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Our analysis found that State Farm is the best company for home and auto insurance bundles. We evaluated insurers based on their bundling discounts, auto and home insurance costs and complaint level.
Home and auto insurance bundles can get you a decent multi-policy discount with most insurers. You receive a bundling discount by purchasing both your home and auto insurance with the same company.
How We Chose the Best Home and Auto Insurance Bundles
We analyzed bundling discounts along with auto insurance and home insurance costs and complaints. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate insurance companies, so that all companies are measured equally. You can read more about our editorial guidelines and the methodology for the ratings below.
- 672 rates analyzed
- 243 data points crunched
- 102 years of insurance experience on the editorial team
State Farm – Best Overall – 5/5
Erie Insurance – Great for add-on coverage – 4.7/5
Nationwide – Best for low-cost auto and home insurance – 4.7/5
Auto-Owners Insurance – Best for low level of complaints – 4.2/5
USAA – Best for military members and veterans – 4/5
BEST OVERALL – State Farm – Compare Rates
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Average bundling discount – 23%
Auto insurance complaint level – Low
Home insurance complaint level – High
Experts’ Take
We picked State Farm as best overall for bundling because it has the best average bundling discount (23%) among the companies we analyzed, a low level of complaints for auto insurance and competitive prices. This combination makes it a good choice if you’re looking to bundle your home and auto policies.
- Great auto insurance renewal discount (14%) after being with State Farm for at least three consecutive years.
- Home insurance costs are cheaper than a majority of the companies we evaluated.
- Low-cost auto rates for drivers with a DUI.
- Offers extended replacement cost coverage for houses, which stretches your limit when rebuilding costs exceed your dwelling coverage amount.
More: State Farm Car Insurance Review
GREAT FOR ADD-ON COVERAGE – Erie – Compare Rates
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Average bundling discount – 15%
Auto insurance complaint level – Low
Home insurance complaint level – Low
Experts’ Take
We are impressed by Erie’s outstanding home and auto insurance coverage offerings. For auto insurance, the company offers accident forgiveness, gap insurance, new car replacement coverage and vanishing deductibles. Erie’s home insurance has add-on coverage, such as extended replacement cost, guaranteed replacement cost coverage, expanded liability coverage and service line protection.
- Low-cost car insurance rates for drivers with a DUI, speeding ticket or who caused an accident.
- Extended Water add-on covers natural disaster floods, which aren’t typically covered by standard home insurance, and other water damage.
- Erie’s SecureHome policies include several perks, including coverage for misplaced and lost jewelry and identity theft.
More: Erie Car Insurance Review
BEST FOR LOW-COST AUTO AND HOME INSURANCE – Nationwide – Compare Rates
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Average bundling discount – 15%
Auto insurance complaint level – Low
Home insurance complaint level – Low
Experts’ Take
We like Nationwide for its low-cost auto and home insurance rates plus its good bundling discount of 15%.
- Offers accident forgiveness, new car replacement and vanishing deductible options for car insurance.
- No banned dog list for homeowners insurance.
- “Dwelling replacement cost plus” provides extended coverage under a home insurance policy.
More: Nationwide Car Insurance Review
BEST FOR LOW LEVEL OF COMPLAINTS – Auto-Owners – Compare Rates
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Average bundling discount – 10%
Auto insurance complaint level – Low
Home insurance complaint level – Very low
Experts’ Take
We like Auto-Owners because it has a low level of complaints about its auto and home insurance. These low complaint levels indicate that Auto-Owners efficiently handles issues that arise so they don’t turn into complaints.
- Competitive home and auto insurance rates.
- Optional home insurance coverage of water backup, extended or guaranteed replacement cost.
- Car insurance add-on options of accident forgiveness, diminishing deductible, gap insurance and new car replacement.
More: Auto-Owners Car Insurance Review
BEST FOR MILITARY MEMBERS & VETERANS – USAA – Compare Rates
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Average bundling discount – 6%
Auto insurance complaint level – Low
Home insurance complaint level – Very low
Experts’ Take
We like USAA for those in the military community because of its cheap auto and home insurance rates for military members, veterans and their immediate families. USAA sells exclusively to the military community so it understands their specific needs.
