto insurance. This is one of the most common bundles that insurers offer their customers. Each company offers its own discount. Keep in mind that how much you save can also depend on rate factors unique to you, such as your age, credit rating, and driving record. These are our top picks for the best home and auto insurance bundles:

  1. State Farm
  2. Allstate
  3. Nationwide
  4. USAA
  5. American Family
  6. Farmers
  7. Progressive

Should You Always Bundle Policies?

Bundling policies has great benefits for those who want to do it. But not everyone should. In some cases, it might be cheaper to use different companies for each policy.

Bundling your insurance policies doesn’t always guarantee that you will save money. Insurance rate factors such as your age, credit history, and driving record can affect what type of savings you’ll receive. Providers may also not carry the type of insurance that you want to bundle, or it may not be for the right price. To make sure that you get the best rates, it’s a smart practice to gather insurance quotes and compare them.

Here’s why bundling your policies might not be worth it:

  • After comparing, it’s clear that you will save more by using separate companies.
  • Another company has a really good deal on homeowners or other types of insurance, but you still want to keep your current provider for auto.
  • Rate factors such as your driving record, credit history, and age affect your ability to get a discount.

Bundling your insurance policies can be a great way to save extra on your rates. But be sure that you are maximizing your savings, either through bundling or by using separate companies for each policy.

Frequently Asked Questions

Q: Can you bundle health insurance with auto?

A:  No, you can’t bundle health insurance with auto. This is a common misconception about bundling policies. Pet and health insurance are not an option if you’re looking to bundle policies. Typically, the types of insurance you can bundle with auto insurance are:

Remember that companies don’t always offer the same types of insurance. Or they do offer them, but not as a package deal. Be sure to check with your insurer about what specific bundles they offer.

Q: Is it always cheaper to bundle car and home insurance?

A: No, it’s not always cheaper to bundle car and home insurance. What you should do here really depends on how much you can save. Companies don’t always offer the same discount. American Family Insurance can save their customers up to 23%, while Progressive averages savings of around 5%. You’ll want to check your rates for each company to find out what you’ll need to pay. This is the surefire solution to know if bundling is right for you.

Q: Can I buy auto insurance and then bundle it with home later?

A: You can always add on a new product later. If you just bought a house and need to buy home insurance, you might want to add it with the same company that carries your auto policy. Insurance companies make it easy to do so.

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