Best and Cheapest Home and Auto Bundle Companies in Alabama (2023)
Compare Rates and Save on Car Insurance
By, Content Director
The Best Bundled Insurance in Alabama
The Best Home and Auto Bundles in Alabama
In terms of affordability, quality and special discounts, the following two insurance companies offer the best auto and home insurance in Alabama:
- State Farm: MoneyGeek score of 83 out of 100
- Allstate: MoneyGeek score of 82 out of 100
State Farm received high ratings in the home and auto satisfaction categories; however, its bundles are more expensive than its competitors. Meanwhile, on average, Allstate offers the cheapest bundle and provides generous discounts.
Earned high customer satisfaction ratings
Offers excellent discounts
Offers several bundling options for policyholders
Has high cost relative to competitors
Does not offer accident forgiveness coverage
MoneyGeek’s analysis ranked State Farm as the best auto and home insurance in Pennsylvania, with a policy costing around $2,999 annually. When you bundle your auto and home insurance with State Farm, you’ll save an average of $891 per year — a 23% discount.
State Farm is a reliable choice for homeowners insurance, offering seven discounts, which is comparable to the industry standard. Among the discounts offered are protective devices, home renovation, new home and bundle incentives. State Farm’s home insurance also offers a variety of coverages, such as mold coverage, scheduled personal property, back-up of sewer or drain and earthquake coverage, among others.
It is also a top-rated auto insurer, boasting an excellent record for financial stability, discounts and complaints. Roadside assistance, rental car reimbursement and travel reimbursement are some of State Farm's auto insurance add-on coverages. However, other common coverages — such as accident forgiveness, new car replacement and gap insurance — are not provided.
Earned a perfect score for discounts
Earned above-average insurance bundle satisfaction
Considered the cheapest insurer nationally
Does not offer multiple car or defensive driving discounts
Does not offer better car replacement coverage
With its strong track record in discounts and insurance bundle satisfaction, Allstate emerged as the runner-up for the best bundle insurance in Alabama. Your rate is lowered by approximately $345, or 17%, when you choose Allstate's bundled coverage, which costs about $1,644 annually.
Homeowners seeking a good mix of financial stability, client satisfaction and affordability might consider Allstate home insurance. It provides a number of discounts, making it the most affordable insurance in the country. Some of its discounts include claims forgiveness, deductible reward, bundle and automatic payment incentives.
Meanwhile, Allstate auto insurance is a considerable option for potential policyholders, having above-average marks for customer satisfaction and complaints. Many popular add-on coverages are available with Allstate plans: roadside assistance, rental car reimbursement, accident forgiveness, new car replacement and so on. Additionally, Allstate provides special coverage for media and portable electronics.
The Best Home and Auto Bundles in Alabama for Military Backgrounds
USAA is Alabama's top home and auto insurance provider, earning a MoneyGeek rating of 91 out of 100. Although USAA has eligibility requirements that restrict its availability to the wider population, it is a great choice for both active-duty and retired military members in Alabama.
USAA would have been the best home and auto insurance in Alabama if it wasn’t exclusive to military members, veterans and their families. The insurer received flawless MoneyGeek ratings for both home and auto insurance.
The top provider of homeowners insurance in Alabama for military families is USAA. Although USAA home insurance only provides basic discounts, such as those for bundling, safety equipment and claims-free coverage, its policies are relatively inexpensive compared with other providers.
Meanwhile, USAA is a reputable auto insurance company. Although it does not offer any unique insurance coverages, it does provide standard liability coverage, comprehensive insurance and collision insurance, similar to other auto insurers.
The Best Home and Auto Bundle Discounts in Alabama
Insurance companies in Alabama offer an average annual discount of $297 or 11% for bundling auto and home insurance policies. Of the providers evaluated, State Farm offers the highest discount at 23%, whereas Nationwide has the least attractive offer — no discount.
However, a company’s discount rate won’t necessarily mean they’ll be the best provider for you. For example, Farmers provides the second-cheapest home and auto insurance in Alabama at a yearly cost of $1,729, but it has a lower average discount rate than other insurance providers.
The Cheapest Home and Auto Bundles in Alabama
The following insurance providers offer the cheapest home and auto insurance in Alabama, according to MoneyGeek's analysis:
- Allstate: $1,664 per year
- Farmers: $1,729 per year
Keep in mind that the cheapest choice may not be the best for your particular needs and goals. MoneyGeek suggests that you weigh the benefits, drawbacks and features of each insurance provider to achieve the most long-term financial savings.
At $1,664 per year, Allstate provides the cheapest rate for bundling auto and home insurance in Alabama. Purchasing both your auto and home insurance from this provider could save you up to 17%.
An Allstate home insurance policy in Alabama costs $1,082 per year, but your coverage requirements and homeowner profile may affect this amount. In comparison to its competitors, Allstate offers some of the lowest rates for home insurance. Meanwhile, Allstate car insurance costs an average of $927 per year in the state. Drivers seeking either full or minimum coverage will discover that Allstate's premiums are also relatively lower than other providers.
The Cheapest Non-Bundle Insurance Combinations in Alabama
Purchasing home and auto insurance from the same company may not always be the best course of action. Sometimes, combining insurance from two different companies might save you more money.
For instance, you could spend as low as $1,352 per year on insurance by purchasing Farmers home insurance ($425) and Allstate auto insurance ($927) — this is $312 less than Allstate’s home and auto insurance bundle priced at $1,664.
Should You Bundle Home and Auto Insurance in Alabama?
In general, you may spend less money by bundling your home and auto insurance. Even if you don’t save money, bundling insurance policies is typically more convenient; it's easier to manage your plans when they are with the same company.
Bundle discounts in Alabama can save you between 3% and 23% per year.
State Farm customers can save 23%, or up to $891, when they bundle their insurance plans. Meanwhile, Farmers only offers customers a 3% discount for bundling home auto and home insurance policies.
Bundles are a convenient way to combine your most important property insurance policies.
Combining your home and auto insurance has advantages. It’s typically more time efficient to manage your policies with one provider and, in some instances, you may be able to save money.
In rare cases, it might be better not to bundle in Alabama.
In Alabama, it might cost less to purchase policies from different providers. For instance, combining Farmers home insurance ($425) and Allstate auto insurance ($927) is the most cost-saving option; your total cost for insurance would be $1,352, which is $312 less than Allstate’s home and auto insurance bundle at $1,664.
About Mark Fitzpatrick