What savings can I expect from bundling?

Typical savings range from 5-25% off individual policy premiums, varying by insurer and coverage combinations.

Bundling home and auto insurance is a popular strategy for saving money on your insurance premiums. When you bundle, you purchase both your home and auto insurance policies from the same insurance provider. This approach often leads to discounts ranging from 5% to 25% on your overall premium costs, but the exact percentage can vary based on the insurer you choose and the specific features of your policies. Insurance companies offer these discounts because it is administratively simpler for them, and they gain more of your business by providing multiple forms of coverage. Conditions for discounts may vary, and sometimes additional perks or features are included as part of a bundled package, such as lower deductibles or added coverage options.

Imagine you're a homeowner and own a car. You have separate insurance providers for your home and your car, and you pay $1,000 per year for home insurance and $800 per year for auto insurance. If you bundle these policies with one insurer offering a 15% discount, you could save $270 annually. Instead of paying $1,800 in separate premiums, bundling could bring your cost down to $1,530 a year. This real-world effect of bundling can free up money for other expenses or savings.

If you're considering bundling your home and auto insurance, start by comparing offers from multiple insurers. Look beyond just the discounts—examine the coverage details and any additional benefits that come with a bundled policy. Make sure the coverage meets your needs and that you are not sacrificing important features for the sake of a lower price. It's also wise to periodically review your bundled policies to ensure they still provide the best value as your circumstances or market offerings change.