Best Home and Auto Insurance Bundles - Home & Auto Insurance Guide | Gabi
Are you saving as much money on your home and auto insurance as you could? Unless you’re bundling your policies, you may not be. Insurance bundles could save you up to 25% a year, reduce the number of separate bills you have to pay each month, and allow you to consolidate policies under one insurer or insurance agent.
Here’s how to decide if combining home and auto insurance is right for you (and how to find the best deal):
- How to Find the Best Home and Auto Insurance Bundle
- Who Offers Insurance Bundles?
- Should You Bundle Your Home and Auto Insurance
- Getting the Best Deal
How to Find the Best Home and Auto Insurance Bundle
When it comes to finding affordable insurance, whether that means a bundle or solo policy, your first step should be to visit an insurance comparison site. By comparing several bundles and insurance quotes at once, you’ll be able to see who is offering the best rate.
First, you’ll want to make sure you’re actually getting the best deal on the individual policies. Some insurers may offer great rates on auto insurance, but higher rates on homeowners and vice versa. Start by comparing the cost of individual policies through several providers.
Next, look at the discount percentage. While you can save up to 25%, some insurers may only offer a 4% discount for the coverage you need in your area. Once you know both the cost of buying policies separately and the cost of different insurance bundles, you can compare the two to get the best deal. For example, a slightly more expensive home and auto insurance policy with a bigger bundle discount may end up being a better deal than a slightly cheaper policy with a smaller discount. Keep in mind, you can do the math yourself or let comparison sites like Gabi do the hard work for you.
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Who Offers Insurance Bundles?
Most major insurance agencies and some smaller independent firms offer home and auto bundles. For example, the following auto and homeowners insurance agencies allow you to bundle two policies:
- Liberty Mutual
- State Farm
|Provider||Avg. Annual |
|Average Discount |
|Provider||Bundling Discount According to Provider’s Site|
|Allstate||Up to 10% off auto, and up to 25% off home|
|American Family||Up to 29% off auto, and up to 20% off home|
|Farmers Insurance||Discount varies|
|Liberty Mutual||Discount varies|
|Progressive||Up to 12%|
|State Farm||Up to 17%|
|Travelers||Up to 13% off auto|
Should You Bundle Your Home and Auto Insurance
While every insurer is different, there are a few golden rules to bundling:
Bigger policies often get bigger discounts
If you own an expensive home or carry a large policy, you may get a bigger discount. On the flip side, if you’re looking for a basic homeowners policy for a moderately priced home and liability insurance for your car, you may not see big savings. Always do the math on both separate and bundled policies to make sure you’re getting the best deal.
Homeowners insurance may complicate things
If your homeowners insurance policy is expensive, requires riders, or has exclusions, you may find a better deal by opting for a separate policy with a specialized agency. For example, if you live in an area that requires flood insurance through the National Flood Insurance Program or in an area prone to wildfires, you want an insurance provider experienced in building (and handling) those policies — even if you can’t get a bundle discount.
Your history plays a part
Like any insurance policy, home and auto insurance bundles vary in price depending on your personal history. If you have a clean driving record, a good credit score, and have never filed a claim on your homeowner’s insurance, you’ll like get the best rates and biggest discounts. However, if you have a history of traffic violations or a lower credit score, the policies offered to you (and in turn, the bundles) will be pricier.
Where you live makes a difference in price
Beyond your personal history, where you live (and store your car) plays a big part in your insurance rates. For example, areas prone to natural disasters or along coastlines often carry higher insurance rates on average than areas with more stable weather.
Crime also has an impact. According to the Insurance Information Institute, higher rates of theft, vandalism, and accidents in your area will bring up average prices. Parking your car a garage or gated parking and installing security systems may net you a discount on auto insurance.
Getting the Best Deal
Finding the best home and auto bundle doesn’t have to be complicated. Take these steps to get the best price on the best insurance bundle for you:
Decide what you need: Knowing exactly how much home and auto insurance you need before you start shopping can help you narrow down the right bundle. While you don’t want to be undercovered, if you sign on for services you’ll never use, you’ll end up paying more than you should. Talk to an insurance agent if you’re not sure.
Ask about third-parties: Some insurers carry part of your bundle, while using an affiliate — or third-party provider — for your other policy. It won’t impact your savings, but you’ll have to deal with two different agencies if you need to file a claim.
Compare regularly: As your policy expires, your insurance company may raise your rates (also known as price optimization in the insurance industry). Even if you’re getting a discount now, compare your policy against others at least once a year — and ideally toward the end of your policy term — to make sure you’re getting the best deal. With Gabi, you can compare your policy against offers from competing insurance agencies. If you already have the best price, we’ll let you know. Ready to get started? Get your free quotes today.