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Should You Bundle Insurance? Facts on Bundling and Saving

The term “bundling,” when used in reference to insurance, simply means purchasing multiple insurance policies from the same provider such as homeowners insurance and auto insurance. Bundling not only simplifies the management of your policies, it increases the ease of filing claims and can also result in substantial discounts as high as 25%. When shopping around, be sure to consider factors like overall cost, customer satisfaction reviews and additional discounts.

Whether you’re looking for ways to save money on coverage or want to learn more about bundling, keep reading and get an in-depth look at what bundling your insurance can do for you.

Insurance Bundles by Company

Each provider has a different discount for bundling insurance. Below is a table that breaks down the discounts of some of the most popular insurance companies in the country.

Company

Discount

Allstate

Up to 25%

American Family

Up to 23%

Farmers insurance

An average of 20%

Liberty Mutual

Up to 13%

Nationwide

Up to 20%

Travelers

Up to 10% on auto insurance

USAA*

Up to 10%

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

Allstate

Allstate offers the largest bundling discount out of all the companies on our list, with savings of  up to 25%. Allstate is a popular insurance provider and is offered in all 50 states and the District of Columbia. There are over 19,000 independent agents across the United States, making it easy to find an agent in your area that can help you bundle your plans.

American Family

American Family offers bundling discounts as high as 23%. Unfortunately, they currently only offer coverage in the following 19 states:

  • Arizona
  • Colorado
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Minnesota
  • Missouri
  • Nebraska
  • Nevada
  • North Dakota
  • Ohio
  • Oregon
  • South Dakota
  • Utah
  • Washington
  • Wisconsin

If you live in one of these states, you can speak with one of their 2,400 agents to get your plans bundled.

Farmers Insurance

Farmers Insurance offers bundling discounts that average savings of 20% for customers in all 50 states. With 48,000 agents nationwide, you can get answers to any insurance questions you have and get your plans bundled.

Liberty Mutual

Liberty Mutual offers bundling discounts of up to 13%. The company provides coverage in most states, except Alaska, Washington D.C., Iowa, Kansas, Nebraska, North Dakota, South Dakota and Wyoming. Liberty Mutual has 2,200 exclusive agents who can help get your plans bundled.

Nationwide

Nationwide has bundling discounts of up to 20%. Coverage is available in most states. However, those who live in Florida, Louisiana, Massachusetts, New Jersey or New Mexico may not be able to get home or auto insurance through Nationwide. The company also uses 11,000 independent agents who will work with you and bundle your insurance plans.

Travelers

Travelers’ bundling discount can afford customers with savings of up to 10% on their auto insurance. Travelers provides coverage in all 50 states, Washington D.C. and Puerto Rico, making it one of the more accessible insurance companies for Americans. With around 13,500 independent agents and brokers, you can easily get your plans bundled.

USAA

USAA offers up to 10% savings for bundling your insurance. They also offer some of the lowest prices with some of the highest ratings in customer satisfaction. USAA only provides coverage for active-duty members of the U.S. military, veterans and their family members and is available in all 50 states.

Each insurance provider has a different discount for bundling insurance.

Who Has the Best Insurance Bundle?

Based on our research, Allstate offers the largest discounts for customers with savings of up to 25%. While USAA only offers up to 10% savings, they offer lower rates overall and have much higher ratings in customer satisfaction. It is important to consider each company overall when deciding who has the best bundle to meet your needs. We used AM Best, JD Power and Associates and US News to compare some of the most popular insurance companies for auto insurance and homeowners insurance.

Below is a table showing the ratings pulled from AM Best and J.D. Power and Associates.

Company

AM Best (Financial Strength)

J.D. Power and Associates (Customer Satisfaction)

Allstate

A+ (superior)

  • Auto - Below average
  • Home - Above average

American Family

A (excellent)

  • Auto - Below average
  • Home - Above average

Farmers Insurance

A- (excellent)

  • Auto - Below average
  • Home - Below average

Liberty Mutual

A (excellent)

  • Auto - Below average
  • Home - Below average

Nationwide

A+ (superior)

  • Auto - Below average
  • Home - Below average

Travelers

A++ (superior)

  • Auto - Below average
  • Home - Below average

USAA*

A++ (superior)

  • Auto - Above average
  • Home - Above average

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

US News and World Report took data and feedback from policyholders, specifically honing in on claims handling, customer loyalty, customer service and policy renewal.

2022 Top Rated Car Insurance Companies According to US News

Company

US News Rating

Average Annual Rate

USAA

4.3

$1,000

State Farm

4.2

$1,267

Farmers

4.1

$1,917

Nationwide

4.1

$1,327

Allstate

4.0

$2,047

Travelers

4.0

$1,371

American Family

3.7

$1,371

Why Bundle Insurance?

