Bundling home and auto insurance is one of the simplest ways to cut your insurance costs. Most major insurers offer a multi-policy discount when you carry both policies with the same company. The average savings range from 10% to 25% off your combined premiums. In dollar terms, that typically means $869 to $1,429 per year back in your pocket.
Nearly every national carrier promotes this discount. However, the exact amount you save depends on your state, coverage levels, and driving history. Bundling home and auto insurance remains the most popular discount type in the property and casualty industry. It rewards loyalty with real savings.
How Bundling Home and Auto Insurance Works
Bundling home and auto insurance means purchasing both policies from the same insurance company. The insurer gives you a percentage discount on one or both policies. In most cases, the discount applies automatically when both policies are active. You do not need a special code or coupon.
Eligibility is straightforward. You must own or rent a home and have at least one vehicle to insure. The home and auto policies must be with the same carrier. Some insurers require both policies to start on the same date. Others let you add a second policy at any time. For example, you can start with auto insurance and add homeowners coverage later to unlock the bundle discount.
Insurers look for standard underwriting factors. These include your credit score, claims history, location, and vehicle type. Bundling home and auto insurance does not change these requirements. It simply adds a discount on top of your normal rate. The discount typically appears as a line item on your declarations page.
How Much Can You Save by Bundling Home and Auto Insurance?
Savings from bundling home and auto insurance vary by carrier. The industry average is roughly 15% off combined premiums. That translates to about $869 per year for a typical household. However, some companies offer significantly more. Progressive advertises over 25% savings for new bundled customers. State Farm reports savings up to $1,429 per year.
Here is a comparison of major insurers and their bundling discounts:
| Insurance Company | Bundle Discount | Estimated Annual Savings |
|---|---|---|
| State Farm | Up to 22% | Up to $1,429 |
| Allstate | Up to 25% | Varies by state |
| Progressive | Up to 25% | ~$1,086 |
| Liberty Mutual | Not published | $950+ |
| USAA | Up to 10% | Varies |
| Nationwide | Up to 15% | ~$1,032 |
| Farmers | 10–22% | ~$1,232 |
| Travelers | Up to 15% | Varies |
As a result, bundling home and auto insurance could save you over $1,000 annually with the right carrier. Your actual savings depend on your coverage amounts and risk profile. Always compare quotes from at least three companies. You can compare auto insurance rates at Car Cover Guide to find the best starting point for your auto policy.
Which Insurance Companies Offer This Discount?
Nearly every major national insurer offers bundling home and auto insurance discounts. State Farm is the largest home and auto insurer in the country. They offer up to 22% off when you bundle. Allstate promotes discounts up to 25%. Progressive partners with homeowners insurance providers to create seamless bundles. Their customers save an average of $1,086 per year.
Liberty Mutual advertises over $950 in annual savings for new bundled customers. Nationwide offers up to 15% off with an average savings of $1,032. Farmers provides 10% or more depending on your state. In California, Farmers has offered bundle discounts as high as 22%. Travelers applies up to 15% off your home insurance premium when paired with auto coverage.
USAA serves military members and their families. They offer up to 10% off for bundling home and auto insurance. Typically, you need an active auto policy within 60 days of starting your property policy. Smaller regional carriers like American Family and Country Financial sometimes offer even higher bundle discounts. American Family has advertised savings up to 40% in select markets.
How to Apply for Bundling Home and Auto Insurance
Applying for bundling home and auto insurance is simple. Start by getting a quote for both policies from the same insurer. You can do this online, by phone, or through a local agent. Most company websites have a “bundle and save” option on the quote page. Select both home and auto to see your combined rate with the discount applied.
You will need several documents. For homeowners insurance, have your property address, square footage, roof age, and any security features ready. For auto insurance, gather your driver’s license numbers, vehicle identification numbers, and current policy details. In most cases, the insurer will also pull your claims history and credit information automatically.
Once you submit your application, the insurer applies the bundle discount to your quote. Review the declarations page carefully. Verify the discount appears as a separate line item. If you already have one policy with a company, call your agent to add the second. The discount usually takes effect on your next billing cycle. Some insurers backdate the savings to the start of both policies.
Frequently Asked Questions
Is bundling home and auto insurance always cheaper than buying separate policies?
In most cases, bundling saves money. However, it is not always the cheapest option. Sometimes a specialized insurer offers a lower rate on one policy. Always compare bundled quotes against separate quotes from different carriers. The lowest total cost wins regardless of the discount structure.
Can I bundle home and auto insurance if I rent instead of own?
Yes, most insurers let you bundle renters insurance with auto insurance. For example, Progressive and State Farm both offer renter-auto bundles. Typically, the discount is slightly lower than a homeowner-auto bundle. However, you can still save several hundred dollars per year.
Will I lose my bundling discount if I cancel one of the policies?
Yes. If you cancel either your home or auto policy, the bundle discount goes away. As a result, your remaining policy will increase to the standard unbundled rate. Some insurers give you a grace period of 30 to 60 days before removing the discount. Contact your agent before canceling to understand the full cost impact.
Compare Home Insurance Rates
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Official Sources & Resources
For verified information on home insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- FEMA (Federal Emergency Management Agency): fema.gov
- FloodSmart (National Flood Insurance Program): floodsmart.gov
- USA.gov — Housing: usa.gov/housing
Content last reviewed April 2026. If you notice any outdated information, please contact us.