- Cheapest average rate for good drivers among the companies we analyzed.
- Has a low level of auto insurance complaints and a very low level of home insurance complaints.
- Auto insurance options for accident forgiveness and new car replacement are available.
- No banned dog list.
- Offers extended replacement cost for dwellings coverage for home insurance.
More: USAA Car Insurance Review
Pros and Cons of Bundling Home and Auto Insurance
Bundling home and auto insurance policies with one company has advantages but isn’t always the best option.
Pros of Bundling
Save Money. The average discount is 14%, which is a savings of around $466 a year, according to our analysis.
Save Time. Having only one insurance company to deal with for payments and customer service is convenient and can save you time.
Multiple Policies, One Account. Many insurers let you manage your bundled home and auto policies under one online account or mobile app.
Have a Single Deductible. Some companies, such as Progressive, apply one deductible to bundled home and auto policies if your house and car are damaged in one event. For instance, if a storm causes a tree to fall, damaging both your car and home you’d pay one single deductible for the claim.
Cons of Bundling
Not Always the Best Buy. You may be able to find cheaper prices for auto and home insurance policies by buying them separately from different companies. It pays off to compare home and car insurance quotes from multiple insurance companies to find the best overall price.
Not Always More Convenient. If your car insurance company doesn’t sell home insurance and instead partners with a different company, you may still be able to get a bundle discount but you won’t get perks like having one account. Instead, you still deal with two companies for payments, services and claims. For example, Geico home insurance comes from partner companies.
Might Not Fit Your Needs. If you want certain coverage types that aren’t available from a company that bundles, it’s better to stick with a company that gives you the coverage you want. For example, not all home insurance companies offer an extended replacement cost option, which provides a higher reimbursement if you need to rebuild your house.
Who Offers the Biggest Home and Auto Bundling Discount?
State Farm offers the biggest home and insurance bundling discount with an average savings of 23% per year.
The average auto and home insurance bundling discount is 14%, according to Forbes Advisor’s analysis of ten large insurance companies. That comes out to an average savings of $466 a year.
Average Home and Auto Bundling Discount by Company
The Cheapest Home and Auto Insurance Quotes
Auto-Owners has the cheapest car and home insurance quote for bundled coverage, according to our analysis of large insurance companies. Auto-Owners’ average annual bundled cost is $1,878 per year.
It’s wise to shop around for the best overall final price, as the rates from Auto-Owners show. Although its average bundling discount is only 10%, Auto-Owners final total price is the lowest among the companies we evaluated.
Cheapest Home and Auto Bundle Quotes
What To Look for When Choosing an Insurance Company
Here are factors to consider when choosing an insurance company and wish to bundle your home and auto insurance.
A Bundling Discount?. See if you can bundle the policies with the same insurer when shopping for car and home insurance. Most insurance companies that sell auto and home insurance are happy if you buy both and will give you a decent auto and home insurance bundling discount.
A Single Deductible. A deductible is the amount deducted from an insurance claims check. If you choose higher deductibles, your home or auto insurer pays out less for a claim, so you get a cheaper price on your policy. Some insurers offer a single deductible, which means paying only one deductible if both your home and car are damaged in the same event.
Coverage That Meets Your Needs. Bundling home and auto insurance can be convenient but may not give you the lowest price or meet all your needs. Evaluate both coverage and price before purchasing your policies. Bundling isn’t worthwhile if it isn’t fulfilling your coverage needs.
Competitive Overall Cost. Look at the final bundled cost (and any other insurance you also want to buy, such as umbrella insurance). Bundling with one company isn’t always the cheapest option.
Related: Auto and Renters Insurance Bundle
EXPERT TIPS
How To Save Money When Bundling Home and Auto Insurance
Les Masterson – Insurance Editor
Compare Quotes
Comparing car and home insurance quotes from at least three different companies is one of the best ways to save money. I check the costs for both bundled and individual policies to see which gives me the best deal.
Remember to get car and home insurance quotes for the same coverage and deductible limits so you’re comparing apples to apples.
