Bundling insurance means buying different types of insurance policies from the same company. This is typically a popular option for those who own both a car and a home since bundling homeowners and auto insurance can result in significant savings.
Still, that doesn't mean buying a bundle is always the best choice. CNBC Select explains how to decide whether to bundle and choose the right company for your insurance needs.
Bundling home and auto insurance
Is it better to bundle home and auto insurance?
Insurance companies use bundling discounts as a way to get more of their customers' business. For example, Nationwide offers a discount of up to 20% for bundling. And with Allstate, you can save an impressive 25% if you bundle home and auto insurance policies online.
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
Beyond the (theoretically) lower price of a bundle, you will also likely enjoy the convenience of keeping your policies in one place. You'll use one app or website to manage your car and home policies, and they will both live in the same account.
None of these benefits, however, are guaranteed. You might end up dealing with multiple insurers even if you bundle. Some companies serve as affiliates, selling certain policies on behalf of other insurers — and unless you ask, you might not know until after you've signed up.
Most importantly, bundling doesn't automatically save you money. You'll typically save if your home insurance policy is the more expensive part of the bundle. But if you have high-cost auto insurance, finding the cheapest car insurance from a different provider can lead to more savings than what you'd get from a bundling discount.
For that reason, when you shop around for auto and home insurance, gather quotes for both bundles and separate policies. Do the math and pick the combination that saves you the most money.
What is the best insurance company to bundle with?
CNBC Select rated Geico as the best insurance company for bundling, with some of the lowest average premiums for auto insurance. Additionally, the company offers a diverse range of insurance products, including policies for , for renters and for condo owners.
Geico Auto Insurance
Policy highlights
Geico offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Availability
Geico auto insurance is available in all 50 U.S. states and Washington, D.C.
Accident forgiveness
Accident forgiveness is automatic if you remain accident-free for five years. It can also be bought as an upgrade when you buy or renew your policy.
Terms apply.
Read our Geico auto insurance review.
Geico Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers property damage, personal property, personal liability, medical bills in the event that someone gets hurt on your property and living expenses for loss of use
Does not cover
Additional coverage may need to be purchased for high-value items, like jewelry and fine art; be sure to ask your Geico agent about coverage limits for such items
Terms apply.
If you're on the hunt for discounts, Farmers Auto Insurance offers 22 of them. And if you bundle it with , you can expect a discount of around 20%. However, coverage might not be available in all states.
Farmers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Farmers Insurance offers 23 discounts for auto insurance and issues policies in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and Washington, D.C.
Terms apply.
Read our review of Farmers car insurance
Farmers Homeowners Insurance
Cost
The best way to estimate your costs is to submit your information for a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers your home and property damages, personal liability and loss of use
Does not cover
Damage resulting from earth movement, water, nuclear hazard, failure to make repairs, war and fungi — see here for the complete list; contact a Farmers Insurance agent for a list of any exclusions specific to your state
Terms apply.
Read our Farmers homeowners insurance review
Ultimately, your individual needs and circumstances will determine what insurance company is best for you. For example, military members and veterans can find great deals with USAA auto and homeowners insurance. Or, if you prioritize convenience and a quick claim process, Lemonade homeowners insurance and auto insurance could be a good bundle to go with.
Make sure to evaluate different options and read reviews before picking an insurance company.
How to bundle home and auto insurance
Bundling your insurance policies isn't complicated, but it's important to do it right to avoid extra fees or a lapse in coverage. Here are a few steps you can follow:
- Research insurance companies. Pick several that look promising and contact them to request quotes.
- Review your options. Once you get all the numbers, compare them to determine which company offers the coverage you need at the best price.
- Check your existing policies. If you already have a home or auto insurance policy and need to cancel, consider the timing. Some insurers may require you to give a notice of at least 30 days before dropping the policy. Additionally, terminating a policy before the term ends may trigger early termination fees.
- Start your new policies and cancel your existing insurance. Call the insurer you've determined is your favorite and purchase the bundle. Note that while some insurers allow staggered start dates within the bundle, others require all policies to become effective on the same date. This may affect how you handle canceling your existing coverage. Just remember that the end date of your current policy should coincide with the start date of the new one to prevent any lapse in coverage.
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At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every insurance guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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