How Much Can You Save by Bundling?
Bundling your home and auto insurance with the same carrier typically saves 10-25% on your combined premiums. For the average homeowner, that translates to $400-$800 or more per year in savings, depending on your coverage levels and carrier.
Here is a real-world example: A homeowner in suburban Illinois paying $2,200/year for home insurance and $1,800/year for auto insurance with separate carriers is spending $4,000 total. By bundling both policies with a single carrier offering a 20% multi-policy discount, their combined premium drops to approximately $3,200, a savings of $800 per year, with no reduction in coverage.
But here is what most people do not realize: the best bundle is not always with the same carrier. Sometimes, splitting your home and auto between two different carriers, each offering the most competitive rate for that line, saves more than any single-carrier bundle. That is exactly what we help you figure out.
When Bundling Wins
Bundling your home and auto insurance with the same carrier is usually the best option in these scenarios.
You Have a Standard Risk Profile
If you have a clean driving record, no recent home claims, a newer roof, and standard coverage needs, most carriers will offer you competitive rates on both lines. In this case, the 10-25% bundle discount on top of already-good rates makes bundling the clear winner. The savings compound because you are getting a discount on two policies, not just one.
You Want Simplified Management
Having both policies with one carrier means one agent, one bill, one renewal date, and one company to call when you need to make changes or file a claim. For busy families, the convenience of a single-carrier bundle is a significant benefit beyond the price savings.
You Qualify for Vanishing Deductible
Some carriers, like Nationwide and Travelers, offer a vanishing deductible for bundled customers. For each year you remain claims-free, your deductible decreases by $100-$200. After several years, your deductible could drop to $0. This benefit is only available to customers who bundle.
You Want Enhanced Coverage Perks
Several carriers offer exclusive coverage enhancements when you bundle, such as accident forgiveness on your auto policy, guaranteed replacement cost on your home, or identity theft protection included at no extra charge. These perks can add hundreds of dollars in value.
When Splitting Saves More
Bundling is not always the cheapest option. In these situations, splitting your home and auto insurance between two different carriers can save you more money.
You Have a High-Risk Factor on One Line
If you have a recent at-fault accident or DUI on your driving record but a pristine home claims history (or vice versa), the best strategy is often to place each policy with the carrier that is most competitive for that specific risk. For example, Progressive might offer the best rate for a driver with a minor violation, while Openly might offer the best rate for your home. Splitting gives you the best of both worlds, and the combined cost may be lower than any single-carrier bundle.
Your Home Has Unique Characteristics
Older homes, homes with specialty roofing, high-value homes, or homes in high-risk areas (coastal, wildfire-prone) are not rated the same by every carrier. A carrier that specializes in your type of home might offer a rate so competitive that even without a bundle discount, the total cost is lower than bundling with a carrier that charges more for your home's specific risk factors.
One Carrier Dominates on Price for One Line
Sometimes the pricing gap between carriers is so large on one policy that no bundle discount can close it. If Carrier A offers auto insurance for $600 less than anyone else, but their home insurance is only average, you are still better off taking their auto rate and placing your home with the cheapest home carrier separately.
How We Find Your Best Option
Most agents will simply bundle your home and auto with one carrier and call it a day. At Better Choice Insurance Group, we take a more thorough approach.
Step 1: Quote everything separately. We run your home insurance and auto insurance through all 22+ carriers independently. This gives us the true market rate for each policy on its own merits.
Step 2: Calculate bundle options. We then apply the bundle discount from every carrier that offers both home and auto, calculating the combined cost for each potential bundle.
Step 3: Compare bundles vs. splits. We compare every bundle combination against the best split combination (cheapest home carrier + cheapest auto carrier). This tells us definitively whether bundling or splitting saves you more money.
Step 4: Factor in non-price benefits. We weigh the price difference against non-price benefits like vanishing deductibles, accident forgiveness, claims satisfaction ratings, and the convenience of a single carrier. If a bundle costs $50 more per year but includes $200 in extra benefits, we will recommend the bundle.
Step 5: Present your options. We present you with the top 2-3 options, clearly showing the price, coverage, and trade-offs of each. You make the final decision with full transparency.
Bundle Discount by Carrier
Each carrier offers different bundle discounts. Here is what you can expect from our most popular carriers for home and auto bundles.
| Carrier | Bundle Discount | Notable Bundle Perks |
|---|---|---|
| Travelers | 15 – 20% | Vanishing deductible, accident forgiveness, new car replacement |
| Safeco (Liberty Mutual) | 12 – 18% | RightTrack telematics discount, identity fraud coverage |
| Nationwide | 12 – 20% | Vanishing deductible, accident forgiveness, brand new belongings |
| Progressive | 10 – 15% | Name Your Price tool, Snapshot telematics, multi-vehicle savings |
| Grange | 10 – 15% | Flexible payment options, local claims service, loyalty rewards |
Discount percentages are approximate and may vary by state and risk profile. Get a personalized quote to see your exact bundle savings.
Beyond Price: Other Benefits of Bundling
While savings are the primary motivator for bundling, there are several other advantages worth considering.
One Agent, One Call
When both policies are with the same carrier through our agency, you have a single point of contact for all your insurance needs. Policy changes, billing questions, and claims are all handled by one team that knows your full account.
Vanishing Deductible
Several carriers reduce your deductible by $100-$200 for each claims-free year when you bundle. After 5 years without a claim, your $1,000 deductible could be reduced to $0, saving you money when you do need to file a claim.
Single Renewal Date
Aligning your home and auto policy renewal dates simplifies your financial planning. You know exactly when your insurance costs hit each year, making budgeting easier.
Easier Annual Review
At renewal time, we review your entire insurance program at once. This ensures your coverages are aligned, your limits are adequate, and you are taking advantage of every available discount across both policies.
Accident Forgiveness
Some carriers offer accident forgiveness exclusively to bundled customers. This means your first at-fault accident will not increase your auto insurance premium, potentially saving you hundreds of dollars over 3-5 years.
Enhanced Claims Experience
If a single event damages both your home and car, such as a hailstorm, having both policies with the same carrier means one claim adjuster handles everything. There is no finger-pointing between companies about what is covered.
Frequently Asked Questions
No. While bundling often provides the best overall value, it is not always the cheapest option. As an independent agency with 22+ carriers, we can find competitive rates whether you bundle or split your policies. We always compare both options and recommend the one that saves you the most money while providing the best coverage.
Yes. Many carriers offer additional multi-policy discounts when you add umbrella insurance, landlord insurance, or recreational vehicle coverage to your bundle. The more policies you combine, the larger the total discount. We can quote all of your insurance needs together to maximize your savings.
If you need to move one policy to a different carrier (for example, if your auto rate increases at renewal), you may lose the bundle discount on the remaining policy. However, we will calculate the total cost impact before making any changes. Sometimes the savings on the moved policy more than offset the lost bundle discount on the other. We always run the numbers both ways so you can make an informed decision.
We can typically provide you with multiple bundle and split-policy options within 24 hours of receiving your information. In many cases, we can provide preliminary quotes the same day. Start by requesting a free quote online or calling us at (847) 908-5665.