How to Bundle Auto Insurance with Home Insurance: Ultimate Savings Guide 2025

In the ever-escalating world of insurance premiums, bundling your auto and home insurance has become something of a financial life hack. It’s like the combo meal of the insurance world—you get what you need at a better price, and you don’t have to place multiple orders. But not all bundles are created equal, and the difference between a good bundle and a great one could mean hundreds or even thousands of dollars in your pocket over time.

Understanding Insurance Bundling Fundamentals

Before diving into specific companies and strategies, let’s break down what bundling actually means and what kind of savings you can realistically expect.

What Is Policy Bundling and How Does It Work?

In the simplest terms, insurance bundling means purchasing multiple insurance policies from the same provider. The most common bundle combines auto insurance with homeowners or renters insurance, though many insurers also offer options to include life insurance, umbrella policies, boat insurance, or other specialty coverages.

But why do insurance companies offer these discounts? It’s not just because they’re feeling generous. Here’s the inside scoop:

• Customer retention is gold in the insurance world. Once you bundle, you’re less likely to shop around and switch companies.
• Administrative costs decrease when managing multiple policies for one customer.
• The lifetime value of a multi-policy customer is substantially higher than single-policy holders.
• Risk diversification—while you might file a car claim, it’s statistically unlikely you’ll simultaneously file a home claim.

Essentially, bundling creates a win-win: companies secure your long-term business across multiple products, and you receive better pricing than purchasing policies separately.

Average Savings from Bundling Policies

The discount you’ll receive varies by company, location, and specific situation, but here’s what real data shows:

• The average consumer saves 8-15% on auto insurance premiums when bundling.
• Home insurance discounts typically range from 10-20% when bundled.
• Total household savings average $600-$950 annually for bundled policies.
• Some companies advertise bundling discounts up to 25%, though these maximum rates typically apply to specific situations.

It’s worth noting that bundling discounts often increase with customer loyalty, meaning your savings percentage may grow the longer you stay with a company. Some insurers offer “longevity bonuses” that kick in at policy renewal milestones (1 year, 3 years, 5 years, etc.).

Benefits Beyond the Discount

While the immediate price break is what draws most people to bundling, there are significant advantages beyond the discount that can provide both financial and practical benefits.

Simplified Policy Management

The administrative advantages of bundling shouldn’t be underestimated:

• Single billing date, often with options for monthly, quarterly, or annual payments
• One customer portal or app to access all policy information
• Consolidated renewal dates (or at least fewer dates to remember)
• One point of contact for service and claims questions
• Streamlined paperwork and documentation requirements

In our busy lives, this simplification represents tangible value—saving time, reducing mental load, and eliminating the hassle of tracking multiple accounts.

Single Deductible Opportunities

Some insurers offer a significant financial advantage in the form of a single deductible benefit:

Claim Process Advantages

When a single incident affects both your home and auto policies (think a garage fire that damages both your house and car), some bundle policies offer:

• One deductible instead of two separate ones, potentially saving thousands
• Coordinated claims handling with a single adjuster overseeing the entire process
• Simplified documentation requirements since information only needs to be submitted once
• Faster resolution times since coordination between departments is eliminated

This benefit alone can be worth more than years of bundling discounts if you experience a significant loss.

Loyalty Rewards and Additional Perks

Bundled policies often unlock special status programs with perks including:

• Vanishing deductibles that decrease each claim-free year
• Accident forgiveness programs that kick in sooner than for single-policy holders
• Diminishing surcharges where rate increases after claims decrease faster
• Premium recalculation intervals where rates are reviewed for potential decreases more frequently
• Special customer service lines with shorter wait times

These “soft benefits” can add significant value over time but are rarely calculated into the initial bundling discount numbers.

Top Insurance Companies for Bundling in 2025

Based on discount percentages, customer satisfaction with bundled services, and special bundle-specific features, these companies currently offer the most competitive multi-policy packages.

State Farm’s Multi-Policy Options

State Farm consistently ranks high for bundling value with:

• Average auto discount of 17% when bundled with home insurance
• Home insurance discounts averaging 35% when bundled
• Single-deductible benefit available in most states for certain qualifying events
• Drive Safe & Save program that provides additional auto discounts based on driving habits
• Home system protection bundling options that cover appliances and home systems

Their standout feature is the “Good Neighbor” loyalty program that increases bundle discounts at 3-year intervals. Their mobile app makes managing multiple policies particularly seamless, with consolidated billing and claims tracking all in one place.

