Should You Bundle Home and Auto?

Jessica Nguyen March 12, 2021

If you bundle insurance products like home and auto, you may save hundreds of dollars annually. Most major insurance companies offer bundling policies at a discount if you choose to purchase multiple types of insurance. Also, when you bundle home and auto insurance, the process of paying bills becomes more convenient.

How much you save depends on the insurance carrier, but consumers save an average of 28% on premiums when they bundle home and auto insurance. Some customers save up to $800 a year or more when they bundle home and auto.

A home and a car are probably two of the most valuable assets you can own so comparison shopping with a trusted source can help you customize your coverages and determine which company will offer you the most savings. You may even want to add on an umbrella policy for excess coverage. SmartFinancial partners with over 200 insurers so that you can find which bundle works best with your budget.

Can You Only Bundle Home and Auto Insurance?

Major insurance companies offer more types of bundles other than home and auto. You may also have the benefit of paying a single deductible for multiple policies. You can basically combine home or auto insurance with almost any other type of insurance to create a bundle but some other common bundles are:

  • Auto and Home Bundle: Auto and home insurance is one of the best pairings because most people own both so it's really easy to find. You'll need to insure both anyway so you might as well save some money doing it.

  • Auto and Renters Bundle: If you bundle auto and renters insurance, you may be eligible for a discount.

  • Auto and Condo Bundle: This also applies to condos! You can bundle condo and auto insurance for a discount and convenience too.

  • Auto, Home and Life Bundle: Life insurance works differently than property insurance and can be provided by a different company but with help from our experts, it can be done.

  • Auto and RV Bundle: Do you have an RV? You can save on car insurance by bundling it with an RV policy.

  • Multi-Car Bundle: If you insure more than one vehicle, you can save on auto insurance.

  • Home and Commercial Bundle: If you are running a business out of your home or you have a home and also own a business, you may save hundreds of dollars if you bundle home and commercial insurance.

It's a good idea to use SmartFinancial to shop around for the type of insurance you're looking to add. You can then discuss with the agent which insurance products you want to bundle and we will match you with an insurer who is able to give you the best rates and options available for your policies.

What Are the Benefits if I Bundle Home and Auto Insurance?

The bundling discount is usually the main reason most choose to bundle home and auto insurance, and you can save up to 25% in premiums when you do so. If you have multiple policies with one insurance company, they may allow you to have one deductible for multiple policies. Let's say a storm strikes and your home and your car are damaged. With one deductible, you'd save hundreds of dollars after filing both claims.

Aside from saving money, there are other reasons to bundle home and auto insurance. It's more time efficient and convenient to work with one insurer. For instance:

  • Bundling saves you the extra work of having to pay multiple insurance bills with different providers. When you bundle home and auto, your premiums are usually combined in a single bill.

  • Most insurers offer an app to make it easier to manage your accounts digitally. When you bundle home and auto, you'll only need to download one app, have one username and password, and then you'll be able to check all your policies, make claims and pay premiums all at once.

  • If you are a high-risk driver or have a high-risk home bundling home and auto may incentivize an insurance company to insure you despite the risks.

  • If you file too many claims, your insurer may drop you, but they are less likely to do so if you bundle home and auto.

With the right agent, if you bundle home and auto and as many of your insurance products as you can, you will have an ally helping you adjust your policies based on how your situation changes over the years. SmartFinancial can help you find the right agent to bundle home and auto insurance with, so you can just relax and pay lower rates.

What's the Down Side if I Bundle Home and Auto Insurance?

Every driver profile is different so sometimes bundling multiple policies may not work for everyone. For instance, you may sometimes save more money by insuring your assets separately. One good way to find out if this is the case is to start a separate quote for auto insurance and a quote for home insurance. This way, you'll see what the best rates are for each one, you'll find out what it would cost you to bundle with both insurers. You can then compare and see what works best for you.

Make sure to compare policies with the same coverages when comparing different insurance companies so you're not comparing apples to oranges.

Here are a few common reasons customers choose not to bundle their policies:

  • Not Always Cheaper: If you have traffic violations, poor credit or live in a state with high insurance rates, it may be cheaper to shop for separate policies than to bundle home and auto.

  • Increasing Premiums: Some companies will try to build loyalty by offering you discounts when you bundle, but once you do, you'll be less likely to shop around for a new insurer. You have to be vigilant so the insurance company doesn't slowly raise your premiums.

  • Third-Party Vendors: Some "bundled" policies aren't really bundled; this is known as fake bundling. For example, an insurer may offer you a home and auto bundle discount, but your auto insurers may set you up with a partner company for your home insurance. This denies you the convenience of managing your bills in one place (and under one app).

Do I Have to Bundle Home and Auto Insurance Right Away?

No, you can buy home or auto insurance first and then add other policies at any point. Once you bundle home and auto, the discount is applied immediately. There's no expiration date on qualifying for a bundled home and auto insurance discount, but the ideal time to bundle is when you're purchasing a new home or a new car so that you can reap the benefits as soon as possible.

