Bundling insurance means buying different types of insurance policies from the same company. This is typically a popular option for those who own both a car and a home since bundling homeowners and auto insurance can result in significant savings.
Still, that doesn’t mean buying a bundle is always the best choice. CNBC Select explains how to decide whether to bundle and choose the right company for your insurance needs.
Insurance companies use bundling discounts as a way to get more of their customers’ business. For example, Nationwide offers a discount of up to 20% for bundling. And with Allstate, you can save an impressive 25% if you bundle home and auto insurance policies online.
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
See our methodology, terms apply.
Beyond the (theoretically) lower price of a bundle, you also will likely enjoy the convenience of keeping your policies in one place. You’ll use one app or website to manage your car and home policies, and they will both live in the same account.
None of these benefits, however, are guaranteed. You might end up dealing with multiple insurers even if you bundle. Some companies serve as affiliates, selling certain policies on behalf of other insurers — and unless you ask, you might not know until after you’ve signed up.
Most importantly, bundling doesn’t automatically save you money. You’ll typically save if your home insurance policy is the more expensive part of the bundle. But if you have high-cost auto insurance, finding the cheapest car insurance from a different provider can lead to more savings than what you’d get from a bundling discount.
For that reason, when you shop around for auto and home insurance, gather quotes for both bundles and separate policies. Do the math and pick the combination that saves you the most money.
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Read our Geico Auto Insurance review.
Geico Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
App available
Policy highlights
Policy covers property damage, personal property, personal liability, medical bills in the event that someone gets hurt on your property and living expenses for loss of use
Does not cover
Additional coverage may need to be purchased for high-value items, like jewelry and fine art; be sure to ask your Geico agent about coverage limits for such items
See our methodology, terms apply.
If you’re on the hunt for discounts, Farmers Auto Insurance offers 22 of them. And if you bundle it with Farmers Homeowners Insurance, you can expect a discount in the neighborhood of 20%. However, note that coverage might not be available in all states.
Farmers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Farmers sells car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 22 discounts.
Farmers Homeowners Insurance
Cost
The best way to estimate your costs is to submit your information for a quote
Maximum coverage
Policy covers your home and property damages, personal liability and loss of use
Does not cover
Damage resulting from earth movement, water, nuclear hazard, failure to make repairs, war and fungi — see here for the complete list; contact a Farmers Insurance agent for a list of any exclusions specific to your state
But ultimately, your individual needs and circumstances will determine what insurance company is best for you. For example, military members and veterans can find great deals with USAA Auto and Homeowners Insurance. Or, if you prioritize convenience and a quick claim process, Lemonade Homeowners Insurance and Auto Insurance could be a good bundle to go with. Make sure to evaluate different options and read reviews before picking an insurance company.
Bundling your insurance policies isn’t complicated, but it’s important to do it right to avoid extra fees or a lapse in coverage. Here are a few steps you can follow:
Research insurance companies. Pick several that look the most promising, and get in touch with them to request quotes.
Review your options. Once you get all the numbers, compare them to determine which company offers the coverage you need at the best price.
Check your existing policies. If you already have a home or auto insurance policy and you need to cancel, you want to consider the timing. Some insurers may require you to give a notice of at least 30 days before dropping the policy. Plus, terminating a policy before the term’s end might trigger early termination fees.
Start your new policies and cancel your existing insurance. Call the insurer you’ve determined is your favorite and purchase the bundle. Note that while some insurers allow staggered start dates within the bundle, others require that all the policies become effective on the same date. This may affect how you handle canceling your existing coverage. Just remember that the end date of your current policy should coincide with the start of the new one to avoid any lapse in coverage.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Bundling your home and auto insurance can save you money — but it’s never a guarantee. When you’re shopping around, get quotes for separate policies, as well as bundles, to find the coverage that makes the most sense in your situation. And once you bundle, you still want to remain an active insurance shopper: it’s generally recommended to request insurance quotes once a year to make sure you’re still getting the best deal.
