Paying for car insurance and homeowners insurance separately? You could be leaving hundreds—or even thousands—of dollars on the table each year. Bundling these policies with a single insurer typically unlocks multi-policy discounts that can significantly reduce your annual premiums without sacrificing coverage quality.
According to recent industry analyses, homeowners who bundle their auto and home insurance save an average of 14% to 17% on their combined premiums. That translates to roughly $466 to $783 in annual savings for the typical policyholder. Some providers offer even steeper discounts—up to 25% off—making bundling one of the most effective strategies for cutting insurance costs.
But not all bundle deals deliver equal value. The best option depends on your specific circumstances: your driving record, home age and location, coverage needs, and even your military status. This comprehensive guide examines the top insurance companies for bundling, breaks down average savings by provider, and helps you determine whether combining policies makes financial sense for your situation.
Understanding Insurance Bundling: How Multi-Policy Discounts Work
Insurance bundling means purchasing multiple policies—typically auto and homeowners coverage—from the same insurance company. When you consolidate your policies this way, insurers reward your loyalty with a multi-policy discount that reduces your overall premium costs.
The concept benefits both parties. For insurers, bundling increases customer retention and reduces administrative costs associated with managing multiple policies. For policyholders, it simplifies insurance management by consolidating billing, renewals, and claims under one provider while delivering meaningful cost savings.
Most major insurers offer bundle discounts ranging from 5% to 30% off your combined premiums. The exact percentage varies by company, state regulations, and individual risk factors. Beyond the discount itself, bundling often provides additional perks such as single-deductible claims (when both your car and home are damaged in the same incident) and streamlined customer service.
Top Insurance Companies for Auto and Home Bundles
After analyzing hundreds of rates and comparing discount structures across major insurers, several companies consistently deliver strong value for bundled policies.
State Farm: Best Overall for Bundling
State Farm earns top marks for bundling thanks to its industry-leading discount and competitive baseline rates. According to a 2024 analysis by Insure.com, State Farm offers an average multi-policy discount of 24%, saving customers approximately $938 annually. The company also posted the lowest average bundled annual rate at $2,853.
Beyond attractive pricing, State Farm provides extensive coverage options and operates in all 50 states. Policyholders appreciate the company’s widespread agent network and straightforward claims process. The insurer ranks as the No. 2 cheapest provider for homeowners insurance and maintains solid customer satisfaction scores despite some variability in service experiences.
State Farm’s bundle works particularly well for customers seeking simplicity and value in a single package. You can add life insurance or other policies for additional multi-policy savings.
USAA: Best for Military Members and Veterans
If you qualify for membership, USAA delivers exceptional value that’s hard to beat. This provider serves active duty military personnel, veterans, and their families exclusively, offering an advertised bundle discount of up to 10%.
Even without aggressive discount percentages, USAA consistently ranks as both the cheapest home insurance and cheapest auto insurance provider overall. The company earned a 4.6 U.S. News rating for bundled policies and maintains impressively low complaint levels with the National Association of Insurance Commissioners (NAIC).
USAA policies include military-specific benefits unavailable elsewhere, such as coverage for gear used on deployment and flexible payment options during military deployments. Customer satisfaction ratings consistently place USAA at or near the top of industry rankings.
The catch? You must have an eligible military connection to access USAA’s services. For those who qualify, however, the combination of low base rates, solid discounts, and specialized coverage makes USAA the clear choice.
Nationwide: Best for Affordable Coverage Across the Board
Nationwide strikes an excellent balance between discount generosity and baseline affordability. The company offers an 18% average bundling discount, translating to approximately $777 in annual savings according to Insure.com’s analysis. Forbes Advisor’s research found Nationwide’s discount at 15% with $516 in savings, showing consistency across multiple methodologies.
What sets Nationwide apart is its low complaint levels for both auto and home insurance, indicating reliable customer service and claims handling. The insurer ranks No. 5 for car insurance and No. 9 for home insurance in U.S. News ratings, with particularly competitive rates for drivers with poor credit histories.
