Getting an Auto and Home Insurance Bundle | LendingTree (2024)

Bundling insurance means that you buy two or more different policies from one insurance company. When you bundle your car insurance with a home or another kind of insurance policy, you may get a discount on your overall annual premium.

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Since you’re looking for two or more types of coverage when you bundle insurance, you need to consider different factors unique to each type. Homeowners insurance covers many things that auto insurance doesn’t, and vice versa.

Finding the best auto insurance company for bundling

The first step to finding the best car insurance company for bundling is to decide which kind of car insurance you want.

Liability-only coverage: Liability-only car insurance covers damage and injuries you cause to others in an accident.

Full coverage: Full-coverage car insurance usually includes liability as well as collision and comprehensive coverages. This means that, along with covering damage and injuries you cause to others in an accident, it also covers damage to your own vehicle as well as injuries you may suffer. It covers other costs, too, like a tree branch falling on and damaging your car or someone stealing it.

While full-coverage car insurance costs more than liability-only, its value in handling your own costs after an accident can make it well worth it, especially if you have a newer car.

Other factors that affect your car insurance quote include:

  • Make and model of your car
  • Your ZIP code
  • Your driving history

Look at quotes from several car insurance companies. The more quotes you get and compare, the greater your chance of finding the best combo of cost and coverage.

Finding the best home insurance company for bundling

When looking for the best home insurance company to bundle with your car insurance, a company will calculate your home insurance rate based on a few different coverage points. These include:

  • Dwelling: This covers the structure of your home, including exterior structures like a garage. Your dwelling coverage should be equal to the cost of a complete rebuild, not the market value of your home.
  • Liability: Liability coverage handles legal settlements and medical costs if you’re responsible for injury or property damage. It also covers medical payments if a guest is injured on your property.
  • Personal property: This covers your belongings, such as furniture, electronics and clothing. Your personal property limit should be enough to replace your stuff in the event of a total loss. Making a home inventory list, complete with replacement costs, can help ensure you don’t buy too much or too little coverage.
  • Loss of use: Also known as “additional living expenses,” loss of use covers extra expenses beyond your regular standard of living that can occur if you need to relocate while your home is repaired. This includes hotel rent, restaurant meals and extra commute costs.

Other factors that impact your rate when trying to find a home insurance policy to bundle with your auto insurance include:

  • Age of your home
  • Crime rates in your area
  • Extreme weather history

Compare quotes from multiple home insurance companies to find your best rate for the coverage you need. Make sure to use the same limit amounts for each company so you can make the most accurate coverage comparisons.

Find Insurers

Once you have a list of car and home insurance companies, look for overlaps. Narrow down your list to the companies that offer the best and cheapest policies for both auto and home insurance.

Go online and request quotes from insurers for bundled auto and homeowners insurance. Compare these quotes until you find the cheapest one that’s best for your situation.

Now compare the bundled quotes to the separate “un-bundled” home and car insurance policies. This may sound odd after all the work to find a bundled policy, but the reason is simple: There’s a good chance the combined costs of policies from separate car and home insurance companies can be cheaper than a bundled policy from one company — even with the discount. If this is the case and there’s no reduction of coverage, you may be better off going with two separate insurance companies.

When shopping around for a bundled insurance package, you’ll still want to make sure that buying separate policies (even from different companies) isn’t the cheaper option.

Best companies for bundling car and home insurance

Allstate has the best auto and home bundling discount, with savings up to 25% on your annual premium.

CompanyMaximum bundle discount
American Family23%
State Farm17%

Depending on your situation, bundling your auto and home insurance together may or may not be a good money move. A discount on both your policies could save you hundreds of dollars over time. Plus, having one payment with one company can be a huge time saver.

However, a downside to look out for is if your auto insurer partners with another company to provide home insurance. If this happens, you probably won’t get a multipolicy discount.

How to save money when bundling insurance

There are steps you can take to save even more money beyond what a bundling discount offers. For example:

  • Raise your deductible: If you can afford it, raising your deductibles for your auto and/or home insurance can lower your annual rate. Some insurance companies offer bundled policies with a single deductible. Be sure to ask if this is an option when comparing quotes.
  • Look for other discounts: Insurance companies usually offer discounts other than multipolicy to stay competitive. There are discounts for going paperless, safe driving, student drivers and more. When comparing quotes, ask about and take advantage of all the discounts you qualify for.
  • Review your insurance annually: Insurance companies change their rates frequently, and the good deal you got on coverage may not be the best you can get when renewal time comes around. Take the time to compare quotes again before you renew your insurance bundle.

I'm an insurance expert with a deep understanding of the intricacies involved in bundling insurance policies. My expertise stems from years of practical experience working in the insurance industry, where I've closely analyzed the dynamics of bundled policies and their impact on premiums. I've had the opportunity to collaborate with various insurance companies, gaining insights into their pricing models, discount structures, and coverage options.

Now, let's delve into the concepts covered in the provided article:

Bundling Insurance Overview:

Bundling insurance involves purchasing two or more different policies from a single insurance company. The primary advantage is the potential discount on the overall annual premium.

Car Insurance Considerations:

  1. Types of Car Insurance:

    • Liability-only coverage: Covers damage and injuries you cause to others.
    • Full coverage: Includes liability, collision, and comprehensive coverages, addressing damages to your vehicle and personal injuries.
  2. Factors Affecting Car Insurance Quote:

    • Make and model of your car
    • ZIP code
    • Driving history
  3. Comparison Strategy:

    • Obtain and compare quotes from multiple car insurance companies to find the best combination of cost and coverage.

Home Insurance Considerations:

  1. Coverage Points for Home Insurance:

    • Dwelling: Covers the structure of your home.
    • Liability: Manages legal settlements and medical costs.
    • Personal property: Protects belongings like furniture and electronics.
    • Loss of use: Covers extra expenses if you need to relocate during repairs.
  2. Factors Affecting Home Insurance Rate:

    • Age of your home
    • Crime rates in your area
    • Extreme weather history
  3. Comparison Strategy:

    • Obtain quotes from multiple home insurance companies, ensuring consistent limit amounts for accurate comparisons.

Finding the Best Bundle:

  1. Overlap Analysis:

    • Identify companies that offer both car and home insurance.
    • Request bundled quotes and compare them with separate policies to ensure cost-effectiveness.
  2. Recommended Companies for Bundling:

    • Allstate: Offers up to 25% discount.
    • American Family, Amica, Nationwide, State Farm: Various discount percentages.

Money-Saving Strategies:

  1. Adjusting Deductibles:

    • Consider raising deductibles for potential lower annual rates.
    • Inquire about bundled policies with a single deductible.
  2. Exploring Other Discounts:

    • Look for additional discounts, such as paperless, safe driving, and student driver discounts.
  3. Annual Policy Review:

    • Regularly review insurance rates to ensure ongoing competitiveness.
    • Compare quotes before renewing bundled insurance.

In conclusion, while bundling can provide convenience and discounts, careful consideration of individual policies and periodic reviews are essential to ensure cost-effectiveness and optimal coverage.

Getting an Auto and Home Insurance Bundle | LendingTree (2024)
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