Pros of bundling insurance coverage

  • Cost savings - The potential savings from bundling your insurance plans can be as high as 25%, depending on the insurance provider and the types of coverage you bundle.
  • Convenience - Bundling your plans makes it much easier to handle your policies. The reason is all your policies are with one insurance company, making it easier for you to manage while eliminating the hassle of having to speak with multiple providers.

Cons of bundling insurance coverage

  • Saving money isn’t a guarantee: It’s possible that you could save more money by having insurance policies from two separate companies. For instance, one insurance company may offer a very inexpensive home insurance policy. They may also provide auto insurance coverage, but at a much higher rate than other providers. Even with a bundling discount, you could end up paying more than what you would if you bought a separate and cheaper auto policy from elsewhere.
  • Quality isn’t guaranteed: It’s possible that an insurance company may offer great rates and high discounts but have terrible customer service and a lengthy claims process. If a provider has a poor track record of handling a certain type of claim, look at seeking coverage elsewhere.

Tips For Bundling Your Insurance

Make sure to ask about other discounts

Insurance companies offer a wide array of discounts outside of bundling insurance plans. Always ask your agent which discounts can be combined to create the highest savings. Below is a list of some of the discounts you can ask about next time you speak with your provider. The list is divided between homeowners insurance discounts and auto insurance discounts.

Homeowners

Auto

Claims free discount

Anti-theft discount

Fire mitigation/prevention discount

Automatic payment discount

Gated community discount

Defensive driving discount

HOA discount

Distant student discount

Home improvement discount

Good driving discount

Loyalty discount

Good student discount

Marriage discount

Low-mileage discount

Military/Veteran discount

Loyalty discount

Monitored burglar system discount

Military/Veteran discount

New home discount

New vehicle discount

Non-smoker discount

Organizational discount

Paperless discount

Paperless discount

Pay-in-full discount

Pay-in-full discount

 

Profession-based discount

 

Telematic discount

Shop around for insurance discounts

Always do your homework to see who will offer the best bundling discounts. The percentage of discount will vary depending on the company and what you choose to bundle. And make sure you understand all the additional discounts that you may qualify for as some insurance companies may not offer the same discounts.

Focus on total costs

Make sure to factor in any changes in deductibles (what you pay before your insurance will cover the remaining repair costs) with a bundled policy. Weigh the potential benefits of having lower premiums versus a lower deductible. A higher deductible often means your premium will be lower, but if you’re someone who is prone to risky behavior, it may be better for you to get a lower deductible so that your out-of-pocket costs will be much less when you file a claim.

Bundling your insurance can save you up to 25%, depending on the insurance provider and the types of coverage you bundle.

Is it Always Cheap To Bundle Insurance?

It is usually cheaper to bundle your insurance plans. Discounts can range from 5% to 25% depending on the company your insurance is through and what policies are being bundled. Homeowners insurance usually has the most substantial discount. However, it should be noted that bundling your insurance is not always going to result in saving money. You could potentially save more money by having separate plans from different carriers. One insurance company may offer low pricing for an auto insurance policy but higher pricing on homeowners insurance. In this case, the bundling discount may not be enough to result in any savings.

Can You Bundle Renters With Auto Insurance?

Most major insurance providers allow you to bundle renters insurance and car insurance. Below is a list of those insurance companies:

  • Allstate
  • American Family
  • Farmers
  • Liberty Mutual
  • Mercury
  • Nationwide
  • State Farm
  • The Hartford/AARP
  • Travelers
  • USAA

Bundling FAQs

What does bundling your insurance mean?

Bundling your insurance refers to purchasing different insurance plans with the same carrier such as homeowners insurance and auto insurance. There can be sizable discounts of up to 25% when you bundle.

Why do insurance companies want you to bundle policies?

Bundling insurance potentially means more business for the insurance company and the possibility of higher retention of customers. People will leave a current provider for a new one because of what they stand to save through discounts.

Which insurance company offers the most discounts?

According to our research, Allstate offers the highest discount of all other insurance companies. Ask an agent for any additional discounts you may qualify for so you can save even more on your insurance, and review customer satisfaction ratings so you can go with the provider that works best for you.

Key Takeaways

  1. Consider bundling your insurance for the savings and convenience. You stand to save anywhere between 5% and 25% on your insurance if you bundle your policies. 
  2. A cheaper overall cost not guaranteed with bundling. You may get cheaper rates by getting coverage from two different companies.
  3. Shop around with different insurance companies so you can get the best discounts.

Get the savings you want with the insurance you need. Enter your zip code below or call 855.214.2291 to receive your free homeowners, auto, or renters insurance quotes.

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