Should I Bundle My Homeowners and Car Insurance?

Adam Morgan
Adam Morgan

Bundling your homeowners and auto insurance with the same company can lead to discounts of up to 30%, depending on individual factors. Bundling could also make insurance providers less likely to drop you in the event of “excessive” claims or violations. But in some cases, using two separate providers could still be cheaper, so it’s always a good idea to shop around for individual quotes and bundled quotes to compare.

The case for bundling insurance

It’s usually cost-effective: More often than not, it’s cheaper to bundle as many insurance policies as possible with the same company — homeowners, auto, pet, travel, you name it. The more expensive your policies are, the larger your bundling discount will be, though most will probably fall near the national average of 16%, and there are exceptions for luxury vehicles (see “Things to consider” below).

It makes you harder to drop: Auto insurance companies keep an eye on your driving record. Homeowners insurance companies keep an eye on your claims. A provider can drop you as a customer if they think you’ve become too great a risk. But the more policies you bundle with them, the more valuable you are, and the less likely you are to be dropped for multiple claims or violations in a short period of time. Just don’t rely on bundled policies as the only factor to keep you from being penalized.

You only have to navigate one bureaucracy: Figuring out a single provider’s claims and customer service infrastructure can be challenging enough. Dealing with one company for all your insurance needs can make your life simpler.

The case for using separate insurance providers

It’s not always cheaper to bundle: Even with a 5% to 15% bundle discount, some individuals will still pay less overall if they purchase homeowners and auto insurance policies from different companies. It depends on dozens of personal factors that differ from provider to provider, so it’s always worth comparing quotes to see if bundling is worth it for you.

Providers might take advantage of your loyalty: If you’re a bundled customer, insurance companies know you’re more likely to stick with them for the long haul, even if your premiums get more expensive over time. Keep an eye on your costs and discounts, and compare quotes again any time your rate increases due to “pricing optimization.”

Things to consider

The price of your home: The more valuable your home, the bigger your discount is likely to be for bundling homeowners and auto insurance.

The price of your vehicle: On the flip side, luxury vehicles can drive up your bundled premiums because of their high cost to repair. You might be better off with separate policies, but it never hurts to check.

Where you live: People who own homes in high-risk areas for flooding and other insurance-covered disasters won’t save as much on bundled policies as those who live in safer places.

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About the Authors

Adam Morgan

Adam Morgan Contributor

Adam Morgan is a former senior editor for He's written about banking, credit cards, home warranties, insurance, and many other subjects (like running shoes) to give our readers the best information to assist in their buying decisions. His writing has been featured in The Los Angeles Times, Chicago Tribune, The AV Club, The Guardian, Chicago magazine, Minneapolis Star-Tribune, and elsewhere.