How to Save Money by Bundling Insurance Policies in 2024
Insurance companies offer discounts to customers who sign up for more than one type of insurance.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Sep 9, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 9, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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In general, everyone needs more than one type of insurance, and some customers prefer to keep things simple by purchasing most of their insurance from one of the best companies. The benefit of bundling insurance policies is that if customers buy more than one type of insurance, they can earn a bundling discount, also known as a multi-line, multi-policy, or combo insurance discount.
For example, a customer might purchase auto and home insurance from the same company in order to save on their car insurance rates. Continue reading for helpful advice on bundling policies and the best insurance bundles.
- The most common type of bundled insurance is home and auto insurance policies
- It is essential to compare individual and bundled policies’ prices to ensure you’re getting a good deal
- Usually, companies offer at least 10% off a policy if customers bundle policies
Insurance Policy Bundling Explained
So how does insurance bundling work? Basically, insurance companies offer discounts, primarily car insurance discounts, if customers purchase more than one type of insurance from the company.
Before we get started, let’s take a look at the average annual full coverage auto insurance rates across the U.S.
Drivers can usually save money if they bundle policies rather than buy insurance policies separately from different companies.
For example, you could purchase both auto and home insurance from one company. The discount earned could make your total cost cheaper than if you purchased home and auto insurance from two separate companies.
Other Benefits of Bundling Insurance Policies
There are several benefits to bundling your insurance policies at one company. As we’ve mentioned earlier, the first is that customers earn a discount. While savings vary depending on the insurance company, the best bundle insurance companies usually offer at least a 10% discount.
Another benefit is that bundling makes managing policies easier. Instead of handling multiple accounts, your insurance policies and payments will all be under one account. The last advantage is that your insurance company will be less likely to drop you as an auto insurance customer if you have other insurance policies with the company.
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How to Bundle Insurance Policies
The best place to start bundling insurance policies is by getting quotes for adding another type of insurance with your current company and other companies. Insurance bundle quotes will tell you if it is cheaper to add a second type of insurance to your current insurance plan or if another company offers a better deal.
Your current insurance company also may not offer all the types of insurance you want to bundle, so consider what insurance policies you want to bundle together when searching for a company. You should also look at the rates before the bundling discount and calculate how much the discount will take off.
For example, a company may offer a 25% discount for bundling home and auto, but if its rates are expensive, you may not save very much compared to other companies.
Tips on Bundling Insurance Policies
When looking to bundle insurance policies, consider the following tips to get the best deal:
- Make sure the insurance company isn’t using third parties. Sometimes insurance companies use third-party companies for one part of an insurance policy, which means you lose the convenience of having your insurance in one account.
- Shop around for quotes. Your rates can change yearly, so get quotes yearly to ensure you still get the best deal possible with your insurance company.
Comparing quotes and bundling discounts at multiple providers will help you find the cheapest bundle insurance.
Company Home and Auto Bundles
One of the most common bundles is home and auto insurance policies. How much you can save will depend upon your driving history and location, but to give you an idea of what you can save, we’ve compiled a list of home and auto bundling discounts from some of the biggest insurance companies in the U.S.
At the best multi-policy insurance companies, discounts can range from 10% to 30%. Generally, companies that are already cheaper, such as USAA, will offer lower discounts than discounts at more expensive companies, such as the State Farm bundle insurance discount.
Should I bundle home and auto insurance policies?
Bundling home and auto insurance policies is often the most common type of multi-policy bundling that insurance companies offer. The best thing to do to see if you should bundle home and auto insurance policies is to get quotes.
Get separate insurance and bundle insurance quotes to see if bundling policies at an insurance company is worth it or if you should keep your policies separate for the best rate. Because home insurance policies are more expensive than auto insurance policies, you should see how much you can save on home insurance when bundling.
However, if you have expensive auto insurance because of a poor driving history or an expensive car, you may want to lean more toward finding savings for auto insurance. Overall, it really depends on what you are being charged based on your personal factors. Comparing quotes for both policies will help you decide where you can find the most savings.