Customers report an average annual savings of $853 when bundling auto and home policies with State Farm.

Allstate’s Bundling Program

Allstate’s bundling approach focuses on customization and rewards:

• Multi-policy discount averaging 25% on auto insurance
• Up to 15% savings on homeowners insurance when bundled
• Bundling unlocks their “Claim Satisfaction Guarantee” program
• Drivewise and Milewise programs offer additional auto savings opportunities
• Claim-free rewards add 5% to your discount for each policy year without claims

Their “Allstate Rewards” program for bundled customers provides points for safe driving and timely premium payments, which can be redeemed for merchandise, gift cards, and travel discounts—essentially creating a loyalty program similar to credit card rewards.

Allstate’s bundles work particularly well for customers with newer vehicles and homes in good condition, as their underwriting guidelines favor these characteristics.

Progressive’s Multi-Policy Approach

Progressive takes a somewhat different approach to bundling:

• Average auto insurance savings of 12% when bundling
• Home insurance discounts typically between 10-15%
• Name Your Price tool helps identify the right coverage level for your budget
• Snapshot program can add substantial additional discounts to bundled auto policies
• Home Quote Explorer makes comparison shopping easier than most competitors

While Progressive doesn’t always offer the highest initial bundling discount, their transparent pricing tools and customer-friendly comparison options often help consumers find the most appropriate coverage mix for their situation. Their “comparison quotes” feature shows you rates from competitors directly on their website—something few other insurers offer.

The company partners with multiple home insurance providers in different regions, meaning your “bundle” might actually involve more than one underwriting company, though the billing and service would still be consolidated through Progressive.

Liberty Mutual Bundle-and-Save

Liberty Mutual’s bundling program emphasizes customization:

• Auto insurance bundling discounts between 12-30% depending on location
• Home insurance bundle savings averaging 20%
• Distinctive RightTrack telematics program that offers up to an additional 30% off auto premiums
• Optional diminishing deductible feature reduces your deductible by $100 each claim-free year
• 12-month rate guarantee on most bundled policies (longer than the industry standard 6-month auto policy)

Their “Accident Protection” feature available exclusively for bundle customers will forgive your first accident without a rate increase, and their paperless policy management system is one of the most user-friendly in the industry.

Liberty Mutual offers particularly strong bundling options for customers with high-value homes and multiple vehicles.

Farmers’ Bundling Benefits

Farmers offers a tiered approach to bundle discounts:

• Auto insurance discounts between 10-20% when bundled
• Home insurance bundle savings of 15-25%
• Signal app provides additional safe-driving discounts specific to bundled customers
• Three customizable package options (Standard, Enhanced, and Premier)
• Declining deductibles feature reduces deductibles by $50-$100 each year (up to $500 total)

Farmers stands out with their “Incident Forgiveness” feature that ignores one claim every three years without raising rates. They also offer bundle-exclusive 24/7 claim service with guaranteed same-day contact from a claim representative.

Their three-tiered package approach allows customers to select bundle features that match their priorities rather than offering a one-size-fits-all bundle solution.

Step-by-Step Guide to Bundling Your Policies

Following a systematic approach to bundling can ensure you maximize savings while maintaining appropriate coverage.

Evaluating Your Current Coverage

Before shopping for bundles, thoroughly assess your existing policies:

1. Review current premium costs for all policies you’re considering bundling
2. Identify coverage levels, deductibles, and any special endorsements
3. Note any claims you’ve filed in the past 3-5 years
4. Check for loyalty discounts or benefits you’d lose by switching
5. Calculate your total annual insurance spend to establish a baseline

This assessment creates your benchmark for evaluating potential bundles. Don’t forget to consider upcoming life changes (new car, home renovations, etc.) that might affect your insurance needs.

Researching Bundle Options

With your baseline established, explore bundling opportunities:

1. Start with your current insurers—they may offer competitive bundles to retain your business
2. Research the top 5-7 bundle providers in your region (bundling benefits vary significantly by state)
3. Check for profession-based discounts (military, teachers, healthcare workers, etc.)
4. Look for membership-based savings through employers, alumni associations, or professional organizations
5. Read recent customer reviews specifically mentioning bundling experiences
6. Compare J.D. Power ratings for both auto and home insurance—strong performance in both areas suggests good bundle value

Remember that the company with the best auto insurance might not have the strongest home coverage, so look at each component critically.

