How Much Can You Actually Save?
Average bundling discounts by insurer (2026 data):
The Hidden Costs of Bundling
Beyond the headline discount, consider these factors:
How to Find the Best Bundle (Or Decide Not To)
Step-by-step strategy to maximize savings:
When Bundling Makes Sense
Bundling is ideal if:
✅ Your insurer is competitive in both auto and home in your area
✅ The bundled total is at least $100-$200/year cheaper than splitting policies
✅ You value convenience (one insurer, one renewal, one login)
✅ You have multiple vehicles or properties (larger discount)
✅ You're a low-maintenance shopper who prefers simplicity
✅ Your insurer has strong financial ratings and claims service
Example profile: Family with 2 cars, suburban home, middle-income, stable risk profile, values one-stop service—State Farm or Allstate bundle likely saves $400-$600/year with acceptable service.
When Splitting Policies Makes Sense
Unbundling is better if:
✅ Separate specialists beat the bundled price by $200+/year
✅ You're a digital-savvy shopper comfortable with multiple apps/logins
✅ One policy is significantly overpriced with your current insurer
✅ You drive very little (pay-per-mile auto) or have a high-value home (specialist needed)
✅ You're willing to re-shop every 2-3 years to chase the best rates
Example profile: Single professional, low mileage, tech-savvy, urban condo—Root auto ($850) + Lemonade home ($600) = $1,450 total vs. $1,800 GEICO bundle = $350 annual savings.
Other Insurance Bundling Options
Beyond home and auto, you can bundle:
- Auto + renters: 5-15% discount (great for apartment dwellers)
- Auto + umbrella liability: 5-10% discount + critical excess liability coverage
- Home + umbrella: Typically required by same insurer
- Auto + life insurance: Some insurers offer 5-10% discount (State Farm, Allstate)
- Multiple vehicles: 10-25% multi-car discount (often better than bundling with home)
Which bundles deliver the best value?
- 1. Auto + renters: Easy win—renters insurance is cheap ($150-$300/year), so even a 10% discount is worth it
- 2. Auto + home (if balanced): Large dollar savings if both policies are competitive
- 3. Multi-car: One of the best discounts—adding a second car often costs 40-60% less than insuring it separately
- 4. Auto + life: Marginal—life insurance is better shopped independently for best rates
Frequently Asked Questions
Yes, bundling typically saves 15-25% ($200-$600/year on average), but not always. 30% of consumers overpay by bundling with the wrong insurer. To maximize savings, compare bundled quotes from 3-5 insurers against separate policies from auto and home specialists—then choose whichever combination has the lowest total annual cost.
Average savings are $200-$600/year (15-25% discount on both policies). Exact savings depend on your premiums, insurer, and state. High-value policies (e.g., $3,000+ combined) save more in dollars, while lower premiums see smaller absolute savings even at the same percentage discount.
It depends. Bundle if the total bundled price beats separate specialists by $100-$200+ and you value convenience. Unbundle if separate quotes are $200+/year cheaper, even after losing the bundle discount. Always compare both scenarios before deciding.
Yes—bundling can lock you into higher rates over time ("loyalty tax"), create switching friction, and lead to overpaying if one policy is overpriced. Additionally, filing a claim on one bundled policy may affect rates or eligibility on the other. Re-shop every 2-3 years to avoid these traps.
State Farm, Allstate, and American Family offer up to 20-25% combined discounts and are competitive in both auto and home in most states. GEICO and Progressive partner with Homesite for home insurance bundles. Best option varies by state, so compare 3-5 insurers.