February 5, 2020

How to Bundle Auto and Renters Insurance

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Save an average of $800 by bundling your auto and renters insurance. Find out which insurer offers the best savings on bundled insurance.

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If you have auto and renters insurance through different companies, combining them under one insurer can save money. Many companies offer multi-policy discounts when you bundle coverages.

The best place to start is by comparing prices with your current insurers. For each, find out the amount of their multiple policy discount and then get a bundled quote that includes both policies.

Just be careful when you compare. If one company offers a greater multi-policy discount but the policy rates are more expensive, you may end up paying more overall.

How Much Money Can I Save by Bundling?

Most multi-policy discounts range from 10% to 25% for bundling two policies. By bundling auto and renters insurance, you can save an average of $200 to $800 a year.

Consider: A standalone renters insurance policy costs an average of $200 a year. That's for $40,000 personal property coverage, $100,000 liability coverage, and a $1,000 policy deductible.

A standalone auto insurance policy costs an average cost of $1,625 a year. That's for full coverage, which includes comprehensive, collision, and liability insurance.

But the average cost of bundling these policies is $1,642, a savings of almost $200.

Of course, your savings will vary by insurer. Here's a look at auto and renters bundling discounts from several popular companies.

  • American Family: Up to 29%
  • Allstate: Up to 25%
  • Nationwide: Up to $700 a year
  • State Farm: Up to 17%
  • Travelers: Up to 15%
  • Progressive: Up to 10%

Multi-policy discounts are even greater when you bundle more than two policies. But you should always shop around. Here's why:
  • The price of car insurance and renters insurance differs among property and casualty insurance companies.
  • The savings amount for bundling your car and renters insurance differs among insurers.

Bundling Your Auto and Renters Insurance

Once you find an insurer with the best auto and renters insurance bundle, follow these steps to get your multi-policy discount.

If you're staying with one of your current insurers:

  • Call the insurer to add the other policy. For example, if you're staying with your auto insurer, call to add renters insurance. Write down the effective date for your new policy.

  • Cancel the policy with your other insurer. The cancellation date should match the effective date of your new policy to avoid a lapse in coverage. Some insurers charge more if you have a lapse.

If your auto or renters policy is up for renewal soon, consider waiting until then to make the switch. Policy renewal is the perfect time to comparison shop and get prices for bundling auto and renters insurance.

If you're switching to a new insurance company:

  • Contact your current insurance company to inform them of the cancellation. Some insurers require written notice at least 30 days in advance. Be sure to make a note of the cancellation date your insurance company provides you.

  • Call the insurer you are switching to and secure your auto and renters insurance policies. You can also apply online after receiving a quote. Set the start date of your new policies for the same day your policies end with your former insurer.

Ask about a cancellation fee. Some insurers penalize you for canceling your policy prior to its end date.

Best Home and Auto Insurance Bundles

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The best renters and auto insurance bundles are those that combine low rates with great coverage. They also have a generous multi-policy discount, along with other discounts.

Ranked from lowest to highest in price, the top insurance companies with the best and cheapest auto and renters insurance bundles are:

  1. Nationwide
  2. Farmers Insurance
  3. GEICO
  4. Progressive
  5. Liberty Mutual
  6. State Farm
  7. Allstate

Read on to learn more about each auto and renters insurance bundle.

What is the cheapest auto and renters insurance company?
When it comes to finding the cheapest auto and renters insurance, value is as important as price. Some inexpensive insurance policies won't provide adequate coverage, which can cost more in the long run.

The top 3 companies with the cheapest rates based on value are:

  • Liberty Mutual
  • Farmers Insurance
  • Progressive

Nationwide

On average, Nationwide Insurance has the lowest cost for auto and renters insurance bundles. The rate for auto insurance with renters insurance is $1,215, which reflects a 25% multi-policy discount.

The average savings for an auto and home insurance bundle is $710 per year.

Farmers

Coming in second with the lowest average bundled rate is Farmers Insurance. Farmers' rate for auto insurance with renters insurance is $1,325.

Farmers applies its multi-line discount to both your auto and renters insurance. The discount amount depends on the state where you live.

GEICO

GEICO Insurance has the third-lowest auto and renters insurance bundle rate. The average rate for bundling car and renters insurance is $1,345.

GEICO offers up to 25% in savings with its multi-policy discount. The discount applies to your car insurance.

Progressive

Progressive Insurance is in the middle of the pack when it comes to the cost of its bundled auto and renters insurance policies. Progressive's average rate for auto insurance bundled with renters insurance is $1,375.

The average savings from bundling auto and home is $1,029 per year. Progressive applies its multi-policy discount when you bundle any combination of two or more policies.

The discount amount is up to 5% on auto insurance policies and 10% or more on home insurance policies.

Liberty Mutual

The cost of an auto and renters insurance bundle from Liberty Mutual Insurance is a bit higher. The average rate is $1,385.

A bundled policy qualifies for Liberty Mutual's multi-policy discount. The savings are awarded for any combination of two or more Liberty Mutual insurance policies. The amount of the multi-policy discount varies by state.

