Can Bundling Home and Auto Insurance Really Save You Money?

If you watch TV, you have seen the commercials: "Bundle home and auto and save!" But is it really that simple? Or is it just a marketing gimmick to get you to buy more products?

The short answer is: Yes, it usually saves you money. But there are specific situations where you might actually be better off splitting them up. Here is the insider guide to bundling.

How the Discount Works

Insurers want to be your "sole provider." If they handle both your car and your house, you are less likely to switch to a competitor because it is a hassle to move two policies.

To reward this loyalty, they offer a Multi-Policy Discount.

• Standard Discount: 10% to 15%
• Aggressive Discount: Up to 25% with some carriers

The Math of Bundling

Savings: $540 per year

When You SHOULD NOT Bundle

Bundling isn't always the cheapest option. Here are the exceptions:

1. You Have a Bad Driving Record

Some insurance companies are great for homeowners (low rates) but terrible for high-risk drivers (drivers with DUIs or multiple accidents).

If your bundled auto rate is sky-high, the 15% discount won't make up for the inflated base price. You might save more by getting a cheap, high-risk auto policy from a specialty carrier and keeping your home insurance separate.

2. Your Home is High-Risk (Coastal/Brushfire)

Major national carriers often refuse to insure homes in hurricane or wildfire zones. You might be forced to use state-run pool insurance (like FAIR plans) or specialty carriers that don't even offer auto insurance, making bundling impossible.

Convenience Factor

Beyond money, bundling offers simplicity:

• One bill to pay
• One app to manage policies
• One agent to call for claims
• Single Deductible: Some carriers offer a "single deductible" feature. If a storm damages both your car and your house, you only pay one deductible instead of two.

Conclusion

For 80% of homeowners, bundling is a no-brainer. It is the easiest way to save hundreds of dollars with zero effort. But always do the math first—get quotes for the bundle, and get quotes for separate policies to be sure.

Frequently Asked Questions