The Quoting Process Explained

Securing accurate bundle quotes requires attention to detail:

1. Gather all necessary information before beginning (property details, vehicle information, driver histories, previous policy declarations)
2. Request quotes with identical coverage levels from each company for valid comparison
3. Ask specifically about all available discounts beyond the standard bundle
4. Inquire about future discount opportunities (paperless billing, autopay, loyalty increases)
5. Check whether quotes include all applicable fees and taxes
6. Verify if special features come standard or require additional payments
7. Confirm how claims would affect both policies within the bundle

Don’t rush this process—take notes during each quote conversation and request email summaries to compare details side by side.

Common Bundling Mistakes to Avoid

Even savvy consumers sometimes fall into these bundling pitfalls. Awareness helps you avoid costly errors.

Focusing Solely on Price

While savings drive most bundling decisions, the lowest price isn’t always the best value:

• Claims handling quality varies dramatically between insurers
• Customer service accessibility becomes more important when managing multiple policies
• Coverage exclusions and limitations might offset savings
• Financial stability ratings matter—check A.M. Best ratings before selecting an insurer
• Policy feature differences can significantly impact real-world value

A bundle that saves $150 annually but excludes important coverages or has a reputation for difficult claims experiences may ultimately cost more than a slightly more expensive option with superior protection and service.

Overlooking Coverage Gaps

Bundling sometimes creates unintended coverage gaps or overlaps:

• Different effective dates can leave temporary coverage gaps
• Auto policy territory limitations might not align with home policy protections
• Personal property coverage might be duplicated or insufficient
• Liability limits might be inconsistent across policies
• Special endorsements might not transfer when switching companies

Work with an agent or representative who specializes in bundle transitions to ensure continuous, appropriate coverage during the change.

Conclusion: Maximizing Your Insurance Bundle Value

Bundling auto and home insurance represents one of the most accessible ways to reduce insurance costs without sacrificing protection. By understanding the mechanics behind bundling, thoroughly researching provider options, following a systematic shopping process, and avoiding common pitfalls, you can create an insurance package that saves money while providing comprehensive coverage.

Remember that the best bundle for your situation balances immediate savings with long-term value, including claims handling, customer service quality, and coverage customization. While the discount percentage matters, the overall experience and protection level should guide your final decision.

Review your bundle annually to ensure it continues to meet your needs and provide competitive value, but be mindful that frequent switching may cost you loyalty benefits that increase over time. With thoughtful planning and regular review, your insurance bundle can provide both financial savings and peace of mind for years to come.

Frequently Asked Questions

Can I bundle policies if my home and auto are in different states?

Most major insurers can accommodate multi-state bundles, though the discount percentage may be lower than for same-state policies. Some regional insurers require all bundled policies to be in the same state. If you own properties in different states, national insurers typically offer the most flexible bundling options.

Will a claim on one bundled policy affect rates on all my policies?

It depends on the insurer and claim type. Many companies isolate claims to the specific policy affected—a fender bender shouldn’t impact your home insurance rates. However, some insurers consider overall claim frequency across all policies when calculating renewal rates. Ask specifically about this when shopping for bundles.

Is it better to bundle through my auto insurer or my home insurer?

Generally, starting with your auto insurer yields better overall results. Auto insurance is typically more price-competitive than home insurance, and most major auto insurers have developed robust home insurance programs. However, if you have a specialty home (historic, high-value, coastal, etc.), starting with your home insurer may provide better coverage options.

How does bundling affect my coverage if I need to file a claim against both policies?

Most bundle programs streamline the claim process when both policies are affected (such as a tree falling on your house and car). You’ll typically have a single claim representative coordinating both aspects, simplified paperwork, and often a single deductible benefit for qualifying events. This improved claim experience represents significant value beyond the discount percentage.

Should I split my bundle if one company offers a significantly better rate on just auto or home insurance?

This requires careful calculation. Compare the total cost of the bundle against the combined cost of the split policies, making sure to account for lost bundling discounts on both sides. Also consider the additional administrative complexity and potential coverage gaps from using multiple insurers. Sometimes splitting makes financial sense, but the convenience benefits of bundling often outweigh modest price differences.