Have you ever seen those ads that say “save big by bundling home and auto insurance”? If you’ve seen those and wondered, is that true?, what does that mean?, is it the right move for me?, let’s break it down and find out if bundling is the right choice for your insurance needs
What is Bundling?
Bundling means buying more than one type of insurance policy from the same company, like auto and homeowners, or maybe renters and motorcycle insurance. Insurers love when customers stick with them for multiple products, so they offer a discount as an incentive. That’s the main idea: you get a price break for being loyal.
How Much Can You Save?
The savings will vary depending on your insurer and the types of policies you’re bundling, but discounts in the 5-25% range are most common, and home and auto is the most common bundle, so it usually comes with the biggest discount. According to a 2024 J.D. Power study, homeowners who bundled their auto and home insurance saved an average of $354 per year.
For example, if you pay $1,200/year for car insurance and $1,000/year for home insurance separately, with bundling you could pay $2,000 instead of $2,200. That’s $200 in savings each year; while that might sound like a lot, that will add up over the years, and it’s great to save money in any way you can.
Other Perks of Bundling
There’s more than just the discount, bundling can simplify your life. One company, one bill, one app; it’s much easier to manage. It can also make filing claims easier. If a storm damages your house and car, you only have to file one claim, saving you time and hassle. The Insurance Information Institute notes that in weather-related disasters, around 12% of claims involve both home and vehicle damage, so a singe point of contact is especially valuable. Lastly, bundling can help you avoid coverage gaps as working with one provider can ensure your policies are coordinated.
When Bundling Might Not Be the Best Deal
There is a catch: bundling doesn’t always save you money. Some insurers offer lower base rates without bundling, and just because you get a discount doesn’t mean the combined price is the best deal overall.
You should also consider the policy quality; you don’t want to sacrifice coverage just to save a few bucks. If you have any life changes coming up like moving, getting married, or buying a second car, that might change what kind of coverage you need, so make sure your bundle still works as your life evolves.
Tips for Smart Bundling
Shop around first: get bundling and unbundled quotes form at least 2-3 companies
Ask about extra perks: some bundles come with deductible waivers, accident forgiveness, or better customer services options
Review your coverage: make sure bundling isn’t encouraging you to over- or under-insure
Do a yearly check-in: life changes fast, and so should your coverage
Use comparison tools: Websites like Compare.com or The Zebra let you quickly check rates from multiple insurers, making it easier to see whether bundling really saves you the most.
The Bottom Line
Bundling can be a smart way to save money and streamline your insurance, but only if the numbers and coverage actually work in your favor. Don’t assume it’s the best deal just because it’s advertised that way. A little comparison shopping can go a long way
