A homeowners and car insurance bundle combines both policies with the same insurer. This approach can make home and auto insurance more affordable and provide better value. But the best companies for bundling offer not only savings but good or great customer service ratings for both their car and home insurance policies.
For those focused more on savings than service quality, combining home and car insurance in a bundle is almost always the cheapest home and auto insurance option. Even so, MoneyGeek found that combining USAA's auto insurance and Travelers' homeowners insurance was cheaper than bundling with State Farm and USAA. It’s important to get multiple quotes, with and without bundling, to find the most affordable rates.
MoneyGeek found that a State Farm bundle offers the best combination of quality service and affordability.
The two widely-available companies most likely to have cheapest home and auto insurance bundles are State Farm and Allstate.
When you bundle home and auto insurance, the costs average at $2,739 per year, while the unbundled policies cost an average of $3,288 per year.
MoneyGeek scored insurance companies based on combined measures of affordability and service for both products and found that State Farm offers the best home and auto insurance bundle.
If you are in the military or have a military background, USAA is an excellent option, receiving a perfect score due to its cheap rates and unparalleled service reputation.
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The cheapest widely-available home and auto insurance bundle due to its huge bundle discount
Stellar customer satisfaction ratings, especially for home insurance
Mostly offers just the standard auto and homeowners insurance coverages
On average, State Farm offers one of the biggest bundle discounts at 25% and annual premium of $2,534 after discounts. Considering that State Farm home and auto insurance policies are relatively affordable to begin with, this makes it one of the most affordable bundles around. And you're getting great value for your money too, as it has a stellar customer service reputation, especially for homeowners insurance.
State Farm doesn't offer some of the common optional coverages that other insurers might offer, such as accident forgiveness in auto insurance,. But it does offer the big ones such as roadside assistance and rental car reimbursement for auto insurance, and home system protection and service line coverage for homeowners insurance. Overall, State Farm will offer good service at a good price with most of the coverages you need for home and auto.
Read MoneyGeek's State Farm Auto Insurance Review
Affordable home insurance and average car insurance costs are made relatively cheap with the bundle discount
Higher home insurance customer satisfaction than State Farm
Allstate car insurance may be expensive for some drivers
Allstate is neck and neck with State Farm for the best bundle. Both have great customer satisfaction ratings, but Allstate is not quite as affordable on average due to a lower bundle discount.
Allstate may be a better fit for shoppers who want coverages outside of the standard fare offered by most insurers. For instance, Allstate offers New Car Replacement, which is a great coverage for those with recent car models. And home insurance policyholders can benefit from its declining deductible, where your deductible falls $100 every year you don't make a claim.
Read MoneyGeek's Allstate Auto Insurance ReviewIf you want to make a comparison of the best home and auto insurance companies individually, MoneyGeek has resources for that too:
The average home and auto bundle discount across all insurers is 17%, which can mean substantial savings for customers. State Farm has the largest percentage discount at 25%. In contrast, USAA has the smallest average discount in percentage terms at 8%, when compared to purchasing both policies from the insurer separately.
However, the biggest discount doesn’t always mean the cheapest quote for home and auto insurance. For example, USAA may offer the smallest average discount, but it’s also the cheapest policy overall, with the total bundled premium averaging $2,513. Farmers offers a 19% discount when you bundle the two policies, but it’s also the most expensive bundle at roughly $3,157 per year — $418 more than the national average of $2,739.
It’s important to remember that the best discount percentage-wise doesn’t always mean the best savings in dollars if you’re looking for the lowest overall price for car and homeowners insurance. We found USAA to be the cheapest for home and auto bundles at an average yearly cost of $2,513 and State Farm the runner-up at roughly $2,534.
However, USAA is only available to active-duty military members, veterans and their families. Allstate comes closest to State Farm’s rates at roughly $2,625 for a multi-policy bundle for car and homeowners insurance.
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On average, State Farm offers the biggest bundle discount on the market, making it the cheapest-widely available home and auto insurance bundle and the cheapest overall after USAA.
You may be to get an even cheaper quote by taking advantage of all available discounts. For instance, State Farm offers most of the common discounts other car insurers do such as multiple cars insured, safe driving, anti-theft technology and passive restraint discounts.
Bundle discounts are often the best way to save on car and homeowners insurance, but in rare cases, you’ll get better savings by combining companies and not policies. The only combination we found to beat State Farm ($2,534) and USAA’s ($2,513) bundle rates was combining Travelers home insurance with USAA auto insurance for a total average premium of $2,471 per year. For those without access to USAA, the cheapest bundle on average is a combination of Nationwide and Travelers, but even that pair is hundreds of dollars more expensive than most other insurers would offer with a bundle discount.
Price is not the only factor to consider when shopping for insurance quotes. Consider a company’s customer satisfaction levels, service scores and financial strength ratings as well if you’re looking for more than just affordable coverage at low rates.
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Both car and home insurance are unique to each state, which means that insurance pricing is specific to each state. The cheapest national average premium may not be the cheapest rate you can get where you live.
Our data shows USAA is the cheapest to bundle in 14 states, while State Farm’s bundle rates for auto and homeowners insurance are cheapest in 13 states. Allstate comes in third with the cheapest rates in 9 states. But when comparing quotes and rates in your state, you may find that premiums vary widely.
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Most of the time, it’s cheaper to bundle auto and home insurance with the same provider. The biggest advantage to an auto and homeowners insurance bundle is how much you can save due to the bundling discount, which is 17% on average. It also can be more convenient to pay only one company for multiple policies.
However, it may be cheaper to have separate auto and home insurance providers in some cases. MoneyGeek’s analysis found that Travelers is a consistently affordable homeowners option that can beat bundle discounts. For example, we found that it was cheaper to get a combination of USAA auto and Travelers home insurance than a USAA bundle.
For non-USAA drivers, there are other instances where not bundling is cheaper than bundling with an expensive insurer. For example, Nationwide auto and Travelers home coverage costs less than a Nationwide or Farmers bundle. MoneyGeek found five other combinations of insurers that are cheaper than the Farmers bundle.
It’s important for shoppers to be aware that though bundling is often the most affordable choice, bundles from certain companies — such as Farmers Insurance — can be quite expensive. If you have high auto rates because of poor credit or a bad driving record, you might also find that keeping both separate is better for your wallet. The best way to know if you should bundle home and auto is to compare quotes with and without bundling from at least three companies to see what combination of coverage is the cheapest for you.
Follow these steps to maximize your savings with a car and homeowners insurance bundle:
Review your current policies to know how much coverage you have. That way, you can get quotes for the same coverage limits.
Contact your current insurance company. Then comparison shop with three or more other insurance companies for home and auto coverage. Ask for bundle quotes and individual quotes to compare.
Ask which discounts they offer so you can save the most. Some companies also offer a single deductible for your home and car if both are damaged in the same incident.
Rates frequently change, so complete this process every year or two to ensure you’re getting the best deal.
Home and auto insurance bundles are some of the most common discounts in the insurance industry. Here are some of the most common questions about them:
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MoneyGeek compiled hundreds of quotes for the biggest insurance companies in the country and scored bundle packages based on affordability (55%), auto insurance customer satisfaction (15%), home insurance customer satisfaction (15%) and financial stability (15%). Costs for the policies were based on the limits determined in MoneyGeek's auto insurance methodology and home insurance methodology.
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