Penny Gusner – Insurance Senior Writer
Get All the Discounts You’re Eligible For
Look over your quotes to see what discounts you received. I suggest contacting the insurers to see if there are other discounts you’re eligible for or can get if you make changes. For instance, going paperless may get you a small discount to lower car insurance costs.
Michelle Megna – Insurance Lead Editor
Shop Regularly
Rates for home and auto insurance fluctuate. I recommend shopping around for quotes regularly so you can be confident that you’re getting a great price.
Before comparison shopping, I advise reviewing your coverage choices to verify they still fit your needs. For instance, if your car is older, it may be time to drop collision and comprehensive insurance.
Complaints Against Auto and Home Insurance Companies
Complaints collected nationwide against auto and home insurance companies expose problem areas for some insurers. The National Association of Insurance Commissioners calculates a complaint ratio for each company that reflects the number of complaints in relation to each insurer’s size of business.
For auto insurance, the best companies for bundling in our analysis have the complaint levels that are below the industry average.
For home insurance, Auto-Owners, Erie and USAA are well below the national average. Nationwide is just below the industry average and State Farm is slightly above.
Methodology
To identify the best home and auto insurance bundles we evaluated each company based on these factors:
Bundling discount (40% of score): We used data from Quadrant Information Services to find the average bundling discount for each company.
Auto insurance rates (20% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers. Rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Home insurance rates (20% of score): We used data from Quadrant Information Services to find average rates for each insurance company for homes with dwelling coverage of $350,000.
Complaints about auto insurance (10% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance logs and monitors complaints against companies. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.
Complaints about home insurance (10% of score): We used complaint data from the National Association of Insurance Commissioners. Most home insurance complaints center on claims, including unsatisfactory settlements, delays and handling of the claim.
Read more: How Forbes Advisor rates car insurance companies
Other Home and Auto Insurance Companies We Rated
Here are other auto and home insurance companies we analyzed as part of our analysis.
Home and Auto Insurance Bundles Frequently Asked Questions (FAQs)
Is it worth it to bundle home and auto insurance?
You will know if it’s worth bundling your home and auto insurance once you get insurance quotes to see if it’s cheaper than buying individual policies.
The bundling discount is usually quite good, but there is no guarantee that bundling policies will be cheaper than buying individual policies from separate companies.
Why do insurance companies want you to bundle?
Insurance companies like it when you bundle auto and home insurance policies because they have more of your business. Also, people who bundle their home and auto insurance tend to stay with that company longer.
Insurance companies like customers who are loyal and continue to buy insurance from them year after year. In return, most companies that bundle homeowners and car insurance try to make it convenient and easy for policyholders to manage their policies and bills through one account.
What is homeowners insurance?
Homeowners insurance pays to repair or rebuild your house and repair or replace personal property—from clothes to furniture to electronics—due to damage from problems covered by your policy. There are a wide variety of problems covered by home insurance, such as fire, smoke, theft, tornadoes and vandalism.
Home insurance also includes liability insurance—which pays for accidental property damage or injuries to others that you’re found responsible for—and additional living expenses when your home is inhabitable due to a covered issue. Homeowners insurance is essential to protect your investment in your home.
What is car insurance?
Car insurance is a policy that often contains a few types of important coverage. Liability car insurance, which pays out to others when you’re liable for an accident, is required in most states.
Full coverage car insurance includes liability coverage plus coverage for damage to your vehicle. Collision and comprehensive coverage will pay for the repairs or total loss of your car from problems such as fire, theft, vandalism, damage from severe weather, floods, falling objects or striking an animal.
What insurance policies can be bundled together?
Auto and home insurance bundles are the most common, but you may also bundle auto insurance with renters insurance, boat and RV insurance, and even life insurance. You can generally get a multi-policy discount for bundling together most any two (or more) types of insurance a company offers.
Insurance policy types you may be able to bundle, depending on your insurance company, can include:
• Auto
• Boat
• Condo
• Home
• Life
• Motorcycle
• Renters
• RV
• Small business
• Umbrella
Next Up In Car Insurance
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Penny Gusner – Insurance Writer and Analyst
Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.