Quick Answer: Bundling Usually Saves Money — But Only If You Compare First
Bundling your auto and home insurance with the same carrier can save you an average of $542 to $869 per year, according to 2026 data from MoneyGeek and Insurance.com. Most major carriers offer multi-policy discounts ranging from 10% to 25% — with State Farm averaging 22% off and American Family offering up to 40%. However, bundling is not always the right move. If your carrier is overpriced on one line, a bundle discount won’t save you money compared to finding the best rate for each policy separately. The wise approach: always compare bundled and unbundled quotes before you decide.
Key Takeaways
- Average bundle savings: $542–$869 per year depending on carrier and location.
- Typical discount range: 10% to 25% off one or both policies — sometimes up to 40%.
- State Farm leads major carriers with an average 22% bundle discount.
- Bundling isn’t always cheaper: If one policy is overpriced, the discount won’t beat shopping separately.
- One claims process: Bundling simplifies your insurance life — one insurer, one renewal, one call.
- Always compare both ways: Get quotes for bundled and separate policies before making a decision.
What This Guide Covers
- How much can you save by bundling in 2026?
- Best companies for home and auto bundles
- How bundling discounts actually work
- When bundling saves you money — and when it doesn’t
- Other benefits of bundling beyond savings
- What to watch out for
- How to get the best bundled rate
- Frequently asked questions
- Methodology
How Much Can You Save by Bundling Home and Auto Insurance in 2026?
The savings from bundling vary significantly depending on which carrier you choose and where you live. Here is a clear breakdown of average bundle discounts from major carriers in 2026, based on data from Insurance.com and InsureMojo:
| Insurance Company | Average Bundle Discount | Est. Annual Savings |
|---|---|---|
| American Family | Up to 40% | Highest available |
| State Farm | 22% average | ~$847/year |
| Farmers | 19% average | Varies by state |
| Allstate | 17% average | Varies by state |
| Nationwide | 17% average | Varies by state |
| Amica | Up to 30% | Varies by state |
| Progressive | ~6% average | ~$223/year |
Savings estimates based on national averages. Actual savings vary by state, coverage amounts, home value, and driving history.
The takeaway: the carrier you choose matters enormously. State Farm’s 22% average bundle discount delivers nearly four times the savings of Progressive’s 6%. The only way to know your actual savings is to compare quotes — bundled and separate — before you commit.
How Bundling Discounts Actually Work
When you bundle home and auto insurance, your carrier applies a multi-policy discount to reward you for keeping both policies under one roof. But the math isn’t always what it seems, according to Policy Ridge.
Where the Discount Actually Goes
Most insurers don’t apply the discount equally to both policies. In many cases, the majority of the savings go to your auto policy, with a smaller amount applied to home — or sometimes only one policy gets discounted at all. A carrier advertising “20% off when you bundle” may mean 20% off auto and nothing off home, or 15% off auto and 5% off home.
The Catch Nobody Mentions
Bundling only saves money when your carrier is competitively priced on both policies. As InsureMojo’s 2026 analysis points out, pairing a cheap auto insurer with an expensive home insurer and accepting the bundle discount can actually cost you more than shopping each policy separately. The bundle discount sounds attractive — but it’s a percentage off a price that might already be too high.
The Simple Rule
Always get quotes three ways: (1) bundled with Carrier A, (2) auto-only with the cheapest auto insurer, and (3) home-only with the cheapest home insurer. Compare the total cost of all three before deciding. The bundle wins more often than not — but not always.
When Bundling Saves You Money — and When It Doesn’t
Bundling Typically Makes Sense When:
- Your carrier is competitively priced on both your auto and home policies
- You have a clean driving record and a standard home — making you a low-risk customer carriers want to keep
- You value the simplicity of one insurer, one renewal date, and one claims process
- Your carrier offers a substantial multi-policy discount of 15% or more
- You’re insuring multiple vehicles — adding a multi-car discount on top of the bundle can amplify savings significantly
Bundling May NOT Save You Money When:
- Your carrier charges above-market rates on one or both policies — a 20% discount off an overpriced policy may still cost more than a competitor’s standard rate
- You drive a high-risk vehicle or have a spotty driving record — your auto premium may be much cheaper with a specialty carrier
- You own a high-value or unusual home — some specialty home insurers beat standard carriers by a wide margin, regardless of bundling
- Your insurer only applies the discount to one policy, not both
Other Benefits of Bundling Beyond the Savings
The financial discount gets most of the attention, but bundling comes with real practical advantages that are worth considering:
1. One Insurer, One Call
When something goes wrong — a car accident that also damages your garage, or a storm that damages both your car and your roof — having one insurer handling both claims simplifies the process significantly. You’re not caught between two companies pointing fingers at each other.
2. One Renewal Date
Managing two separate policy renewal dates with two different insurers means two sets of paperwork, two billing cycles, and two opportunities to miss a renewal. Bundling consolidates everything.
3. Loyalty Perks Over Time
Many carriers reward long-term bundled customers with additional perks — diminishing deductibles, accident forgiveness, and rate-lock programs. American Family’s Diminishing Deductible program, for example, reduces your deductible by $100 per year for each claim-free year on both policies.
4. Easier to Add Coverage
Once you’re bundled with a carrier you trust, adding life insurance, umbrella coverage, or motorcycle insurance becomes much simpler — and often comes with additional multi-policy discounts.
