When Bundling Home and Auto Actually Saves Money (and When It Doesn’t)
Bundle discounts can be great, but not always. Here’s how to compare apples-to-apples and avoid overpaying for convenience.
What carriers mean by bundling
Bundling means buying multiple policies (usually home + auto) from the same insurer to qualify for multi‑policy discounts.
Discounts vary (often 5–20% on one or both policies) and depend on carrier strategy in your state.
Why bundling sometimes wins
Single billing and one agent. Discount stacks with other credits (roof, alarms, claim‑free).
Some carriers price home policies aggressively only if auto is included, especially in competitive states.
When unbundling can be cheaper
If your auto risk profile is high (tickets, young drivers), moving auto elsewhere may lower the combined total—even after losing bundle discounts.
Niche carriers (e.g., for wildfire‑exposed homes) may beat a bundle on the home side. Always compare totals.
How to compare correctly
Collect quotes the same week with matching coverage: dwelling limit, personal property, liability, and deductibles.
Ask each carrier for: (1) home+auto bundle total, (2) home only, (3) auto only. Put numbers in a simple spreadsheet and compare the combined cost.
Other perks to consider
Accident forgiveness, diminishing deductibles, or broader personal property coverage under certain bundles may change the value equation.
Service quality matters—claims handling speed and contractor networks can be worth a few dollars difference.
Bottom line
Don’t assume bundling always wins. Run the math both ways—bundle vs stand‑alone—and pick the real lowest total with coverage you trust.
Run the math, not the myth
Bundle discounts can look big, but sometimes a stand‑alone policy still wins. Always compare: (1) bundle total, (2) home‑only, (3) auto‑only—same coverages and deductibles.
When bundling shines
- Carriers targeting your region offer aggressive multi‑policy credits.
- Claim‑free discounts stack with roof/mitigation credits for outsized savings.
When unbundling beats the bundle
If your auto risk is high (young drivers, tickets), a different auto carrier may drop the combined cost more than the bundle saves. Niche home carriers can also undercut bundles in catastrophe‑exposed areas.
Checklist for a fair comparison
- Match coverage: dwelling limit, personal property, liability, deductibles.
- Quote three ways in the same week to avoid market drift.
- Include service factors: claims handling, network quality, endorsements.