Bundling Home and Auto Insurance: How Much Can You Really Save?
2026-04-13 · 6 min read · Savings
Bundling: The Most Popular Insurance Discount
Combining your home (or renters) and auto insurance with the same company is the most widely used insurance discount in America. According to the Insurance Information Institute, approximately 73% of homeowners bundle their policies. The reason is simple: bundling saves 10-25% on auto insurance and 5-15% on homeowners insurance, with the exact savings depending on the insurer and state.
Average Savings by Insurer
Bundle discount percentages vary significantly by carrier (2025 data):
- State Farm: 15-20% on auto, 10-15% on home
- Allstate: 10-15% on auto, 10% on home
- GEICO + homeowner partner: 5-15% on auto (GEICO uses partner companies for home insurance)
- Progressive + home partner: 5-12% on auto
- Farmers: 10-20% on auto, 5-10% on home
- USAA: 10-15% on auto, 5-10% on home
- Erie Insurance: 15-25% on auto (among the highest bundle discounts)
In dollar terms, bundling saves the average household $300-$700 per year across both policies combined.
Renters Insurance Bundles
Even if you do not own a home, bundling renters insurance with auto insurance provides savings:
- Renters insurance cost: $15-$30/month ($180-$360/year)
- Auto discount from bundling: 5-15% ($100-$300/year savings)
- Net cost: Often close to zero or even a net savings after the auto discount
In many cases, adding a renters policy actually reduces your total insurance spend because the auto discount exceeds the renters premium. This is one of the best-kept secrets in insurance.
When Bundling Is NOT Worth It
Bundling is not always the cheapest option. You should compare bundled versus separate policies when:
- One insurer is very cheap for auto but expensive for home: Separate policies from different companies can sometimes save more
- You have a niche home insurance need: Flood-prone areas, high-value homes, or specialty properties may need specialized home insurers
- Your current insurer has raised rates significantly: Loyalty does not always equal savings — re-quote every 1-2 years
- You qualify for unique discounts elsewhere: Military (USAA), federal employees (GEICO), or group affiliations may offer better standalone rates
The rule of thumb: always compare the total cost of bundled policies versus the cheapest individual policies. Do not assume bundling wins.
How to Bundle Effectively
- Get bundled quotes from at least 3 carriers that write both home and auto in your state
- Also get standalone quotes for each policy separately from 3+ additional carriers
- Compare the total cost: Add the standalone quotes together versus the bundled price
- Consider convenience: Bundling means one company, one login, one phone number for all claims — worth a small premium for some people
- Re-evaluate at every renewal: Pricing changes annually
Additional Bundle Combinations
Beyond home + auto, many insurers offer discounts for adding:
- Umbrella insurance: Additional 5-10% off when adding an umbrella policy
- Boat/RV/motorcycle: 5-15% per additional vehicle/toy
- Life insurance: 5-10% discount on auto when adding a life policy
Each additional policy increases your bundle discount. Check available bundles on our company comparison page.
Frequently Asked Questions
- How much do you save by bundling home and auto insurance?
- Bundling typically saves 10-25% on your auto premium and 5-15% on your home premium. In dollar terms, the average household saves $300-$700 per year by bundling. The exact savings vary by insurer — Erie Insurance offers among the highest bundle discounts (15-25% on auto), while GEICO offers 5-15%.
- Is it always cheaper to bundle home and auto insurance?
- Not always. In some cases, buying the cheapest standalone auto policy from one company and the cheapest standalone home policy from another saves more than bundling. Always compare total costs: bundled price from 3+ carriers versus the sum of the cheapest separate policies. Re-evaluate at each renewal since pricing changes annually.
- Can you bundle renters insurance with car insurance?
- Yes, and it can be surprisingly cost-effective. Renters insurance costs $15-$30/month, while the bundling discount on auto is typically 5-15% ($100-$300/year). In many cases, the auto discount nearly offsets or exceeds the renters premium, making it close to free protection for your belongings.
- Do you have to bundle with the same company?
- To receive the bundling discount, both policies must be with the same company (or its affiliated partners). Some insurers like GEICO and Progressive do not write home insurance directly — they partner with home insurers, and you still receive the bundle discount through their partner programs.
The CarInsurancePeek editorial team aggregates and verifies car insurance rate data from NAIC & State DOI. Every statistic is cross-referenced against official state DOI filings before publication, with quarterly re-verification cycles.
Read our full methodology or contact us with corrections.