Nationwide allows significant customization of your coverage with numerous add-on options, making it suitable for homeowners with unique needs. The company operates in most states and offers convenient online quote tools.
Erie Insurance: Best for Add-On Coverage Options
Erie Insurance may not have national name recognition, but it delivers strong value in the states where it operates. The company offers a 15% average bundling discount and maintains exceptionally low complaint ratios for both auto and home insurance.
Erie excels at providing extensive optional coverage endorsements, allowing policyholders to tailor policies to their specific situations. The insurer’s customer satisfaction scores consistently rank above industry averages, particularly for claims handling and policy servicing.
One limitation: Erie only operates in 12 states and the District of Columbia, primarily across the Mid-Atlantic and Midwest regions. If you live within Erie’s service area, however, it’s worth requesting a quote.
Auto-Owners: Best for Minimal Complaints
Auto-Owners stands out for its remarkably low complaint levels—the company received fewer complaints than expected based on its market share in both auto and home insurance categories. This suggests strong customer satisfaction and reliable service delivery.
The insurer offers a 10% average bundling discount, which appears modest compared to competitors. However, Auto-Owners posted the cheapest bundled annual cost at $1,878 in Forbes Advisor’s analysis, making it competitive on overall affordability despite a smaller percentage discount.
Auto-Owners provides particularly good value for owners of older homes and parents of teenage drivers, two groups that often face steep insurance premiums. The company operates in 26 states, mostly in the Midwest and Southeast.
Be aware that Auto-Owners typically requires working with an independent agent rather than offering online quotes directly.
How Much Can You Really Save by Bundling?
Industry research consistently shows substantial savings potential when bundling auto and home insurance, though exact figures vary based on methodology and the companies analyzed.
Forbes Advisor’s January 2026 analysis of 672 rates from nine major insurers found an average bundling discount of 14%, equating to $466 in annual savings. Insure.com’s nationwide study reported a higher average discount of 17% and $783 in annual savings. These differences reflect variations in the insurers studied, state-by-state pricing, and the hypothetical customer profiles used for quotes.
Breaking down savings by specific insurers reveals wider variation:
Highest Percentage Discounts:
- State Farm: 23-24% average discount
- Nationwide: 15-18% average discount
- Farmers: 18% average discount
- American Family: 17-18% average discount
- Allstate: 15-16% average discount
Largest Dollar Savings:
- Farmers Insurance: $1,111 average annual savings
- State Farm: $787-$938 average annual savings
- Nationwide: $777 average annual savings
- American Family: $486-$685 average annual savings
Keep in mind that your personal savings will depend on numerous factors: your location, driving history, home age and value, coverage levels, and credit score. The advertised discount applies to your combined premium, so someone paying higher baseline rates will see larger dollar savings even with the same percentage discount.
Some insurers also cap their multi-policy discounts. Progressive, for instance, advertises savings of “up to 25%” for new customers but averages only 7% according to independent analyses. Always request personalized quotes to understand your actual savings potential.
When Bundling Makes the Most Financial Sense
While bundling delivers savings for many households, it’s not universally the best choice. Several scenarios make bundling particularly advantageous:
You qualify for multiple discounts. Bundling works best when combined with other available discounts such as claim-free history, security device installation, or loyalty rewards. Stacking multiple discounts can dramatically reduce your premiums.
You value convenience over marginal savings. Managing all your insurance through one company simplifies renewals, billing, and claims. If you prefer streamlined administration and don’t want to juggle multiple insurers, the convenience may justify slightly higher costs.
Your home and driving risk profiles align. If you’re a low-risk driver with a well-maintained home in a safe neighborhood, bundling often delivers competitive rates. Insurers view low-risk customers favorably and offer better pricing.
You own your home and vehicles outright. Without lender requirements dictating coverage minimums, you have more flexibility to adjust deductibles and coverage levels across both policies to maximize savings.
Conversely, bundling may not make sense if you have significantly different risk profiles for auto versus home coverage. For example, if you’re a high-risk driver but a low-risk homeowner, you might save more by purchasing specialized coverage from different insurers rather than accepting a bundled package.