Combine Auto and Home Policies and Save!

Can I Cancel a Policy I Bundle Home and Auto?

Yes, you can cancel one of your bundled home and auto policies or any product that is part of a bundle. However, keep in mind that you may lose your discount if you no longer bundle home and auto insurance.

We recommend that you watch out for cancellation fees. Big insurance companies may not have cancellation fees but companies like Mercury or Esurance will charge a fee for canceling before your policy expires.

It is of the utmost importance to pay attention to lapses in coverage. When you cancel your plan with your current company, you should already have another policy in place. Otherwise, your rate will increase significantly when you try to buy a policy again, even if the lapse was for less than 30 days. That's why it's best to give your insurance company/companies a written notice at least 30 days before you cancel. This will ensure that you won't get billed too.

Which Insurers Have the Best Home and Auto Bundle Deals


Home and Auto Bundling Discount Rate

Home and Auto Without Bundling Discount

Home and Auto With Bundling Discount

Savings With Bundling Discount


10% car and 25% home




American Family

29% on auto and 20% on home



















Liberty Mutual




















State Farm















How to Bundle Home and Auto Insurance

When you look at the prices you are currently paying for your different insurances, there comes a moment where you decide you either want to shop around for better prices, you're okay with what you're currently paying, or you're on the fence. And if you're thinking of looking for better bundles, you can either spend hours shopping each carrier individually or use SmartFinancial to help you generate multiple home and auto insurance bundle quotes simultaneously.

Each policy will spell out what's covered and what's excluded on the declarations page of your policy jacket. Inclusions and exclusions vary from company to company so it's important to read this information.

Understanding which coverages you need and which are available to buy is very important when you bundle. You don't want to bundle an inferior product just to save money, and you also don't want to be underinsured. Reviewing the declarations pages is where you should look for errors or gaps and to double check that you have the right coverage or to add/remove any additional coverages.

What Should I Know About Home Insurance

All mortgage companies require borrowers to have homeowners insurance. Many landlords also require tenants to instead have renter's insurance. Homeowners insurance typically helps cover:

  • Dwelling and other structures on property: Dwelling protection insures the structure of your home (foundation, walls, roofs) and can also insure other structures that are attached to your home, such as a garage or a deck, against certain risks.

  • Personal property: Home insurance provides coverage by helping you pay or replace your personal belongings in the case of a robbery, a fire, a flood, etc. and many insurers offer extended coverage for items such as jewelry, watches and furs that have values above your personal property coverage limits.

  • Liability for injuries or damage to someone else's property: A typical homeowners insurance policy provides liability coverage when someone not living with you is injured while on your property, and bodily injury liability coverage to help pay for legal expenses or the other person's medical bills if you are found at fault. Companies also have the option for you to increase your liability coverage limits by adding a personal umbrella policy.

There are three levels of homeowner's coverage:

  • Actual cash value covers the cost of your house and the value of your belongings (how much the items are currently worth, not how much you paid for them).

  • Replacement cost covers the actual cash value of your home and possessions without the deduction for depreciation. This allows you to repair or rebuild your home up to the original value.

  • Guaranteed replacement cost is the most comprehensive policy. It pays for whatever it costs to repair or rebuild your home (even if it's more than your policy limit but there is usually a ceiling of 20-25% you're allowed to go over).

What Should I Know About Auto Insurance?

Auto insurance is required in every stay, and drivers are required to have at least the minimum legal requirement in case of an accident.

An auto insurance policy can protect you against damaging financial losses if you're ever involved in an accident. The six major types of car insurance coverage are:

  • Bodily Injury Liability Insurance helps if you are found at-fault in an auto-accident and are required to cover the medical expenses for the injured parties.

  • Property Damage Liability Insurance helps if you are found at-fault in an auto-accident and are required to pay for repairs to the other driver's vehicle or property you damaged.

  • Medial Payments or Personal Injury Protection Insurance helps pay for your medical expenses or the medical expenses of whoever else was in your car at the time. This type of insurance also helps cover the cost in lost wages or survivor benefits if you or your passenger is injured or killed.

  • Collision Insurance helps pay for damage to someone else's vehicle or property following an accident.

  • Comprehensive Insurance reimburses you for loss, theft, or damage to your vehicle caused by something other than a collision, such as fire, hitting an animal, theft, vandalism, etc.

  • Underinsured/Uninsured Motorist Insurance protects you if you're involved in an accident where the driver who's at fault doesn't have insurance or has insufficient insurance.

Shop for a Bundle Home and Auto Insurance Rate Annually

Rates change and so do your circumstances. You may become eligible for a lower price next year, so it's a good idea to keep SmartFinancial top of mind when you're ready for another search. You'll be especially wise to shop new rates if you have renovated your house, added extras to your car, if your credit improved or if you started a new job.

Get a Free Auto Insurance Quote Online Now.