In a world where inflation is pushing up everyday costs, finding smart ways to save has never been more important. One method gaining serious traction in 2025 is Bundling Car and Home Insurance. If you’re a homeowner and a driver (which, let’s face it, most of us are), this financial strategy can simplify your life and potentially save you hundreds—if not thousands—of dollars a year.
But as tempting as “bundle and save” ads may sound, not all bundles are created equal. This guide will walk you through the ins and outs of Bundling Car and Home Insurance, helping you decide whether it’s the right move for your household.
What Is an Insurance Bundle?
Defining a Multi-Policy Discount
Bundling Car + Home Insurance means purchasing both your car and home insurance from the same provider. This typically unlocks what insurers call a “multi-policy” or “multi-line” discount. These discounts can range from 5% to as much as 25%, depending on the company and your profile as a policyholder.
Beyond the savings, Bundling Car + Home Insurance can also streamline paperwork, billing, and customer service experiences. In 2025, most major insurers have online platforms that allow policyholders to manage both coverages in one place—making it not just a cost-saving decision but a convenience play too.
How Bundling Works in 2025
Insurers like USAA, Allstate, State Farm, and Nationwide are leading the way in multi-policy offerings. The bundling process is often simple: get a quote online, answer a few questions about your home and vehicle, and see your discounts stack up.
Eligibility can vary, though. Some providers—like USAA—only offer services to military families. Others might not operate in all states. It’s crucial to check availability in your area before diving in.
Top Car and Home Insurance Bundle Providers in 2025
USAA
If you’re eligible, USAA is often unbeatable. Known for top-tier customer service, USAA offers up to 10% in bundling savings. However, it’s exclusively available to military personnel and their families. Still, the quality of service and competitive auto insurance rates make it a top choice for those who qualify.
Auto-Owners Insurance
This regional carrier stands out for customer satisfaction. Though it doesn’t advertise a specific discount for bundling, its strong reputation in both auto and home coverage makes it a solid pick. The catch? It’s only available in 26 states.
Nationwide
Nationwide’s bundling discount can reach up to 20%. Its policies include useful perks like identity theft protection and coverage for forged checks—extras that can make the difference if you’re comparing similar quotes.
Allstate
Allstate offers the largest bundling discount on our list—up to 25%. The company has local agents for personalized service and earns high marks for policyholder loyalty. Just be aware that their car insurance rates tend to be higher than average.
State Farm
State Farm estimates annual savings up to $1,073 for bundlers. It also boasts some of the cheapest home insurance premiums in the market. However, its online tools are more limited for homeowners, requiring agent interaction for some services.
Farmers and Progressive
Farmers offers around 20% savings for bundlers and has features like green improvement reimbursements. Progressive claims over 20% in new customer savings, but actual discounts often average just 5%. Still, both are widely available and offer a range of additional discounts.
Pros and Cons of Bundling Insurance
Benefits of Bundling
The most obvious benefit of Bundling Car and Home Insurance is the potential savings. Depending on the provider, you could save a substantial percentage on your premiums. But there’s more:
- Easier account management—one bill, one portal, one contact.
- Stronger customer loyalty perks.
- Simplified claims process in events that impact both car and home (like a natural disaster).
Drawbacks to Consider
That said, bundling isn’t always the cheapest option. Some insurers offer excellent rates on car insurance but less competitive rates on home insurance, or vice versa. It’s also possible that you’ll get fewer customization options for each policy when bundled.
The key is to compare. Don’t assume bundling equals savings—verify it.
How to Find the Right Bundle for You
Compare Quotes from Multiple Providers
Don’t go with the first offer. Spend some time comparing quotes from at least three companies. Use online tools or independent agents to do the legwork. Insurers like Progressive even show competitor rates alongside their own.
Customize Coverage Based on Your Needs
Not every household is the same. A family with teenage drivers and a home in a flood-prone area will have very different needs than a single homeowner in a low-crime neighborhood. Tailor your bundled policy so you’re not paying for extras you don’t need.
Ask the Right Questions
Here’s where the fine print matters:
- What exactly is the bundling discount?
- Are there loyalty perks?
- Can I add other policies like pet, renters, or life insurance into the bundle?
Get answers before you sign. Transparency is essential when committing to a multi-policy deal.
Tips to Maximize Savings When Bundling
There’s more to savings than just signing up for a bundle. Here’s how to squeeze even more value out of your Bundling Car and Home Insurance plan:
- Adjust your deductible: Raising it can lower your premiums—just make sure it’s still affordable.
- Bundle more: Consider adding umbrella, life, or even pet insurance if the provider offers additional multi-policy discounts.
- Avoid small claims: Filing fewer claims can keep your rates from rising.
- Install security systems: Many providers offer discounts for home monitoring, anti-theft devices, or driver safety programs.
- Ask for updated quotes yearly: What was a great deal last year may not be the best deal today.
When Bundling Might Not Be Worth It
Bundling can be smart—but not always. If you find that one company has amazing car insurance rates but expensive home coverage, the savings from bundling might not outweigh the higher premiums. Also, if you need specialized coverage—like for luxury cars or high-risk homes—mixing policies with different insurers could offer more tailored protection.
The bottom line? Crunch the numbers and weigh the benefits of convenience against the potential for greater savings elsewhere.
FAQs About Bundling Car and Home Insurance in 2025
How much can I save by bundling insurance?
Depending on the provider, savings range from 5% to 25%. The national average tends to be around 15%, but some companies like Allstate offer up to 25% off.
Is bundling available in every state?
Not all insurers offer nationwide coverage. For example, Auto-Owners is limited to 26 states. Always confirm state availability before applying.
Does bundling simplify the claims process?
It can. Having both policies under one roof may mean a smoother process if one event affects both your car and home.
Can I bundle more than just car and home insurance?
Yes. Many providers allow you to add renters, life, umbrella, or even pet insurance to your bundle for more savings.
What happens if I cancel one part of the bundle?
You’ll likely lose the bundling discount. Additionally, remaining policy costs may go up due to the removal of the multi-policy perk.
Final Thoughts: Is Bundling Worth It in 2025?
In most cases, Bundling Car and Home Insurance in 2025 is a smart financial move. It can lead to meaningful savings, consolidate your insurance experience, and make claims easier to manage. But it’s not a one-size-fits-all solution.
Make sure to compare rates, understand the terms, and check for other discounts before signing on the dotted line. When done right, bundling could be one of the easiest and most effective ways to simplify your financial life in 2025.
Your home and car are two of your biggest investments. Protect them wisely—and don’t pay more than you have to while doing it.
For more tips and information, check out our latest Insurance articles on our website.
