While the savings are attractive, choosing the right company for your home and auto insurance requires careful consideration of coverage, customer service, and additional perks.
What Is Home and Auto Insurance Bundling?
Bundling refers to purchasing both home and auto insurance from the same provider. Insurers often provide discounts to encourage customers to combine policies. This approach not only saves money but also offers convenience by consolidating policy management, claims processes, and renewals under one account.
Top Home and Auto Insurance Bundles
When it comes to finding the best home and auto insurance bundles, certain insurers stand out for their cost savings, customer service, and policy perks. Here’s a detailed look at the top options:
American Family
American Family is an excellent choice for bundling home and auto insurance, offering savings of up to 23% for policyholders. This insurer is known for its strong customer service and innovative features like diminishing deductibles.
With this benefit, your deductibles decrease by $100 for each claim-free year, adding even more value to your policy. However, American Family isn’t available in every state, which may limit its accessibility.
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Average Costs: Auto insurance: $2,131/year; Home insurance: $2,300/year.
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Why Choose American Family? Fewer consumer complaints and a wide range of coverage and discounts make it an appealing option for those who qualify.
Amica
Amica shines with its focus on customer satisfaction and low complaint rates. The company offers a bundling discount of up to 30%, making it a highly cost-effective option. Amica provides upgraded coverage packages and easy online claims management, ensuring a smooth experience for policyholders.
While its auto insurance isn’t available in Hawaii and home insurance isn’t offered in Alaska or Hawaii, Amica remains a top pick for those within its service areas.
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Average Costs: Auto insurance: $2,982/year; Home insurance: Unavailable.
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Why Choose Amica? Its dividend policies can return up to 20% of your annual premium, offering an extra layer of savings.
Auto-Owners
Auto-Owners is a strong contender for those willing to work with an independent insurance agent. The company offers a variety of coverage options and discounts, along with outstanding customer satisfaction.
A standout feature is its deductible reduction benefit, which applies if a single event (like a storm) damages both your home and car. Auto-Owners reduces your auto deductible by the amount of your homeowners deductible, lowering your out-of-pocket costs.
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Average Costs: Auto insurance: $1,868/year; Home insurance: $1,890/year.
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Why Choose Auto-Owners? Its comprehensive options and exceptional customer service make it a favorite for bundling.
State Farm
State Farm is the largest home and auto insurer in the U.S., known for its robust coverage options and widespread availability. Its bundling options are particularly attractive for safe drivers, who can qualify for discounts of up to 30% through the Drive Safe & Save program.
State Farm also provides additional coverage for boats, RVs, and small businesses, making it a versatile choice for customers with diverse insurance needs.
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Average Costs: Auto insurance: $2,286/year; Home insurance: $1,935/year.
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Why Choose State Farm? It offers generous dwelling coverage and innovative features like free smart-home devices to prevent house fires.
Travelers
Travelers is ideal for eco-conscious homeowners and those seeking flexibility in coverage. The company offers discounts for green homes and accident forgiveness options.
With a solid reputation for customer service and low complaint rates, Travelers makes it easy to bundle policies and save money. However, rideshare coverage is not available in all states, which may limit its appeal to certain drivers.
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Average Costs: Auto insurance: $1,722/year; Home insurance: $2,010/year.
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Why Choose Travelers? Its Responsible Driver Plan forgives one accident or violation over a set period, adding value to its policies.
USAA
USAA stands out as a top choice for military members, veterans, and their families. While its services are exclusive to this group, USAA offers impressive savings of up to 10% for bundling.
The company is known for its exceptional customer service, fewer complaints than expected, and added benefits like replacement cost coverage for belongings. Military uniforms are also covered with no deductible, highlighting USAA’s focus on its members’ unique needs.
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Average Costs: Auto insurance: $1,452/year; Home insurance: $1,875/year.
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Why Choose USAA? It combines affordable rates with specialized benefits tailored to military families.
Benefits of Bundling Home and Auto Insurance
Bundling provides several key advantages:
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Cost Savings: Many insurance companies advertise discounts of up to 30% for bundling policies. These savings can significantly reduce your overall insurance costs.
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Simplified Management: Handling multiple policies through a single insurer streamlines billing, renewals, and claims.
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Customized Coverage: Bundled policies are often designed to align coverage limits and terms, offering a comprehensive solution for your needs.
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Stronger Relationship with Your Insurer: Staying loyal to one company by bundling policies may lead to additional perks, such as accident forgiveness or rate stability.
Drawbacks of Bundling Home and Auto Insurance
While bundling offers benefits, there are some potential downsides to consider:
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Less Motivation to Shop Around: Bundling may discourage you from regularly comparing rates, which could result in missed savings opportunities.
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Not Always the Cheapest Option: In some cases, purchasing separate policies from different insurers may be more cost-effective.
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Limited Availability: Some insurers don’t offer home and auto policies in every state, which can limit your options.
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Third-Party Management: Occasionally, bundled policies may involve a partner company, meaning you won’t get the convenience of managing both policies through one provider.
Conclusion
Bundling your home and auto insurance can be a win-win solution, combining convenience with cost savings. However, it’s essential to shop around, compare quotes, and evaluate your specific needs. By doing so, you can enjoy comprehensive coverage at the best possible price.