Is It a Good Idea to Bundle Car and Home Insurance
Bundling usually lowers your total cost, but only if the bundled price beats what you'd pay buying each policy separately.
Yes, for most people, but check both prices separately first
Bundling your car and home insurance with one company usually costs less than buying the two policies from different insurers. Insurers want to keep both pieces of your business, so they price the bundle to make that worth your while. For a lot of households this also means one renewal date, one login, and one person to call if something goes wrong on either policy.
But the discount only matters if the underlying prices are competitive. An insurer can offer a generous bundle discount and still charge more overall than two separate policies from other companies. The only way to know is to price your home and car coverage together and apart, then compare the total.
Your insurer's strength in each line of business
Some insurers are strong on auto and weaker on home insurance, or the other way around. If the company you're bundling with isn't actually competitive on one of the two policies, the bundle discount might not make up the difference.
This is worth checking even if you've used the same company for years. Insurers reprice their home and auto books at different times and for different reasons, so a company that was a good deal on both five years ago might now only be strong on one.
Ask your agent or the insurer directly to break out what each policy costs on its own, with and without the bundle discount applied. If they can't or won't show you that breakdown, get a quote from another company for comparison.
What a claim on one policy does to the other
When your home and car insurance are with the same company, a claim on one can sometimes affect the price of the other at renewal, depending on the insurer and the state. This isn't true everywhere and isn't true of every company, so ask directly how claims are handled across bundled policies before you sign up.
A related point: if you bundle and then later want to leave for a better rate on just one policy, you may lose the bundle discount on the other. Some people end up staying with an insurer longer than they would have otherwise because unwinding the bundle costs more than it saves.
None of this means bundling is a bad idea. It means it's worth knowing how the insurer treats claims and cancellations before you combine the two policies, not after.
Questions people ask about this
Does bundling home and auto insurance affect my car insurance rate if I file a home claim?
It depends on the insurer and sometimes the state, so there's no single answer. Some companies keep the two lines separate for rating purposes, others look at your overall claims history across all policies you hold with them. Ask the insurer directly how a claim on one policy affects pricing on the other before you bundle.
Can I bundle car insurance with a home insurance policy from a different company I already have?
Usually you need both policies with the same insurer to get the bundle discount, though some insurers partner with other companies to offer a similar discount. Ask your current home or auto insurer whether they have an arrangement like this before switching either policy entirely.
Is it worth bundling if I rent instead of own my home?
Renters insurance can usually be bundled with car insurance the same way homeowners insurance can, and the discount logic works the same. Ask your auto insurer whether they write renters policies and what the combined price looks like compared to separate policies.
Will bundling home and auto insurance hurt me if I move to a new state?
Moving can change your rate on both policies regardless of whether they're bundled, since each state has its own rules and each insurer prices differently by location. Check with your insurer whether they write both home and auto coverage in the state you're moving to, since not every company operates in every state.
Should I bundle if I only have one car but own my home outright?
Owning your home outright doesn't change whether bundling saves money, since the discount is based on holding both policies with one insurer rather than on having a mortgage. Get a combined quote and a separate quote for each policy to see which actually costs less for your situation.
See what your car and home insurance would cost bundled and separate before you decide.
Pull up your current car and home insurance declarations pages so you have your coverage limits and renewal dates on hand. Call your current insurer and ask for a bundled quote, then ask them to show you what each policy costs on its own. Get at least one quote from a different insurer for comparison, since your current company isn't always the cheapest option even with a bundle discount applied. Ask specifically how they handle a claim on one policy affecting the other, and what happens to your discount if you later drop one policy. Compare the total annual cost across all the options before your next renewal date, not after.
