Should You Bundle Home and Auto Insurance? A Former Claims Adjuster’s Take

My insurance agent calls me every single renewal period. Every. Single. One. And the pitch is always the same—”Sarah, you could save SO much if you just bundled your home and auto with us.”

Last time I actually did the math. Spoiler: the bundle wasn’t cheaper. But sometimes it is. That’s the annoying thing about insurance—the answer is almost always “it depends.”

So let me walk you through when bundling actually makes sense and when you’re better off keeping your policies separate. Because after six years of processing claims, I’ve seen people save hundreds by bundling AND I’ve seen people overpay by hundreds because they assumed bundling was automatically the better deal.

What bundling actually means

Bundling is just buying multiple insurance policies from the same company. Usually it’s home and auto together, but you can bundle renters insurance, umbrella policies, life insurance, motorcycle coverage—basically anything the company sells.

Insurance companies LOVE bundles because once you’ve got multiple policies with them, you’re way less likely to leave. Switching one policy is annoying enough. Switching three? Most people won’t bother. So they offer discounts to get you locked in.

The typical multi-policy discount runs somewhere between 5% and 25% according to Bankrate’s research. Some companies advertise higher—I’ve seen claims of up to 30%—but read the fine print. That’s usually the maximum possible discount if you qualify for every single criteria they have.

When bundling makes sense

Okay so here’s when I’d actually recommend bundling:

When the same company has competitive rates for BOTH policies. This sounds obvious but people miss it constantly. If Company A has great auto rates but terrible home rates, that 15% bundle discount might not make up the difference. You have to compare the bundled total against buying separately from different companies.

When you value simplicity. One login. One bill. One phone number to call. If something happens to both your house and your car—like a tree falls on your garage with your car inside—you’re dealing with one company instead of two. I had a claim like this once where the homeowner had separate policies and spent weeks going back and forth between adjusters arguing about whose coverage applied to what. Nightmare.

When you want that single-deductible benefit. Some bundled policies offer this and it’s actually huge. If a covered event damages both your home and car simultaneously, you only pay one deductible instead of two. Hailstorm that dents your car and destroys your roof? One deductible. That alone could save you $500-1000.

When bundling doesn’t make sense

Here’s where I disagree with basically every insurance company’s marketing department:

When the math doesn’t work. I cannot stress this enough. Run the actual numbers. Get quotes for bundled coverage AND separate quotes from different companies. I’ve seen cases where buying auto from one company and home from another saved $400+ per year compared to the best bundle offer. The discount doesn’t matter if the base rates are higher.

When one company is clearly better for your specific situation. Maybe you have a teenage driver and Company A has way better rates for young drivers. Or you live in a flood zone and Company B has better flood coverage options. Don’t force a bundle just for the discount.

When you’re locked into a good rate somewhere. If you’ve got a loyalty discount or claims-free discount building up with one company, switching to bundle might reset all that. Calculate what you’re giving up.

The math nobody shows you

Let me give you a real example. These aren’t my actual numbers but they’re representative of what I’ve seen:

Separate policies: Auto with Company A is $1,200/year. Home with Company B is $1,400/year. Total: $2,600.

Bundled with Company C: Auto is $1,350. Home is $1,500. But you get a 20% bundle discount. So that’s $2,850 minus 20% equals $2,280.

Bundle wins by $320, right?

But wait. What if Company A offers a loyalty discount because you’ve been with them for years? Now your auto is $1,080. Your actual comparison is $2,480 separate versus $2,280 bundled. Bundle still wins but only by $200.

Now what if Company B has claims-free discount building? Home drops to $1,260. Now you’re at $2,340 separate versus $2,280 bundled. The difference is forty bucks a year—less than four dollars a month.

Is four dollars a month worth losing your tenure with two companies you like? Maybe. Maybe not. The point is you can’t just look at the discount percentage and assume bundling wins.

How to actually compare

Here’s my process and honestly it takes like an hour but can save you hundreds:

First, get your current declarations pages for both policies. These show exactly what coverage you have and what you’re paying.

Second, get bundle quotes from at least three companies. Make sure you’re matching your current coverage levels—same liability limits, same deductibles, same optional coverages.

Third, get standalone quotes for each policy type. Auto quote from three companies, home quote from three companies. Mix and match to find the cheapest combination.

Fourth, compare totals. Not discounts. Not percentages. Actual dollars out of your pocket per year.

Fifth—and people forget this—check the coverage details. Cheaper isn’t better if you’re getting less coverage. Read what’s actually included.

Other things to consider

Claims handling matters. A lot. I’ve worked with some companies that have amazing claims departments and some that are absolute nightmares. If you have a great experience with your current insurer, that’s worth something. Check J.D. Power ratings and customer reviews before switching just to save fifty bucks.

Your situation changes. That bundle that made sense when you were a new homeowner might not make sense now. Or vice versa. Check every couple of years even if you’re not actively shopping.

Watch for rate increases. Some companies offer great introductory bundle rates and then jack them up at renewal. Always compare at renewal time, not just when you first sign up.

Comprehensive just knocked my coffee over again—she has zero respect for beverages—but the point is bundling can be great OR it can cost you money. The insurance industry spends millions convincing you that bundling automatically saves money because they know most people won’t actually do the comparison.

Don’t be most people. Run the numbers. Your wallet will thank you.

And if the bundle does win? Great. Take the savings and maybe stack some other discounts on top. Every dollar counts.