How Bundling Your Policies Can Save You Money on Your Car Insurance

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There are many ways to save on car insurance, and one of the simplest is ‘bundling’ all of your insurance policies. Called a Multi-Policy or Multi-Line discount, large insurance companies usually offer discounts on your premiums when you buy multiple insurance policies from them. After some shopping around and accounting for all of your other discounts, bundling may just be enough to sway you toward the most affordable insurance policies in total.

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What Insurances Can You Bundle With Auto Insurance?

Companies like GEICO, State Farm, Allstate and Progressive offer lots of insurance: homeowners, renters, condo, life, boat, travel and so many more. Odds are, if it can be insured, one of them can insure it. Not every type of insurance is “bund-able” however with your auto insurance policy. In the table below you can see what types of policies can be bundled by the major car insurance companies.


Insurance Types You Can Bundle With Auto
State FarmLife, Health, Homeowners, Condo, Renters, Farm


Homeowners, Condo, Renters Mobile Home


Life, Homeowners, Condo, Renters, Umbrella


Homeowners, Condo, Renters, Mobile Home, Motorcycle, Snowmobile, Boat, Umbrella

How Good is the Discount?

Not every bundle is made equal. An Auto-Home bundle usually yields a greater discount than a Auto-Condo discount for example. There are also cases where the discount is based on when you buy your policies. Below we explore the country's four largest auto insurers and the percentage discounts you can save by insuring different assets with them.

State Farm

With State Farm, you may have a bunch of different insurance policies, but only the pairing that gets you the biggest discount is counted, i.e. you cannot combine the discounts of multiple bundles. We looked at a $1,509 State Farm auto quote from Alabama to test what the discount may look like with a few different bundled policies.

Policy #1

Policy #2Discount Off Auto PolicyNew Auto Price
AutoLife Insurance Worth Less than $125,0005%$1,434
Mobile Home Policy8%$1,388
Health Insurance Plan8%$1,388
Life Insurance Plan Worth More than $125,0008%$1,388
Renters Policy10%$1,358
Condo Policy12%$1,328
Homeowners Policy15%$1,283
Farm/Ranch Policy15%$1,283
Homeowners Policy + Umbrella Liability Policy18%$1,237

Homeowners insurance can be quite costly -- thousands of dollars every year -- so it makes sense that it comes with a higher discount than renters insurance. An Umbrella Policy gives you even more liability insurance than what your traditional policy may already call for, making it more expensive overall. It makes sense the two most expensive policies give you the best bundle discount. State Farm is also unique in being able to bundle a Farm/Ranch policy with your auto policy.


GEICO operates a bit different from State Farm in that it takes off a flat 3% discount regardless of the type of policy you bundle -- as long as it is a renters, condo, mobile home or homeowners policy. We looked at a quote from New York to show how a bundled policy would affect rates. For our sample 30 year old male driver, GEICO gave a yearly auto insurance quote of $1,546. With the 3% discount he would save $47 per year. In comparison, the same cost of policy for State Farm with a homeowners policy would actually save him $232 every year.


Allstate insurance operates similarly to State Farm in that different bundles yield different discount amounts. We looked at rates in Ohio to explore the loyalty discount at Allstate. The magnitude of the discount again corresponds to the expensiveness of the second policy. On their main website, Allstate lists the discount up to 25% off, meaning the discounts below can be higher in different states. Our sample auto quote was $1,056 per year.

Policy #1

Policy #2Discount on Auto PolicyNew Auto Price


Mobile Home5%$1,003
Renters w/ Umbrella7%$982
Mobile Home w/ Umbrella9%$961
Condo w/ Umbrella10%$950
Homeowners with or without Umbrella15%$898

Again, homeowners comes out on top since it generally is the most expensive type of insurance. A notable difference between State Farm and Allstate however is the absence of life insurance policies. If you were hoping to bundle an auto policy with your life insurance policy, State Farm would be the company to do so.


Progressive allows you to combine multiple lines at once: homeowners, mobile homes, snowmobiles, boats, etc. They break down those policies into three different groups. One group consists of all types of "dwelling" insurances (homeowner, renters, condo), the second group contains secondary vehicles (motor home, snow mobile, boat), while the final group is umbrella policies. The magnitude of the discount depends on when you purchased those secondary policies as well. We looked at quotes from Rhode Island and used a $1,791 yearly premium as an example.

Policy Situation

Discount on Auto PolicyNew Auto Price

Homeowners insurance, w/ secondary vehicle and umbrella, purchased w/ auto policy (maximum discount)


Homeowners insurance w/o secondary vehicle or umbrella, purchased w/ auto policy


Homeowners w/ secondary vehicle, and umbrella, purchased when renewing a Progressive Auto Policy


Homeowners w/o secondary vehicle and umbrella, purchased when renewing a Progressive Auto Policy


Progressive clearly tries to incentivize customers to buy everything at once to see the largest discount. If you purchased an auto policy, along with homeowners, motorcycle and an umbrella within the initial term of your Progressive auto policy, then you would get 17% off the yearly premium. Many people may fall into the last category: having a Progressive auto policy for some time and then considering moving your homeowners policy to Progressive as well. If you do not have a secondary vehicle or umbrella policy to also insure, the discount will be a relatively paltry 5%.

Having a homeowners policy is also important. If your dwelling insurance is anything but homeowners, i.e. renters or condo, then expect the discount to drop in half. The 17% discount becomes 9% if you have a renters policy. Without any sort of dwelling insurance, as in, you only bundle your auto policy with a secondary vehicle like a motorcycle or an umbrella policy, the very most you can expect as a discount is 5%.

Discounts on the Secondary Policy

Also do not forget that the secondary policy, like your homeowners insurance, will also receive a discount. Allstate claims up to 35% on their website. At State Farm we saw a 15% discount. We discuss more at length about bundling homeowners policies here. Remember that homeowners policies are usually more expensive than what you will pay for auto insurance so a sizeable discount on that premium can make bundling even more worthwhile.

Final Thoughts

The golden rule of auto insurance, and really all types of insurance, is to shop around. If you are dedicated to saving money on your yearly premium, then you need to obtain quotes from every insurer in your area. Take inventory of everything you want insured and see what is the most affordable option. There's no point in switching to Allstate to save 15% if their auto insurance policy is 20% more expensive than your current. There is probably little point of undergoing the effort to bundle with GEICO since they just offer a 3% discount on your auto policy. At the end of the day, bundling can be a great way to save so long as one company is offering you the strongest prices of anyone else.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

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