Should You Bundle Auto and Renters Insurance, and Is It Worth It?

A home and auto insurance bundle combines your homeowners and car insurance policies with the same insurance company.

For many homeowners, bundling is worth it because it can reduce insurance costs and simplify billing and claims. But the cheapest option isn’t always a bundle, so it’s important to compare bundled and separate quotes before choosing a policy.

Bundling home and auto insurance means purchasing both policies from the same insurer. In return for buying multiple policies, insurance companies often apply a bundling, or multi-policy, discount. The discount is typically applied automatically on qualifying policies.

Most major insurers, including State Farm, Allstate, Progressive, and Nationwide, offer bundle discounts. The Insurance Information Institute (III) notes that bundling is one of the most common ways to save on insurance. However, discount savings vary by company and state.¹

You can usually save between 10% and 25% or more when you bundle auto and home insurance. 

Your actual savings will depend on factors like your driver profile, claims history, coverage needs, insurer, and types of policies you’re bundling.²

Many major insurers reward customers who combine home and auto coverage, but the savings vary widely by company and location.

Here’s how bundling discounts compare across major insurers:

To bundle home and auto insurance, choose an insurer that offers both policies, request a quote, and combine your coverage under one company. The process usually only takes a few steps:

1. Gather your current policy information. Get your current coverage details from your homeowners and auto insurance declarations pages.

1. Request a bundle quote. Select the appropriate bundle, like auto and home or renters insurance, and request a quote for each.

2. Review your coverage options. Confirm your coverages, policy limits, deductibles, and discounts before switching.

3. Switch your policies. Once you’ve chosen an insurer, schedule your new policies to begin before canceling your old coverage to avoid a lapse.

Many insurers allow you to manage bundled policies through one account, but your home and auto policies will still have separate coverage terms and deductibles.

A bundle doesn’t change how much coverage you need. Choose coverage limits based on your assets, financial risk, and home and vehicle values — not the size of the discount.

For auto insurance, III recommends buying liability limits high enough to protect your assets and savings.³ If you finance or lease your vehicle, or simply can’t afford to fix it out of pocket, consider adding comprehensive and collision coverage. Gap insurance can help cover the difference between what you owe and your vehicle’s value if it gets totaled in a covered loss.⁴

For home insurance, purchase enough dwelling coverage to fully rebuild your home and consider including replacement cost to protect against inflation. Your policy should include enough personal property coverage to replace all your belongings.

Like car insurance, make sure you have enough liability coverage to protect your assets. Separate flood or earthquake insurance may be needed if they’re excluded from your standard policy.⁵

Bundling shoppers tend to be long-tenured homeowners. In fact, Luva data shows 63% of homeowners interested in bundling home and auto have had continuous coverage for five or more years.⁶

But there’s multiple reasons to compare home and auto bundled policies. Here’s a look at some pros and cons:

When does bundling not make sense?

Bundling isn’t always the best choice if separate policies provide better coverage or a lower total price. 

This matters for drivers with a recent incident. Luva’s research found that bundling-interested shoppers actually have a slightly lower ticket rate than non-bundlers (15.3% vs 15.7%), but a 19% higher accident rate (15.5% vs 13%).⁶ One reason may be that a single incident can raise both auto and home premiums at once. A driver with a recent violation may find better auto rates with one insurer while getting cheaper homeowners coverage from another.

If you have recent violations, claims, or changing coverage needs, it may be beneficial to compare separate policies rather than assuming a bundle offers the lowest rate. Even long-time customers can save by comparing their current bundle with other options.

Luva can help you compare multiple quotes in one place, so you can weigh coverage and price without the runaround.

Although the home and car insurance bundle is the most common, you may also be able to bundle auto with:

• Renters insurance

• Condo insurance

• Life insurance

• Motorcycle insurance

• Boat insurance

• RV insurance

• Umbrella insurance

The best way to compare bundle vs. separate policies is to look at coverage, features, and total cost, not just the discount savings. A larger bundle discount doesn’t always mean a lower final premium, especially if one policy has higher rates, deductibles, or fewer coverage options.⁷

When getting quotes, ask for rates for bundled and separate policies. Compare coverages, deductibles, discounts, and premiums on both. 

Bundling may be a good choice if it simplifies payments and lowers your overall costs. Separate policies may make more sense if another insurer offers better rates or coverage for one policy type.