How to Bundle Insurance

Quick Answer

Bundling insurance is when you purchase multiple types of insurance policies from one insurance company to save money. You can bundle home, auto, life and other types of insurance, depending on what bundles the insurance company offers.

Happy insurance agent communicating with a couple during a meeting in the office.

Looking for ways to save on home and auto insurance? You may be able to save if you bundle insurance by purchasing two or more types of insurance policies from the same company.

While home and auto insurance are the most common bundling combination, most insurance carriers let you bundle other kinds of coverage too. Here's how to bundle insurance, and potentially save money when you do.

What Insurance Policies Can You Bundle?

You can generally bundle the following kinds of insurance:

  • Homeowners insurance and auto insurance
  • Renters insurance and auto insurance
  • Condo insurance and auto insurance
  • Auto insurance and motorcycle, boat, mobile home or RV insurance
  • Auto, home and life insurance
  • Auto insurance and umbrella insurance
  • Auto insurance and small business insurance

Although it's less common, you may be able to bundle pet insurance. For example, Lemonade sells auto, homeowners, renters, life and pet insurance and offers discounts when you purchase any two policies.

Because bundling requires purchasing multiple policies from the same insurance company, your options are limited by what the insurer sells. For instance, you can't bundle medical or dental insurance with auto or home insurance, because health insurers generally don't sell auto or home insurance.

To find out what type of bundling an insurance company offers, visit their website and look for information about discounts. If you don't see bundling offered for the insurance products you're interested in, contact the company to check—it never hurts to ask.

How to Bundle Insurance

Ready to see if bundling insurance could save you money? Here's what to do.

  • Start with your current insurance providers. Contact the companies that currently handle your home and auto insurance to see if they offer bundles and get quotes. Also ask about any other discounts you might qualify for.
  • Get quotes from other insurance companies. Check prices for both individual insurance policies and bundled policies, being sure to compare the same type and amount of coverage. You can get quotes by visiting insurance company websites or contacting an insurance agent or broker. Save time by using Experian's insurance comparison tool to efficiently gather quotes from dozens of insurance providers in one place.
  • Compare quotes and coverage. Price isn't the only factor in choosing an insurance provider. In addition to potential savings, evaluate the coverage each insurer provides, as well as their reputation for customer service.
  • Consider any special insurance needs. Even if it saves money, bundling isn't for everyone. For instance, if you have lots of speeding tickets or a DUI on your record, you might be better off with a car insurance company that specializes in high-risk drivers than one that offers bundling.
  • Apply for insurance. After making your selection, you'll need to fill out an application for insurance and pay your premiums.
  • Cancel your previous coverage. Once your bundled coverage takes effect, cancel your old insurance. Find out how any refund of your premiums will be issued.

Which Insurance Companies Allow You to Bundle?

Major insurance companies that let you bundle insurance include:

  • AAA
  • Allstate
  • American Family Insurance
  • Farmers
  • Geico
  • Progressive
  • Liberty Mutual
  • Nationwide
  • State Farm
  • Travelers
  • USAA

Does Bundling Insurance Save Money?

Bundling insurance can save you a lot of money. Consider these examples:

  • Home and auto: Allstate estimates you can save up to 25% by bundling home and auto policies.
  • Home, auto and life: AAA says you can save up to 19.4% on car insurance and up to 20% on home insurance when you bundle these three policies. (Industry regulations prohibit discounting bundled life insurance.)
  • Renters and auto: State Farm says customers can save as much as $704 when they bundle renters and car insurance.

Your savings from bundling can vary depending on a range of factors, including your coverage amounts, risk levels and location. For example, insurance customers in California typically won't see that 25% discount; on average, California residents save just 2% from bundling home and auto coverage, according to Allstate.

Learn more >> What Factors Affect Car Insurance Rates?

The Bottom Line

Bundling is just one way to save money on insurance. You can also reduce your premiums by raising your deductibles, exploring available discounts for auto and homeowners insurance, and regularly shopping around. Experian's auto insurance comparison tool makes it easy to gather quotes from dozens of auto insurance providers, so you can quickly see how much switching might save you.

Having good credit could help you save on insurance too. Insurance companies in most states can check your credit-based insurance score when you apply for insurance. Higher scores typically translate to lower premiums. Credit-based insurance scores differ from FICO® Scores but are based on much of the same information. Checking your credit score could reveal whether you could benefit from improving your credit, which can help lower the cost of insurance.