Bundling Home and Auto Insurance: Average Savings & Best Companies

How Bundling Home and Auto Insurance Works

Bundling home and auto insurance means purchasing both your homeowners policy and your auto policy from the same insurance carrier. In exchange for consolidating your business, the insurer rewards you with a multi-policy discount that is typically applied to one or both premiums. The discount is automatic in most cases. Once both policies are active under your name, the rate reduction kicks in at renewal or inception.

It's important to understand that bundling doesn't merge your policies into one. Your home and auto coverage remain separate contracts with distinct deductibles, limits, and terms. What you gain is a financial incentive for loyalty, plus a streamlined experience managing both under the same company.

Here's a quick look at what bundling typically includes:

Many insurance companies also bundle additional policies like umbrella, renters, life, or motorcycle alongside your home insurance policy for even deeper discounts. According to a 2026 Kin Insurance survey, 61% of American homeowners bundle their home and auto insurance policies, while 36% don't and 4% aren't sure. Interestingly, J.D. Power data shows the share of auto customers who also hold homeowners with the same carrier has fallen from close to 60% a decade ago to about 38% by 2025, meaning many drivers are still leaving money on the table.

How Much Can You Save? Average Bundle Discounts by Company in 2026

Most consumers can realistically expect to save 10% to 25% on their combined premiums when bundling home and auto in 2026, with the national average landing between $542 and $869 per year (roughly 13% to 15%) according to MoneyGeek, Insurify, and Insurance.com analyses. Insurance.com research finds you save about 15%, or $869 annually, when you bundle home and car insurance, while MoneyGeek's 2026 analysis of seven national carriers puts the average savings closer to $542 per year, with State Farm delivering the largest discount at 25% ($847 in annual savings) and Progressive averaging just 6% ($223). The table below breaks down what the top carriers typically offer this year.

State Farm

State Farm advertises average annual per-household savings of up to $1,429 when bundling auto and home, based on a 2025 national survey of new policyholders. MoneyGeek's 2026 analysis pegged State Farm's actual bundle discount at 25% (roughly $847 in annual savings), the largest realized savings among seven major national carriers studied. Its base rates are often competitive before any discount is applied, which makes the overall bundle cost attractive. Learn more in our State Farm vs Allstate comparison.

Allstate

Allstate offers one of the most clearly published bundle discounts at up to 25% off combined premiums. For customers with higher home insurance needs, this percentage can translate into significant annual savings, often several hundred dollars per year.

Liberty Mutual

Liberty Mutual offers the largest average bundling savings at $950 per year and provides a discount just for being a homeowner. This is an estimate, not a guarantee, but it's among the larger dollar figures advertised nationally by major carriers in 2026.

Farmers and American Family

Forbes Advisor and NerdWallet's 2026 analyses show Farmers home insurance offering bundle savings averaging around 19% to 24%, plus a newly approved 22% California home-and-auto discount effective September 15, 2026. American Family advertises up to 40%, the highest bundle discount on NerdWallet's 2026 list, followed by Amica at up to 30%, though actual realized savings vary by state and profile.

Progressive

Progressive home insurance is sold through partner underwriters, so terms vary widely. MoneyGeek's 2026 study found Progressive's average bundle discount at just 6% (about $223/year), though the company reports higher combined savings for customers who bring over both policies at inception.

GEICO

GEICO bundles auto with home coverage through partner insurers like Chubb, Homesite, Liberty Mutual, and Travelers, meaning you may still receive separate bills. Combined savings depend heavily on which underwriter handles your home.

Pros and Cons of Bundling Home and Auto Insurance

Before committing to a bundle, it's worth weighing the full picture. There are genuine benefits, but also real drawbacks that many consumers overlook, especially as both home and auto premiums have surged in recent years.

When Bundling Makes Sense

Bundling is generally the right move when:

• You've verified the total bundled cost is lower than the best separate-carrier combination
• Your home insurance premium is high (expensive home, elevated risk area, high limits), making a 10 to 25% discount on the larger premium meaningful
• You want simplicity and a single point of contact, especially if you're in a region prone to storms that could affect both your car and home simultaneously
• You have standard, non-specialized coverage needs that one mainstream insurer handles well

When Shopping Separately Makes More Sense

Keeping your policies with different companies is often the better financial choice when:

• Separate quotes are cheaper in total, even after accounting for bundle discounts
• You're a high-risk driver (recent accidents, DUI, teen drivers) and need a specialist auto insurer
• Your home is in a wildfire, hurricane, or flood-prone area where specialized or surplus-lines coverage is required. Many homeowners in California, Florida, and Louisiana now rely on the Excess & Surplus market or state FAIR plans, which typically don't offer bundled auto
• You qualify for strong line-specific discounts from different carriers that outweigh any bundle savings

Learn more about how to compare home insurance policies so you can better evaluate what coverage you actually need before bundling.

