Save Up to 29% by Bundling Auto and Renters Insurance

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Renters can save up to 29% on their policy premiums when they purchase their renters and auto insurance from the same provider. Commonly called a bundling or multi-policy discount, most national insurance carriers will automatically apply it if you qualify. Keep reading to see how bundle discounts work and which carriers offer the highest discounts.

What Does it Mean To Bundle Auto and Renters Insurance? How Does It Work?

Bundling auto and renters insurance means purchasing both policies from the same carrier to qualify for a discount on your policy premium. Discounts are generally applied to your insurance policy automatically. When you apply for coverage online or by speaking with an agent, either for renters or auto, you are commonly asked if you already have another policy with the company. If you do, you’ll receive the bundling discount. If you are not asked, let the agent know and ask for the discount.

Bundling your auto and renters coverage can net you a discount as high as 29% depending on the insurance company. Based on the average cost of auto and renters insurance, that equates to savings of $38.11 per month ($457.32 per year).

Methodology: To calculate the above savings, we applied a 29% discount — the highest bundling discount found among insurance carriers — toward the average costs of renters and auto insurance provided by the Insurance Information Institute and AAA.

What Are the Benefits of Bundling Auto and Renters?

The greatest advantages of bundling auto and renters insurance are potential savings and convenience. However, there are drawbacks worth noting, as well. We’ve highlighted the pros and cons of bundling below:

Bundling Pros

Bundling Cons

Potentially save up to 29% on auto and renters insurance

It may cost more to bundle policies than to purchase each from different carriers

Policy management is more convenient when both policies are under a single carrier

Bundling may save you money but at the sacrifice of service quality

Ideally, bundling your coverage will save you money overall. Housing both policies under the same policy may make it easier to file claims and manage your bills, as well.

However, bundling doesn’t guarantee savings or quality. Sometimes, it costs less if you insure your car and apartment under separate carriers. That’s why it’s critical to compare quotes with a bundling discount applied before switching carriers.

While price is important, don’t forget about customer service. Switching insurance companies to qualify for a bundle discount may save you money but the new carrier may have poor overall customer satisfaction and a cumbersome claims process. Before switching carriers, look at their customer reviews and business ratings. These can help you make an informed decision before switching either or both of your policy carriers.

Bundling auto and renters insurance means purchasing both policies from the same carrier to qualify for a discount.

Which Companies Offer Auto and Renters Insurance Bundles?

American Family offers the highest auto and renters bundling discount (29%). Bundling discounts ranging from 5% to 20% are available from other major insurance carriers, as well.


Renters + Auto Discount

Homeowners + Auto Discount

American Family

Up to 29%

Up to 29%





Up to 10%


Up to 10%

Up to 10%

The Hartford/AARP

Up to 5%

Up to 5%

State Farm

Up to $965

Up to $722




Up to 25%

Liberty Mutual


*USAA is only available for active military, veterans and their families.

Bundling discounts are more common with larger insurance companies such as American Family, Farmers, Travelers and State Farm. Smaller, regional companies may still offer bundling discounts, but they may not be as common. You may, however, save more money by buying separately from these carriers. Do the math when you compare quotes.

You can bundle other types of policies, too. Here are some other bundling opportunities your insurance carrier may offer:

  • Auto + home insurance
  • Auto + home + life insurance
  • Auto + renters insurance
  • Boat + auto insurance
  • Auto + commercial insurance
  • Motorcycle + renters insurance
  • Motorcycle + auto insurance
  • Multi-car (insuring multiple vehicles under the same policy)
Bundle Auto and Renters Insurance Today and Save!

How To Bundle Your Auto and Renters Insurance Policies

If both your auto and renters insurance policies are insured by the same company, you should automatically see the bundle discount applied toward your policy. If not, your carrier may not offer it or you may need to speak with an agent to apply it for you.

If your auto and renters insurance policies are under two different carriers, the steps for getting a bundle discount can change slightly depending on whether you’re sticking with one of your existing insurance carriers or if you’re switching to a new company altogether.

You’re Insured by Two Different Companies

You may have your renters and auto policies issued through two different companies. If you want to move one policy from one of your carriers to your other one, research which offers the best deal. Consider calling an insurance agent from each company to quote you on your overall cost after bundling.

Most major carriers will have the discount percentage listed on their website — we’ve listed a few above. However, consumers should note that discounts can sometimes be a range and can vary by location.

The greatest advantages of bundling auto and renters insurance are potential savings and convenience.

You Want To Switch to a Completely New Company

Switching to a completely new carrier that can offer a higher bundling discount is another option. This would require you to return to the insurance marketplace and shop around with insurance carriers in your area. The potential savings are often worth it.

Don’t forget about customer service. Your current provider may have great deals on coverage but fall short when it comes to customer satisfaction and claims handling. Find an insurance company that will work with you at the right price by comparing quotes.

Warning: Before canceling an existing policy, make sure your new policy’s effective start date will not create a lapse in coverage.

Bundling FAQs

Can you bundle home and auto?

You can bundle home and auto insurance coverage, saving you as much as 29% on coverage, depending on your provider.

Do you save money when you bundle insurance?

Yes, you will usually save money when you bundle insurance. However, you should still shop around because it can sometimes cost less to buy different policies from separate carriers.

Do all insurance companies offer bundling options?

Most national insurance carriers offer bundling discounts (also called multi-policy discounts), including American Family, Farmers, Travelers and State Farm.

Why do insurance companies want you to bundle policies?

Insurance carriers offer to bundle policies to attract new customers and retain existing policyholders. Price is an important deciding factor among consumers and they will usually switch carriers if it will save them money.

Which insurance company offers the most discounts?

SmartFinancial’s analysis shows that American Family offers the highest bundle discount (29%) among national insurance carriers, followed by Farmers (20%) and Travelers (10%).

Key Takeaways

  • Purchasing auto and renters insurance from the same insurance carrier is one way to bundle policies for a discount.
  • Bundling renters and auto insurance can make it easier to file claims and manage your bills.
  • Most major insurance companies offer bundling discounts, including American Family, Farmers, Nationwide and Travelers.

If you need auto insurance, renters insurance or if you’re seeking a new carrier, SmartFinancial can help get the protection you need. Enter your zip code below or call 855.214.2291 to receive free auto or renters insurance quotes from agents in your area offering the lowest rates.

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