How to Find the Best Bundle for Your Needs
Securing the optimal bundle requires comparison shopping across multiple providers. Follow these steps to identify your best option:
Request quotes from at least three insurers. Include both bundled and separate policy quotes to compare total costs. Don’t assume bundling automatically delivers the lowest price.
Compare coverage details, not just premiums. A cheaper policy with significant coverage gaps may cost more in the long run if you need to file a claim. Review policy limits, deductibles, and exclusions carefully.
Ask about all available discounts. Beyond multi-policy savings, inquire about discounts for security systems, bundling with life insurance, claim-free history, paperless billing, and automatic payments.
Check complaint ratios. The NAIC maintains a complaint index comparing each insurer’s complaints relative to their market share. A ratio above 1.0 indicates more complaints than expected; below 1.0 suggests fewer complaints.
Consider working with an independent agent. Independent agents represent multiple insurers and can quote competitive options simultaneously. They often identify opportunities you might miss shopping on your own.
Review your bundle annually. Insurance markets change, and new competitors may offer better rates. Reassess your bundle each year before renewal to ensure you’re still getting optimal value.
Additional Strategies to Maximize Your Savings
Beyond bundling, several tactics can further reduce your insurance costs:
Increase your deductibles. Higher deductibles lower your premiums. Just ensure you can afford the out-of-pocket expense if you need to file a claim.
Improve your credit score. Most states allow insurers to use credit-based insurance scores when setting rates. Better credit typically means lower premiums.
Install protective devices. Security systems, smoke detectors, and storm shutters may qualify for discounts on home insurance. Similarly, anti-theft devices and safety features reduce auto premiums.
Maintain continuous coverage. Gaps in insurance history trigger higher rates. Keep at least minimum coverage even when you’re not driving regularly.
File claims strategically. For minor damage below your deductible or slightly above it, paying out of pocket may be cheaper than accepting a rate increase after filing a claim.
Stay loyal—to a point. Some insurers reward long-term customers with loyalty discounts. However, don’t stay loyal if competitors offer significantly better rates. Shop around every few years.
Common Bundling Pitfalls to Avoid
While bundling offers clear advantages, watch out for these potential issues:
Coverage gaps. Not all insurers excel at both auto and home coverage. An insurer might offer great car insurance but mediocre homeowners policies. Evaluate each policy independently.
Poor claims experience. Some companies prioritize competitive pricing but provide subpar claims service. Research customer satisfaction ratings and complaint data before committing.
Inadequate coverage limits. Don’t sacrifice necessary coverage to achieve a lower bundled price. Ensure your dwelling coverage accurately reflects your home’s replacement cost and your liability limits adequately protect your assets.
Automatic renewal complacency. Bundling creates inertia—it’s easy to let policies auto-renew year after year without comparison shopping. Set annual reminders to evaluate alternatives.
State-specific variations. Insurance pricing and regulations vary significantly by state. A company that’s competitive in one state may be expensive in another. Always get quotes based on your specific location.
The Bottom Line on Insurance Bundling
For most homeowners, bundling auto and home insurance delivers measurable savings—typically 14% to 24% off combined premiums, or $466 to $938 annually. State Farm, Nationwide, and USAA consistently rank among the best options for bundled policies, offering competitive discounts alongside strong coverage and customer service.
However, bundling isn’t universally optimal. The best approach combines comparison shopping across multiple insurers, evaluating both bundled and separate policy options, and regularly reassessing your coverage as your circumstances change.
Take time to request personalized quotes, examine coverage details beyond just premium costs, and verify insurer reliability through complaint data and customer reviews. The effort you invest in finding the right bundle can pay dividends for years through lower premiums and better protection when you need it most.
Ready to start saving? Request quotes from State Farm, Nationwide, and at least one other highly-rated insurer in your state. Compare the bundled costs against separate policies and evaluate which option delivers the best combination of price, coverage, and service for your unique situation.