Your home and car are two of your most valuable assets, so having the best insurance for both is important. Luckily, most major insurance companies let you bundle both policies under one roof for a convenient discount. In this article we will discuss how you can and whether you should bundle the two insurance policies, and where you may find the best bundling discounts.
The Best Home and Auto Insurance Bundle
The best auto insurance and home insurance bundle is the one that gets you a great discount, on top of a fair price for both policies. Just because one company offers cheap car insurance, does not mean they will also offer affordable rates for homeowners insurance and vice versa. Here are what rates and bundling discounts at some of the largest insurers look like for our sample driver and homeowner.
| Company | Average Yearly Car Insurance Rate | Average Yearly Homeowners Insurance Rate | Discount* | Total |
|---|---|---|---|---|
| Nationwide | $1,404 | $1,143 | 4% | $2,445 |
| Farmers | $1,249 | $1,662 | 10% | $2,620 |
|
Progressive | $1,241 | $1,649 | 5% | $2,746 |
| State Farm | $1,372 | $1,681 | 10% | $2,748 |
| Allstate | $1,718 | $2,494 | 5% | $4,001 |
| Liberty Mutual | $2,360 | $2,494 | 3% | $4,708 |
*Discount may vary depending on circumstances and may not be available in every state
The rates for auto insurance were for a 30 year old male, while the homeowners rates were for protecting a $200,000 home. These are rough national averages for one specific person, so rates will fluctuate depending on where you live. Homeowners insurance in Florida tends to be expensive in most parts of the state, but car insurance tends to be cheaper in the northern parts for example.
You can compare insurance quotes for your area by putting in your zip code up top. These aren't the only companies you can bundle with - just a small sample of the largest ones. Every major insurance company has bundling policies and discounts. The following auto and home insurance companies allow you to bundle the two policies:
- GEICO
- Allstate
- Esurance
- Erie Insurance
- The Hartford/AARP
- Mercury
- State Farm
- Farmers
- Nationwide
- American Family
- Travelers
- Auto Owners
- Progressive
- USAA
- Liberty Mutual
- MetLife
- Amica
- State Auto
Should You Bundle Your Home and Car Insurance?
You should bundle your homeowners and auto policies if you:
- Find the combination of policies cheaper than what you currently pay
- Cannot find a cheaper combination at separate companies
- Are trying to insure a risky home
- Want a stronger relationship with insurance company
You do not want to bundle if the price of the two policies will be more expensive than separate policies at two companies. If bundling with State Farm costs you $1,000 for auto, $1,000 for home, for a total of $1,800 after the discount, but you can find a home policy for $700 at Progressive, you should go with separate policies at State Farm for auto and Progressive for home if your goal is to save on insurance costs. There are a few reasons beyond price however that may make bundling more beneficial.
It may be a good idea to pay the higher price for the bundle if you are having trouble finding a company to insure your high-risk home. Having an auto policy with a company that also sells homeowners insurance may give that company more incentive to insure your home--despite the risks. Having multiple policies with one insurer may make them less likely to drop you. There is also a convenience factor by being able to pay for both policies to the same company. Lastly, according to the 2016 J.D. Power survey, customers with bundled policies tended to be more satisfied with their company than those who didn't have a policy. With all that being said, there are still a few factors you should be mindful of that may end up making a bundle more expensive in the long run.
If your bundle requires you to move to another company, we recommend you watch out for cancellation fees and potential lapses in coverage. The majority of big insurance companies do not charge a cancellation fee, but we've fund that some like Esurance and Mercury will charge a fee for canceling before your policy is up. Having a lapse in your car insurance is another thing to be wary of, as it may be quite costly. We've discovered that your rates can be 8% more expensive when you go to buy a policy again, even if the lapse was for less than 30 days. They can be a full 29% more expensive when the lapse has been longer than 30 days.
How to Bundle Your Auto Insurance and Home Insurance
You can bundle the two policies when you go to complete a quote for either type of insurance. For example, usually at the end of the auto insurance quote process, your insurer will ask if you wish to add your home for a homeowners policy as well.
Most people will likely already have a policy for the car with one company, and their home with another. This is the trickiest part when it comes to bundling. Following the procedure ensures you won't have a lapse in any coverage, or pay any cancellation fees.
How to Properly Cancel Your Insurance and Bundle With Another Company
We recommend you give your car or homeowners insurance company at least 30 days written notice of your intention to cancel their service. By giving your company that heads up, you will ensure they will stop billing you by the time the 30 days is up, and you also eliminate any confusion of when you should have another insurance policy in place. Haphazardly canceling an insurance policy can leave you with a gap, which as we found with car insurance, can be quite costly--even if it's for less than 30 days. When you tell your insurance company your intention to cancel, you should already have another company in place which you want to bundle your policies with. You can set the start date for the new (or both) policies the day your insurance ends with the old company.