What to Watch Out For When Bundling
Rate Creep Over Time
Bundled customers sometimes become complacent — and insurers know it. Re-shopping your bundled rates every one to two years is important to make sure you’re not paying a loyalty premium. Rates that were competitive when you first bundled may not be competitive three years later.
The “Bundled Price” Isn’t Always Transparent
Some carriers show you a bundled total price without breaking out what each policy costs individually. Ask for the itemized breakdown so you know exactly how much each policy costs and where the discount is being applied.
Switching Is Harder When You’re Bundled
If your carrier raises rates on one policy, you face a more complicated decision — do you move both policies to stay bundled elsewhere, or accept a worse rate on one to keep the bundle? This stickiness is partly why carriers offer bundle discounts in the first place.
How to Get the Best Bundled Rate in 2026
Step 1: Get Your Current Totals
Write down exactly what you’re paying now for auto and home insurance separately. This is your baseline for comparison.
Step 2: Compare Bundled Quotes
Get bundled quotes from at least three major carriers — including State Farm, Farmers, and Allstate — and compare the total bundled cost against your current separate premiums.
Step 3: Compare Separately Too
Get standalone quotes for auto from the top auto carriers and standalone home quotes from the top home carriers. Calculate the combined cost of the best auto + best home vs. the best bundle. This is the only way to know whether bundling truly saves you money.
Step 4: Check What’s Actually Discounted
Ask the carrier to specify how the multi-policy discount is applied — to auto only, home only, or both. This affects your actual savings significantly.
Step 5: Re-Shop Every Year or Two
Don’t let loyalty creep cost you. Set a reminder to compare rates every one to two years. A few minutes of shopping can save hundreds of dollars annually.
How OwlQuotes.com Helps You Find the Best Bundle
At OwlQuotes.com, comparing auto and home insurance quotes is fast, free, and completely pressure-free. Enter your ZIP code, answer a few quick questions, and compare real quotes from top carriers side by side — so you can see exactly what bundling saves you before you commit.
No spam. No obligation. No sales pressure. Just clear, side-by-side comparisons so you can make the wise choice for your household — exactly what Ollie would want.
We also help with life insurance, health insurance, motorcycle insurance, and business insurance — all in one place, across all 50 states.
Ready to See How Much Bundling Could Save You?
It takes about 60 seconds to compare auto and home insurance quotes side by side. Find out if bundling is the wise choice for your household — or if shopping separately gets you a better deal.
Frequently Asked Questions: Bundling Home and Auto Insurance
How much does bundling home and auto insurance save on average?
Bundling saves an average of $542 to $869 per year, according to 2026 data from MoneyGeek and Insurance.com. The actual savings depend heavily on which carrier you choose — State Farm averages $847 in annual bundle savings, while Progressive averages closer to $223.
Is bundling home and auto insurance always worth it?
Not always. Bundling only saves money when your carrier is competitively priced on both policies. If one policy is overpriced, the bundle discount may not beat the savings from shopping each policy separately with the best available carrier for each. Always compare bundled and unbundled quotes.
Which insurance company has the best bundle discount in 2026?
American Family offers the highest documented bundle discount at up to 40%, but it is not available in all states. Among nationally available carriers, State Farm leads with an average 22% bundle discount, followed by Farmers at 19% and Allstate and Nationwide at 17%.
Can I bundle renters insurance with auto insurance?
Yes. Most major carriers offer multi-policy discounts for renters and auto insurance bundled together, just like home and auto. Renters insurance is typically inexpensive — often $15–$30 per month — making the bundle discount even more valuable relative to the cost.
Does bundling affect my claims experience?
It can actually simplify it. When a single event damages both your car and your home — a hailstorm, for example — having one insurer handle both claims eliminates the back-and-forth between two companies. However, filing multiple claims with the same insurer can affect both your auto and home rates simultaneously.
How do I know if my bundle discount is being applied correctly?
Ask your insurer to itemize the discount — specifically, how much is being applied to your auto policy and how much to your home policy. Some carriers apply the full discount to only one policy. Understanding where the savings actually land helps you make a fair comparison.
Should I re-shop my bundle every year?
Yes. Bundled customers sometimes face rate creep as carriers gradually increase premiums, knowing bundled policyholders are less likely to switch. Re-shopping your bundled rates every one to two years — and comparing against the best available separate rates — ensures you stay on the wise side of the savings equation.
Methodology
Bundle savings data in this guide is sourced from 2026 rate analyses by Insurance.com, InsureMojo, Policy Ridge, and InsuranceCostGuide. Carrier discount percentages reflect national averages and advertised maximums as reported by each source. Actual savings vary by state, ZIP code, home value, coverage amounts, driving history, and individual underwriting factors. This guide is for informational purposes only and does not constitute insurance advice.
About OwlQuotes.com
OwlQuotes.com is a free online insurance comparison marketplace helping consumers compare quotes from top-rated carriers across all 50 states. Our content uses data from the Insurance Information Institute (III), the National Association of Insurance Commissioners (NAIC), and other trusted industry sources to keep our guides accurate and up to date.
Want to find the best rate on auto and home insurance — bundled or separate? Visit our Auto Insurance and Home Insurance pages to compare quotes from top carriers and find the coverage that fits your household and your budget.
