Best and Cheapest Home and Auto Bundle Insurance Companies in 2021

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, saving customers up to $833 per year. The best companies for bundling offer lower rates when they insure both policies and have good or better customer service ratings for both their car and home insurance departments.

Combining home and car insurance in a bundle is almost always the best option for substantial savings. Even so, MoneyGeek found that combining USAA's auto insurance and Travelers' homeowners insurance was cheaper than bundling with State Farm and USAA.

The best car and homeowners bundle comes from an insurance company with low rates and great customer service. We found USAA to be the cheapest at roughly $2,513 per year and State Farm as the runner-up at roughly $2,534 compared to the national average annual rate of $2,739.

The average home and auto bundle discount across all insurers is 17%, which can mean substantial savings for customers. USAA has the smallest average discount from a percentage standpoint at 8%, compared to purchasing both policies from the insurer separately. In contrast, State Farm has the largest percentage discount at 25%.

However, the biggest discount doesn’t always mean the cheapest rate 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.

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.

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.

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.

The biggest advantage to an auto and homeowners insurance bundle is how much you can save due to the bundling discount. It also can be more convenient to pay only one company for multiple policies. Most companies offer other products, like life insurance and liability insurance. If you need more than just home and car insurance, you might be able to stack discounts for having multiple policies and save even more.

Most insurance companies offer a higher percentage discount on a home insurance policy when it’s bundled with auto insurance. If the home insurance is more expensive, you’ll save more by bundling. But if you have high auto rates because of poor credit or a bad driving record, you might 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 from at least two or three companies. It never hurts to shop insurance companies. If you’ve been with your company for more than a year or two, you might be able to save without sacrificing affordability, coverage or customer service. But make sure to ask about both scenarios: bundling and buying separate policies to determine which makes the most sense for your situation.