Last Updated on October 28, 2026 by Syed Sarim Naqvi
Bundling means buying home and auto insurance from one insurer for a multi-policy discount, which sources put at 5% to 25% and as high as 40% at some carriers, but a bundle is not always cheapest overall. The catch is that the insurer with the cheapest home policy is rarely the cheapest for auto, so a 25% discount on an expensive policy can lose to separate policies from two companies.
Key Takeaways
- Gerald, Kin and NerdWallet put typical bundle savings at 5% to 25%, Insurify says 10% to 25% with most insurers, and NerdWallet’s 2026 picks list discounts up to 30% or 40% at some carriers
- Bankrate lists Allstate at up to 25%, Farmers at an average of 20% and Nationwide at up to 20%
- NerdWallet’s example: a home and auto bundle might give 10% off auto and 15% off home, while auto with renters can give up to 5% in one example
- Gerald puts renters plus auto bundles at 5% to 15%, and United Policyholders says Farm Bureau customers can get up to 22% off auto premiums
- Kin and NerdWallet warn that bundling may not be cheapest: always compare separate quotes
What Is a Multi-Policy Discount?
Bankrate says if you insure both your vehicle and your property, whether home, condo or renters coverage, with the same carrier, you may qualify for a multi-policy, multi-line or bundling discount, and that most insurers selling both offer one but savings and eligible policy types vary. Insurify says a bundle of two policies from one company can save up to 25% depending on the insurer. Kin adds that bundling also combines billing and policy documents in one account.
Which Policy Gets the Bigger Discount?
NerdWallet, quoted on Nasdaq, says companies that bundle tend to give 5% to 25% on each policy and that homeowners insurance typically gets the biggest discount because the home is worth more than the car. Its example: 10% on auto and 15% on home when bundled, or up to 5% when auto is bundled with renters. United Policyholders notes discounts are generally bigger when combining auto with home than with renters or condo.
| Bundle | Reported Discount | Source |
|---|---|---|
| Home and auto | 10% to 25% | Insurify, Gerald |
| Renters and auto | 5% to 15% | Gerald |
| Allstate home and auto | Up to 25% | Bankrate |
| Farmers home and auto | 20% average | Bankrate |
| Top NerdWallet picks | Up to 30% or 40% | NerdWallet, March 2026 |
When Does Bundling Cost More?
NerdWallet quotes the CEO of an auto insurer saying the company that gives the lowest-cost home insurance is most likely not the one offering the lowest-cost auto insurance, and that a discount on an inexpensive homeowners policy, even 25%, could pale beside the savings from breaking the bundle and choosing the cheapest auto insurer. Kin says even with a bundling discount, the savings may not outweigh the higher rate of one policy. Insurify advises comparing separate home and auto quotes before buying a bundle.
What Does a Renters Bundle Save?
NerdWallet gives a worked example: if car insurance costs $2,000 a year and adding renters insurance earns a 10% bundling discount, you save $200, and since average renters insurance costs $151 a year in its analysis, the auto savings more than cover the renters premium. It also says the cheapest auto and renters rates may come from two separate companies even without a bundling discount.
How Do You Decide?
- Get separate quotes: price home and auto separately, then bundled
- Compare totals: add both policies, not just the discount percentage
- Check claims service: Bankrate and United Policyholders note a bundler’s home claims record can differ from its auto record
- Add policies: adding auto to an existing home insurer usually triggers a discount
- Re-shop at renewal: discounts can be offset by rate changes
How Does This Connect to Other Cover?
Home pricing is in Credit-Based Insurance Scores Explained and CLUE Reports Explained, and auto pricing in Telematics Car Insurance Explained. Liability is in Auto Liability Limits Explained and Homeowners Liability and Medical Payments Explained. Renters are in Renters Insurance Explained, and extra limits in Umbrella Insurance Explained.
FAQ
How much can I save by bundling?
Typically 5% to 25%, with some carriers advertising up to 30% or 40%.
Which policy gets the bigger discount?
Home insurance usually, since the home is worth more than the car.
Is bundling always cheaper?
No. Separate policies from two insurers can cost less.
Can renters bundle?
Yes, with discounts of 5% to 15% in one guide.
Can I add a policy later?
Yes. The discount usually applies when the new policy starts.
Should I compare quotes?
Yes. Compare separate and bundled totals.
Do bundles simplify billing?
Yes, per Kin, with one account for policies and billing.
Glossary
- Bundling: buying multiple policies from one insurer.
- Multi-policy discount: a price reduction for holding several policies.
- Multi-line: another name for a bundling discount.
- Breaking the bundle: moving one policy to a different insurer.
- Renewal: the point when a policy is repriced.
Sources
- Bankrate: How to Bundle Home and Auto Insurance (Allstate, Farmers, Nationwide discounts)
- NerdWallet via Nasdaq: Does Bundling Insurance Mean You’ll Save a Bundle? Not Always (5% to 25%, 10% and 15% example)
- Insurify: Best Companies for a Home and Auto Insurance Bundle in 2026 (10% to 25%, compare separate quotes)
- United Policyholders: How to Save by Bundling Auto and Home (Farm Bureau 22%, larger home discounts)
- Gerald: Insurance Bundle Guide 2026 (5% to 25%, renters bundle range)
- Kin: How to Bundle Home and Auto Insurance (drawbacks, adding a policy)
- NerdWallet: Best Auto and Renters Insurance Bundles ($2,000 example, $151 renters average)
- NerdWallet: Best Home and Auto Insurance Bundles for 2026 (up to 30% and 40% discounts)
Related reading: High-Value Home Insurance Explained · Collision vs Comprehensive Insurance Explained · Motorcycle Insurance Explained
Published October 2026. Discounts, rates and eligibility vary by insurer and state and change often; always compare separate and bundled quotes and read the terms, and refresh this article periodically.
Leave a Reply