Disadvantages of Bundling Insurance Policies
Bundling insurance policies isn’t always in your best interest. Even with a bundling discount, purchasing your coverages at one company may not be cheaper than purchasing them separately. For example, if home insurance is expensive at your auto insurance company, it may be cheaper to purchase it from another company, even with a discount.
You should also consider the quality of the coverages. An insurance company may have great auto insurance, but its home insurance may be poorly rated. Make sure to check the ratings for both coverages that you are considering buying. If one insurance policy is rated poorly, you should purchase it at a different company.
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Final Word on Bundling Insurance Policies
Bundling policies at an insurance company can be a great way to save money. However, it’s essential to ensure that you will save by bundling policies instead of purchasing them separately, and you should always check the ratings for both policies.
To start comparing insurance rates for different policies at insurance companies, use our free quote comparison tool.
Frequently Asked Questions About Bundling Insurance Policies
To ensure all your questions about bundling discounts are answered, we’ve compiled a list of answers to the most common questions.
What is a home and auto bundle?
A home and auto bundle is when a customer purchases both home insurance and auto insurance from the same company. The insurance company will offer a discount to the customer for buying both of these policies.
Is it always the cheapest to bundle home and auto insurance policies?
No, it is not always the cheapest option to bundle home and auto insurance policies. A company may offer cheap auto insurance but have costly home insurance. In this case, even with a bundle insurance discount, you would probably be better off purchasing home insurance from a different company.
Can I bundle auto insurance and renters insurance?
Yes, most insurance companies offer the option to bundle auto insurance with renters insurance for a bundle discount.
What are the cons of bundling home and auto insurance?
Bundling home and auto insurance policies without checking rates can result in you not saving any money with bundled insurance and potentially paying more. In addition, sometimes insurance companies will sell a policy type from a third party, so you aren’t actually making policy management more manageable.
Frequently Asked Questions
What does it mean to bundle insurance policies?
Bundling insurance policies refers to combining multiple insurance policies from the same provider into a single package. Instead of having separate policies for auto, home, and other types of insurance, you consolidate them under one insurer.
How can bundling insurance policies save me money?
Bundling insurance policies can potentially save you money in several ways. Insurance providers often offer discounts or reduced premiums for bundling multiple policies. By consolidating your coverage with one insurer, you may be eligible for a multi-policy discount, resulting in overall cost savings.
Which insurance policies can be bundled together?
The specific insurance policies that can be bundled together vary among insurers. However, commonly bundled policies include auto and home insurance. Other types of insurance, such as renters, condo, or motorcycle insurance, may also be eligible for bundling with the same provider. It’s best to check with your insurance company to understand their bundling options.
Can I bundle insurance policies if I have different insurance providers?
No, bundling insurance policies typically requires having all the policies with the same insurance provider. Bundling is designed to encourage customer loyalty and consolidate coverage under one company. If you have policies with different providers, you may consider switching some or all of them to a single insurer to take advantage of bundling discounts.
How do I find the best insurance provider for bundling?
To find the best insurance provider for bundling, you can follow these steps:
- Assess your insurance needs: Determine which types of insurance policies you require, such as auto, home, renters, etc.
- Research insurance companies: Look for reputable insurers that offer the policies you need and have a history of good customer service.
- Compare bundling discounts: Inquire about the discounts offered for bundling policies and compare them across different insurance providers.
- Evaluate coverage and premiums: Consider the coverage limits, deductibles, and premium costs associated with the bundled policies to ensure they meet your requirements and budget.
- Read customer reviews: Check online reviews or seek recommendations from friends and family to gauge the insurer’s reputation for customer satisfaction.
- Seek personalized quotes: Contact the shortlisted insurance companies to obtain personalized quotes based on your specific insurance needs and bundling preferences.
Will bundling insurance policies affect my coverage?
Bundling insurance policies should not affect the coverage provided by each individual policy. The coverage limits, terms, and conditions of each policy remain intact when bundled. However, it’s essential to review the bundled policy documents carefully to ensure you understand the details of each coverage.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
