How To Save Money by Bundling Insurance Policies

Insurance companies offer many discounts to keep customers and attract new policyholders. The most popular car insurance discount is bundling insurance. 

Many insurers give discounts when you sign up for several policies and bundle them together. The most typical and cost-effective combination is auto and homeowners insurance bundles. However, you can frequently combine car insurance with renters, condo, motorcycle, and boat insurance to maximize your potential savings. 

But when all is said and done, will an insurance bundle actually result in greater savings than other types of discounts? 

On average, you can save between 5% and 25% percent by bundling home and auto insurance. Our guide compares the best multi-policy insurance companies so you can find the best bundle insurance.

What is an insurance bundle?

When a customer has multiple insurance policies with the same insurance company, it is referred to as an insurance bundle. For example, in one scenario, you might save money by combining your car insurance with your RV insurance.

Insurance companies frequently recommend several types of policies in a bundle to persuade customers to purchase more products from them. The most commonly bundled insurance is home and auto, but insurers typically offer a variety of insurance products. Companies offer insurance bundles to encourage customers to buy multiple policies from them.

What advantages do home and auto insurance packages offer?

Saving money is the driving force behind the popularity of insurance bundles, but there are more immediate advantages to bundling your insurance, including:

• Customers may earn loyalty discounts by bundling with the same company. If you renew your insurance bundle every year, your insurer will reward your loyalty during the underwriting process, which can result in a discount.
• Customers may save time by choosing to bundle their insurance together. Having a central place to take care of all insurance is certainly advantageous when it comes to managing coverage and paying bills on time.
• Customers may receive greater coverage overall. Doing business under one roof often results in more personalized coverage and a single deductible across all bundled policies, ultimately resulting in more savings.

If you need multiple insurance policies to protect your assets, we recommend seeing how much you can save by bundling all of your insurance with one company.

Are there disadvantages to bundling insurance?

Due to the ease of managing policies and bills, consumers may prefer bundling, encouraging them to stick with a single provider longer. However, buying different types of insurance separately can give customers more flexibility and options. 

According to the National Association for Insurance Commissioners (NAIC), bundled products also raise several potential problems from a regulatory standpoint, such as possible violations of state anti-inducement or anti-rebating laws, unfair competition, and the unlicensed sale of insurance.

We recommend comparison shopping and deciding on a policy based on the coverage provided rather than just the price. 

How To Save Money by Bundling Insurance Policies

Seeking a better rate with your current insurer by adding a homeowners policy is a good place to start saving money on car insurance. However, be sure to obtain competitive bundle insurance quotes from multiple companies first. 

For instance, Amica Mutual and Progressive auto insurance are known for their competitive rates and for having some of the best insurance bundles. Still, you should compare home insurance companies near you to see what other options are available. A lower quote might enable you to bargain with your current company, or you might decide to switch to a new company with lower overall rates. 

Remember that every person is unique. The best insurance company for you will depend on your specific needs, so the cheapest company for the average customer might not be the cheapest company for you. Compare the total cost of your individual policies to the cost of the bundle to ensure you’re getting the best value for your money. 

While combining two or more insurance policies typically results in cost savings, this is not a given. Review your insurance quotes thoroughly to make sure you’re benefitting. Receiving a customized quote is ultimately the best way to determine if you can profit from combining insurance policies.

Which company has the cheapest bundle insurance?

Most major insurance companies offer policyholders the option to bundle. However, discount savings vary widely from company to company and state to state.

Farmers Insurance is officially one of the highest-rated bundling insurance companies on the market, but bundle insurance discount percentages are highly relative to the cost of all affected policies and other discounts.

For example, Farmers insurance rates are more expensive than many of its competitors. This means you still may pay higher rates even with a bundle insurance discount. So, shop around and compare multiple local insurers to see where you can get the best price.

If you’re shopping for auto and home insurance, keep the following tips in mind:

• Not all policies are created equal, so you should check to see if the other insurance provider has any limitations that could affect your coverage.
• Compare your new bundled rates to the car insurance rates you previously received when you weren’t bundling.
• If you only deal with one insurance company, make sure they have strong claims management and customer service in addition to low rates and bundling discounts.

As long as you’re happy with the bottom line results, the best bundle is the one that gives you everything you need at a price you’re comfortable with. 

Should you bundle your home and auto insurance?

With some types of policies, insurers excel at handling claims and offering comprehensive coverage but struggle with others. 

For instance, a company may have a stellar reputation for quickly resolving homeowners insurance claims but a terrible one for resolving car insurance claims. So combining these types of insurance with that insurer might not be a good idea in that situation.

Can you bundle other types of insurance with car insurance?

Most bundled insurance involves either home and auto or renters and car insurance with the same insurance company.

Another example of bundling is purchasing a good or service and getting an added insurance policy. This category most prominently covers signing up for an auto subscription service that includes auto insurance or buying a travel package with travel insurance. 

Travel insurance is typically sold as an add-on at the point of sale, such as when purchasing a plane ticket or making a cruise reservation. Similarly, companies will offer car insurance and, depending on the service, roadside assistance as part of this new trend. 

For example, Tesla now sells car insurance in California to local customers when they purchase one of its models. Read our Tesla insurance review to learn more. Carvana also provides an insurance package to its customers during checkout.

These businesses typically don’t have insurance licenses, so they work with licensed companies to compliantly sell insurance along with their goods. To ensure that a licensed agent or broker sells all insurance products, state insurance regulators will keep an eye on these collaborations.

Case Studies: Examples of Bundling Insurance Policies for Cost Savings

Case Study 1: The Johnson Family

The Johnson family decided to bundle their home and auto insurance policies with the same company. By doing so, they were able to save 15% on their car insurance premium.

This bundled policy made it more convenient for them to manage their insurance coverage and pay their bills. The Johnsons found it beneficial to have all their policies in one place, simplifying their insurance experience.

Case Study 2: Sarah’s Motorcycle and Renters Insurance Bundle

Sarah, a motorcycle owner and renter, explored the option of bundling her insurance policies. She found a company that offered a discount for combining motorcycle and renters insurance.

By bundling these policies, Sarah saved 10% on her motorcycle insurance premium. The convenience of managing both policies through one insurer made it a favorable choice for her.

Case Study 3: Mark’s Auto and Condo Insurance Bundle

Mark owned a condo and wanted to bundle his auto and condo insurance. He found a company that offered a competitive rate for this bundle. By combining these policies, Mark saved 20% on his auto insurance premium. Additionally, having both policies with the same insurer simplified his claims process and policy management.

Case Study 4: Emily’s Homeowners and Boat Insurance Bundle

Emily owned a home and a boat and decided to bundle her homeowners and boat insurance policies. She found an insurer that offered a discount for this combination.

By bundling her policies, Emily saved 25% on her boat insurance premium. This bundle provided her with the convenience of managing both policies under one provider and saved her a significant amount of money.

Conclusion: How To Save Money with Bundled Insurance

You can save anywhere between 5% and 25% when you bundle your home and auto insurance policies. Drivers can also bundle car insurance with other types of coverage, including renters insurance and motorcycle coverage. 

Bundle insurance has many advantages, making it much easier to manage your policies and conveniently pay insurance bills all in one place. 

However, customer satisfaction ratings can vary based on the type of insurance. For instance, one company that excels in home insurance may not have the best customer service when it comes to car insurance. 

Compare car insurance rates and insurance bundle discounts from multiple companies to ensure you’re working with the right one. Stay current on all your necessary insurance policies by checking rates and quotes with our free comparison tool below.