Bundling your homeowners and auto insurance with the same company can reduce your total premium, but realistic 2025 savings generally fall in the 5%–25% range and vary by state, carrier, and which policy gets the discount. While some older marketing referenced discounts of up to 30%, current carrier caps commonly sit at 20%–25%—for example, Allstate up to 25%, Nationwide up to 20%, Travelers up to 12% off the home policy, and Erie up to 25%. Independent 2025 analyses place typical bundle savings in the 5%–25% range (Bankrate; Forbes Advisor). Bundling can simplify billing and claim coordination, but it does not override state nonrenewal rules—cancellations/nonrenewals follow underwriting and state law (NY DFS). Always compare individual and bundled quotes at each renewal; shopping remains elevated as prices and discounts change (J.D. Power 2025).
The case for bundling insurance
It’s usually cost-effective: Major carriers advertise multi‑policy savings mostly in the 5%–25% zone, often with a specific cap on one line—for example, Allstate up to 25%, Nationwide up to 20%, Travelers up to 12% off the home policy, and Erie up to 25%. Independent roundups in 2025 similarly find typical bundle savings around 5%–25% (Bankrate; Forbes Advisor). Home + auto tends to deliver the largest credit, and the home policy is often the discounted component (explicitly noted by Travelers). Bundling can also unlock preferred umbrella pricing. In 2025, some insurers are evolving bundles into service‑led or embedded offerings (e.g., smart‑home sensors, connected‑car services) in addition to price credits (Deloitte; EY).
It makes you harder to drop: More accurate to say bundling can make you more attractive to retain, not immune to nonrenewal. State rules govern cancellations/nonrenewals and required notice (NY DFS), and some states impose post‑disaster moratoriums (California DOI). Market actions illustrate the point: even long‑tenured customers have faced nonrenewals in stressed areas (Reuters).
You only have to navigate one bureaucracy: One carrier for billing, policy changes, and claim coordination (for example, a storm damaging home and cars) can simplify your life. Bundled households also tend to shop less, which is reflected in higher retention rates in industry research (J.D. Power 2025).
The case for using separate insurance providers
It’s not always cheaper to bundle: With auto premiums at record levels and wide carrier dispersion, a strong monoline auto offer (e.g., a telematics/UBI program) can beat a bundle for some drivers. The BLS motor‑vehicle insurance index remains near record highs following sharp increases through 2024–2025 (BLS CPI), and shopping is elevated (J.D. Power 2025). In catastrophe‑exposed states, homeowners coverage may only be available via a residual market that cannot be bundled (e.g., California FAIR Plan), and availability constraints are documented by industry sources (Triple‑I). Always compare total household premium for bundled vs. separate quotes with identical limits and deductibles.
Providers might take advantage of your loyalty: Pricing optimization can erode discounts for low‑shopping, long‑tenure customers. Regulators are tightening transparency around price changes and fees (FTC proposed rule on unfair or deceptive fees; Ofcom work on in‑contract price rises; CMA loyalty‑penalty findings). Monitor each renewal, confirm which multi‑policy credits still apply, and re‑shop if your rate climbs or features change—price sensitivity remains high (PwC 2024).
Things to consider
The price of your home: Many insurers apply the multi‑policy credit to the homeowners policy—Travelers explicitly lists up to 12% off home when paired with auto. Independent research reports average bundle savings of roughly 14% on auto and 12% on home, with availability and amounts varying by state and insurer (Bankrate). For high‑value homes, bundling may also influence umbrella eligibility/pricing, so evaluate the total household cost.
The price of your vehicle: Luxury and performance models typically carry higher auto premiums due to expensive parts, ADAS calibration, and theft risk. 2025 rate studies show many luxury vehicles among the most expensive to insure (Forbes Advisor), supported by elevated repair severity and loss data (CCC Crash Course 2025; HLDI). A bundle still applies a percentage discount, but the post‑discount total with a luxury car generally remains higher than with a mainstream vehicle.
Where you live: Location drives both eligibility and dollar savings. In wildfire or hurricane regions, carriers have reduced homeowners capacity, which can remove bundle options or shift customers to residual markets (Triple‑I); for example, State Farm announced plans to nonrenew about 72,000 California property policies (Reuters). Even when bundling is available, discounts are percentage‑based and vary by state, so the dollars saved depend on local base rates—now elevated for auto (BLS CPI)—and property‑level risks such as flood pricing under FEMA’s Risk Rating 2.0 (FEMA).
What’s next?
- If you’re buying home insurance for the first time (or switching), see our homeowners insurance buyer’s guide. Then quote both bundled and separate options and compare total household cost; typical 2025 bundle ranges are about 5%–25% (Bankrate; Forbes Advisor).
- We researched the best homeowners insurance and best auto insurance providers, so take a look and compare quotes—note carrier‑specific caps like Allstate up to 25%, Nationwide up to 20%, and Travelers up to 12% off home.
- Learn about the factors that determine how much your home insurance will cost—availability and location risks can limit bundling in some states (Triple‑I).
- Here are 8 ways you can lower your home insurance premium—add mitigation where credited, and if bundling isn’t available, optimize each line separately (e.g., home via FAIR Plan if needed and auto with strong telematics savings) (California FAIR Plan; J.D. Power 2025).