How to Evaluate If a Bundle Actually Saves You Money

The only reliable way to know if bundling saves money is to compare total annual cost, not just the advertised discount percentage. Follow this process before making a decision.

Step-by-Step Bundle Evaluation

Step 1: Gather your current declarations pages Note your existing coverage limits, deductibles, and any endorsements for both home and auto.

Step 2: Define your target coverage Set minimum limits and deductibles you're not willing to compromise on. This ensures apples-to-apples comparisons.

Step 3: Collect three types of quotes

Step 4: Build your comparison table

Step 5: Eliminate quotes with reduced coverage If any quote is cheaper only because it lowered your liability limits or raised your deductible, adjust it to match your target coverage before comparing. With Insurify projecting the average annual cost of home insurance will rise another 4% to $3,057 by the end of 2026 after jumping 12% in 2025, being underinsured is a serious risk.

What Happens When You File Claims on Both Policies?

If one event like a hailstorm or falling tree damages both your home and your car, having both policies with the same insurer provides a meaningful advantage:

• One call to report both claims instead of contacting two separate companies
• One adjuster may handle both claims, reducing delays and back-and-forth
• Possible single deductible if your bundle policy includes this feature (not all do, so confirm before assuming)
• The insurer can more easily coordinate what falls under the home policy vs. the auto policy since all data is in one system

Even when bundled, home and auto are rated separately. A home claim typically won't directly raise your auto premium and vice versa, though a large claims history can affect your overall standing with the carrier.

2026 Regulatory and Market Updates Affecting Bundles

Several new 2026 state laws indirectly affect how bundles work, even though there's no federal mandate around bundling itself:

• New Jersey completed Phase II of its auto reform on January 1, 2026, raising minimum bodily injury liability limits to $35,000 per person and $70,000 per accident, with property damage liability remaining at $25,000. This raises the base auto policy you bundle. On December 30, 2025, the New Jersey Department of Banking and Insurance issued Order No. A25-11, requiring insurers with homeowners or private-passenger auto policies to submit any changes to underwriting guidelines within 5 days of implementation during 2026, which gives regulators more visibility into non-renewals and eligibility changes.
• Louisiana now requires auto insurers to prominently display the prior premium alongside the new premium at renewal, making it easier to spot rate creep on a bundled policy.
• California homeowners in wildfire ZIP codes continue to face limited bundling options as private insurers pull back. Stanford-linked research finds average California homeowner premiums rose 84% between late 2020 and March 2026, and the FAIR Plan now writes nearly 10% of residential policies statewide. Since the FAIR Plan only provides limited fire coverage (primarily fire, smoke, lightning, and internal explosion) and does not include liability, theft, water damage, or broader HO-3 protections, most at-risk homeowners now piece together coverage with a surplus-lines "wrap" instead of a traditional bundle.

These rules don't change bundle discounts directly, but they give you more visibility into pricing and more time to react if a carrier drops one of your bundled policies. For broader cost-cutting strategies beyond bundling, see our guide on 15+ home insurance discounts or explore why home insurance premiums keep rising.

Frequently Asked Questions

Is bundling home and auto insurance always worth it?

Not always. While most consumers save 10% to 25% on combined premiums, the bundled price from one carrier can sometimes exceed the total cost of buying each policy from a specialist. The key is to compare total annual cost, not just the advertised discount, before making a decision. Always request separate and bundled quotes simultaneously for a true apples-to-apples comparison.

How much do you actually save bundling home and auto insurance in 2026?

Most consumers save between $542 and $869 per year according to MoneyGeek and Insurance.com's 2026 analyses, which works out to roughly 13% to 15% off combined premiums. State Farm leads the pack with realized savings averaging $847 per year, while Liberty Mutual advertises around $950 in average savings. Actual savings vary significantly based on your state, risk profile, home value, and driving record.

Which insurance company offers the best bundle discount?

State Farm offers the highest realized dollar savings at roughly $847 to $1,429 per year, while American Family advertises the highest percentage at up to 40%. Allstate offers up to 25% off combined premiums, and Farmers averages 19% to 24% depending on the analysis. That said, the best company for you depends on your specific premiums and location, so always get quotes from multiple carriers.

What happens if I want to leave a bundled insurer?

If you need to cancel one policy in your bundle, the remaining policy will typically lose the multi-policy discount and your rate will increase at the next renewal. You'll essentially be shopping both policies again to find a competitive arrangement. Before canceling, compare new quotes for both policies so you can switch cleanly without a coverage gap.

Can you bundle home and auto if your home is in a high-risk area?

It depends on the carrier. If your home is in a California wildfire zone, Florida hurricane-prone area, or Louisiana flood plain, you may need surplus lines insurance or a state-assigned FAIR plan, neither of which typically offers bundled auto coverage. In these cases, you may have no choice but to keep your home and auto policies separate. Always check with multiple insurers and consider ways to find cheap home insurance before assuming bundling isn't possible.