Is It Cheaper to Bundle Home and Auto Insurance
Bundling usually costs less than buying the two policies separately, but not with every insurer, so it's worth checking both ways.
Usually, but check the actual numbers
For most households, bundling home and auto with the same insurer costs less than buying them separately. Insurers offer a discount for carrying both policies, and that discount is often larger than whatever small savings you'd find by shopping each policy with a different company.
It doesn't hold every time. Some insurers price their home or auto coverage higher to begin with, and the bundle discount doesn't make up the difference. The only way to know for your situation is to get a quote for the bundle and a quote for each policy on its own, then compare the total.
Your insurer's pricing for each policy on its own
The bundle discount is a percentage off, but a percentage off a high starting price can still cost more than a competitor's unbundled price. Before you assume the bundle wins, ask what your auto policy would cost by itself and what your home policy would cost by itself, from the same insurer.
Then compare that combined number to what you'd pay for a separate home insurer and a separate auto insurer. Some companies are known for strong pricing on one type of policy and weaker pricing on the other. If your insurer is weak on home insurance, for example, the auto discount might not offset it.
This is worth redoing every so often, not just when you first bundle. Insurers reprice policies at different times, and a bundle that saved you money a few years ago can quietly stop being the cheaper option.
What you give up if you only compare the total
A lower combined price isn't the only thing that changes when you bundle. Look at the deductible and coverage limits on each policy, not just the premium. An insurer can offer an attractive bundled price while setting a higher deductible on the home policy or lower liability limits on the auto policy than you'd choose on your own.
Also check how claims are handled across the two policies. Some insurers process home and auto claims through the same adjuster or account, which some people find more convenient and others find limits their options if a dispute comes up.
If you're comparing a bundle against separate policies, ask for the same deductible and coverage limits on both quotes. Otherwise you're not really comparing price, you're comparing two different packages that happen to have different totals.
Questions people ask about this
Does bundling affect my auto insurance rate if I file a home insurance claim?
It can, depending on the insurer. Some companies price bundled policies as a package, so a claim on one policy may affect how they view your overall risk at renewal. Ask your insurer directly how claims on one bundled policy affect the other before you file.
Can I bundle home and auto insurance with different insurers?
No, the bundle discount requires both policies to be with the same insurer. If you want to keep different companies for each, you can still shop both for the best price, you just won't get the multi-policy discount.
What other policies can I bundle with home and auto?
Many insurers let you add umbrella coverage, renters insurance for a second property, or policies for a boat or motorcycle to the same bundle. Ask your insurer what qualifies, since this varies by company.
Will bundling home and auto insurance affect my ability to switch insurers later?
You can switch either policy at any time, but if you leave one you'll likely lose the bundle discount on the other. Check the cancellation terms on both policies before you decide to move just one.
Is it better to bundle home and auto insurance or use two specialized insurers?
It depends on how competitive each insurer is for each type of policy. A specialized home insurer or a specialized auto insurer can sometimes beat a general insurer's bundled price, so it's worth getting quotes from both approaches before deciding.
See what a bundled quote looks like next to separate ones for your home and car.
Pull up your current home and auto declarations pages so you have your coverage limits and deductibles on hand. Get a bundled quote from your current insurer, then get a separate quote for auto and a separate quote for home from at least one other company each. Match the deductibles and limits across all the quotes before comparing totals, otherwise the numbers won't mean much. Ask each insurer directly how a claim on one policy affects pricing on the other, since this varies. Do this again at your next renewal, since a bundle that made sense this year may not next year.