State Farm

State Farm Insurance is among the companies with the highest rate for an auto and renters insurance bundle. The average cost for a bundled auto and renters policy is $1,395.

State Farm applies its multiple line discount to both auto and renters policies. The discount amount is up to 17%. The average bundled savings on an auto and home policy is $854.

Allstate

Of the top companies with the best coverage and cheapest bundled auto and renters insurance, Allstate Insurance is the highest. Allstate's average bundled rate is $1,485.

Allstate applies its multi-policy discount to all bundled policies. For example, when you bundle auto and home, you get up to 10% off your auto insurance and 25% off your home insurance premiums.

Is Auto and Renters Bundling Right for You?

Most people benefit from bundling their car and renters insurance. You SHOULD bundle your policies if:

  • You need multiple types of insurance.

  • Combined policies with one insurer is cheaper than what you're paying now for policies at separate insurers.

  • You are considered a higher risk for auto insurance.

  • You can't find cheaper rates anywhere for separate auto and renters policies.

  • You commit to doing a price comparison to avoid rate creep.

But bundling isn't right for everyone. If one of these situations apply to you, you may want to avoid combining your coverages:

  • You have a poor driving record and bad credit.

  • You have numerous claims filed in the past on both auto and renters insurance policies.

  • The insurer with the lowest cost for renters insurance does not have the lowest cost for car insurance.

  • No bundle matches your current coverages.

How to Avoid Rate Creep With Bundling
  • Do a price comparison every other year and get quotes from multiple companies. Ask for unbundled and bundled quotes for auto insurance and renters insurance.
  • Keep track of the cost of your bundled policy at renewal. If you notice a rate increase of 10% or more, it's time to shop around.
  • Take notice of any price changes when you have a life event, such as a move, new car, marriage, added a teen driver to your auto policy, etc.
  • Make sure your rate comes down three years after a ticket, at-fault accident, or moving violation.

Pros and Cons

Before bundling your auto and renters insurance, carefully consider the advantages and disadvantages of bundling.

Pros

  • Cheaper premiums
  • Pay one deductible and file one claim if a loss involves both your auto and where you rent
  • Insurer is less likely to drop you for making numerous claims
  • Easier policy management since you're dealing with one insurance company
  • Only one bill to pay

Cons

  • May not be covered for certain perils or risks
  • May need to add coverages you don't need
  • Some insurers may place one of your policies with a third-party insurance company, so you're dealing with two separate companies
  • May be cheaper options out there
  • Discourages comparison shopping for better individual policies or bundles
  • Not all insurance policies can be bundled

What information is needed to bundle auto and renters insurance?

You'll need to provide your insurer with some basic personal information to bundle your policies.

For Car Insurance:

  • Name, address, date of birth, driver's license number, and driving history of all household drivers being listed on the policy
  • Vehicle information, including type, style, and VIN, of all vehicles being covered under the policy
  • Prior insurance company

For Renters Insurance:

  • Name, address, and date of birth of all individuals living in the residence and their relationship to each other
  • Estimated value of your personal property
  • The net worth of all those living in the residence to determine liability limits
  • Any valuable items that need additional coverage

Is It Cheaper to Bundle Car and Home Insurance?

As long as an insurer offers a multiple policy discount, it is usually cheaper to bundle your car and home insurance—by as much as 33%. In fact, this is the largest multi-policy discount an insurance company provides.

How much cheaper depends on the insurance company. For the cheapest rates, look for insurers that:

  • Offer a large multi-policy discount, like 20% or more
  • Apply the discount to all policies, not just one
  • Apply one deductible to all policies

Comparison shopping is key when bundling insurance policies. Get multiple quotes from several insurance carriers. In addition to price, carefully compare coverages, limitations, and exclusions to be sure you're getting the best value.

10 Things to Know When Shopping for Insurance Bundles

  1. Start getting quotes before your existing policy expires.

  2. Know what coverages and coverages limits you want.

  3. Determine if the insurer offers the add-on endorsements or riders you need. For example, you may need a valuable items endorsement or an at-home business rider.

  4. Know how much of a policy deductible you can afford. This is the amount you have to pay out of pocket before your insurance company pays a claim.

  5. Get quotes from multiple insurance companies. Put national, regional, and independent insurance companies on your comparison shopping list.

  6. Carefully examine the quotes to determine what is and isn't covered.

  7. Check for other deductibles besides the policy deductible. For example, some insurers have a separate deductible for hurricane windstorm coverage.

  8. Check how the bundled savings are applied. Some insurers apply the discount to only one policy, while others apply the savings to the premiums of all bundled policies.

  9. Compare other discount offerings. Your bundled savings grow even more if you choose an insurance company that has discounts you actually qualify for.

  10. Be sure your new bundled policies go into effect before your existing policies end to avoid a lapse in coverage.

Bottom Line

The purpose of insurance bundles is to save you a bundle. With the right insurer, auto and renters insurance bundles offer savings of up to 30%.

But be sure to look beyond the discount. The right bundle provides comprehensive coverage, budget-friendly deductibles, and few coverage limitations and exclusions.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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