One of the simplest and most effective ways to save on both your auto and home insurance is to purchase them from the same company. Known as bundling or multi-policy discounting, this strategy can reduce your total insurance costs by 10% to 25% while also simplifying your insurance management.
How Bundling Discounts Work
When you purchase multiple policies from the same insurer, the company rewards you with a discount on one or both policies. The logic from the insurer’s perspective is straightforward: they acquire a more valuable customer with lower marketing costs, and customers with multiple policies tend to stay longer and file fewer claims.
Typical bundling savings range from $300 to $700 per year, depending on your coverage levels and location. Some companies offer flat percentage discounts, while others apply varying discounts to each policy.
What Can You Bundle?
The most common bundle is home and auto insurance, but many companies offer discounts for other combinations as well. You can bundle auto with renter’s insurance, condo insurance, motorcycle insurance, boat or RV insurance, umbrella insurance, and even life insurance with some companies. The more policies you bundle, the greater your total discount tends to be.
Beyond the Discount: Other Benefits
Bundling offers advantages beyond just saving money. You’ll have a single point of contact for all your insurance needs, making it easier to manage your policies. You’ll receive one bill or can coordinate payment dates, simplifying your finances. Filing claims is easier when one company handles everything.
Some insurers also offer vanishing deductibles for bundled customers, where your deductible decreases for each year you go without a claim. Others provide accident forgiveness, which prevents your first at-fault accident from raising your premium.
When Bundling Might NOT Save Money
Despite the discount, bundling isn’t always the cheapest option. In some cases, buying separate policies from different companies could save more money than the bundle discount provides. This is especially true if one company is significantly cheaper for auto but expensive for home insurance.
The only way to know for sure is to compare the total cost of bundled policies versus the best individual rates from different companies. Take the time to get quotes both ways before making a decision.
Tips for Getting the Best Bundle Deal
Start by getting bundled quotes from your current insurer, then compare with at least three other companies. Ask each company about the specific discount percentage for bundling and whether there are additional bundle-exclusive benefits. Review your bundle annually since rates change and your current bundle may no longer be the best deal available.
