How Much Can You Save Bundling Your Car Insurance? | Auto Insurance

Insurers tout the money-saving benefits of bundling car insurance in ads and on their websites. But is bundling policies worth it? This guide will walk you through the process of deciding whether or not to bundle your auto insurance.

The biggest advantage of bundling is the potential savings for doing so. Another benefit is the convenience of managing all your insurance policies on the same website or by calling the same customer service number. Even if you don’t bundle your auto insurance with another type of coverage, you may be able to get a discount for listing multiple vehicles on the same auto policy.

The biggest drawback to bundling your car insurance is that you may not save that much. In fact, it’s entirely possible that you will pay less overall if you don’t bundle policies, especially if you own a collectible or hard-to-insure vehicle.

Best Home and Auto Insurance Bundles of 2022

The average car insurance policy costs $ 1,442 annuallyaccording to our research, so it’s easy to see the appeal of (potentially) lowering your premium through bundling.

Insurance companies advertise discounts of 5% to 20% or more for combining car and homeowners policies. But there’s no guarantee that your multiple policy discount will be as significant. In other words, you’ll only know if bundling is right for you by doing your research and getting quotes.

To maximize your savings, the Insurance Information Institute (III) recommends contacting at least three insurance companies. Request rate quotes for auto insurance and another type of policy (such as homeowners insurance) with and without the bundling discount.

Insurers commonly advertise discounts when you bundle your auto and renters or home insurance, but you may be able to unlock additional savings by bundling other policies, including boat, motorcycle, or life insurance. Keep in mind that car insurance policy bundling options vary by company and state, so it’s a good idea to check with an insurer or agent to find out your options. Here’s a breakdown of what types of insurance you can generally bundle with an auto policy. Some companies may offer additional bundling options.

Yes. All of the providers in our best car insurance companies rating offer the option of bundling home or renters coverage with your automotive protection. Advertised savings for combining car and homeowners insurance range from 5% to 25% or more. Discounts for car bundling and renters policies aren’t quite as generous as car/homeowner bundles. Average savings range from 3% to 15%. Bear in mind that your actual savings could be more or less.

Even if you don’t opt ​​for multipolicy discounts, you can still save money by shopping around and consulting our guide to the cheapest car insurance companies. USAA offers the lowest auto premiums in our study. With USAA, a driver with a clean record can expect to pay a premium of about $ 1,000, according to our data. Coverage is only available to USAA members, but if you aren’t eligible, consider Geico, which has the second-cheapest car insurance rates. The average rate for a Geico policyholder with a clean record is $ 1,148. Your actual rate may differ, based on where you live, your driving record, the provider you choose, and your coverage rates, among other factors.

Erie Insurance has the cheapest home insurance rates, based on our research, with monthly premiums averaging $ 98. Erie advertises potential savings of 16% to 25% for bundling home and auto coverage and also offers a multicar discount. The one drawback is that Erie only offers coverage in 14 states. If Erie does not offer coverage where you live, consider Liberty Mutual. It is the second-cheapest company in our rating, with an average premium of $ 113.

If you’re a renter, shopping around for coverage is just as important as it is for a homeowner. Nationwide has the cheapest renters insurance rates, based on our research, with an average premium of about $ 13. In addition, Nationwide’s basic coverage includes alterations you’ve made to your rental as well as protection in the event your credit cards are stolen.

Learn More

For more information about auto insurance, see the following guides:

Other Ratings from 360 Reviews

For more information on other types of insurance, see the following guides:

At US News & World Report, we rank the Best Hospitals, Best Colleges, and Best Cars to guide readers through some of life’s most complicated decisions. Our 360 Reviews team draws on this same unbiased approach to rate insurance companies and agencies. The team doesn’t keep samples, gifts, or loans of products or services we review. In addition, we maintain a separate business team that has no influence over our methodology or recommendations.

US News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.


Leave a Comment