Bundling Home and Auto Insurance: How Multi-Policy Discounts Work and What to Compare
Part of our insurance guides. Bundling means buying your home and car insurance from the same company in exchange for a multi-policy discount. The discount is real and common. Whether the bundle is your cheapest total is a separate question, and the guides below show how to answer it.
Key takeaways
- Triple-I says some companies take 5 to 15 percent off your premium if you buy two or more policies from them.
- The NAIC says insurers offer lower prices for insuring your home and car with the same company.
- Both Triple-I guides add a warning: buying from different companies can still cost less than a multi-policy discount, so compare the combined price.
- The Illinois Department of Insurance describes the auto/home package discount as one "applied if you buy your auto and homeowners policies from the same company." Move one policy and the condition for that discount is gone.
How does a home and auto bundle discount work?
The Illinois Department of Insurance lists "auto/home packages" among standard auto discounts, applied when both policies sit with one company. The NAIC says insurers offer lower prices "for such things as insuring your home and car with the same company," and notes the practice applies "in some states." The Texas Department of Insurance tells shoppers to ask about "discounts for things like having more than one policy with the same company."
How much? Triple-I's homeowners cost guide says: "Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them." Insurers decide which policy or policies the discount applies to, so ask for an itemized quote that shows the home premium, the auto premium and the discount separately.
Is bundling always cheaper?
No. Triple-I's auto guide says it plainly: "You may save money buying from different insurance companies, compared with a multipolicy discount." Its homeowners guide adds: "make certain this combined price is lower than buying the different coverages from different companies."
The reason is arithmetic. A discount is a percentage off one company's price. If that company's starting price for your home or your car is high, a discounted bundle can still cost more than the best separate quotes. Our step-by-step method for pricing both ways on identical coverage is in is bundling insurance always cheaper.
What should you compare before you bundle?
| Compare | Why it matters | Source |
|---|---|---|
| Same coverage on both quotes | "A cheaper policy might provide less coverage." | Texas Department of Insurance |
| Dwelling limit and settlement basis | Replacement cost vs actual cash value changes claim payouts | See our homeowners insurance guide |
| Auto liability limits and deductibles | Higher deductibles lower premiums but raise your out-of-pocket cost | Texas Department of Insurance |
| Itemized discount | Shows what the bundle is worth in dollars | Ask the insurer |
| Total annual cost | Bundle total vs best home quote plus best auto quote | Triple-I |
| Company complaint record and finances | Price is not the only factor | Texas Department of Insurance |
Before you switch both policies: Triple-I notes some insurers reduce premiums by 5 percent after three to five years with them and by 10 percent after six or more. Moving to a new bundle can mean giving up a loyalty discount on the policy you move. Count it in the comparison.
What happens to the discount if you split your policies later?
The multi-policy discount depends on holding the qualifying policies with one company, per the Illinois Department of Insurance's description. If you move your car policy elsewhere, the home policy left behind no longer meets that condition. Ask your insurer two questions before you split: how much the remaining policy will go up, and when.
Other multi-policy situations work the same way. A renter can often get a discount for pairing renters and car insurance; see bundling renters and car insurance. Insuring several cars with one company is a separate discount; see how the multi-car discount works. Triple-I notes you "may also get a reduction if you have more than one vehicle insured with the same company."
Guides in this section
- Is bundling insurance always cheaper? How to check
- Bundling renters and car insurance
- How the multi-car discount works
- Homeowners insurance guide
If you own a home and want car insurance quotes that start from that, you can compare here:
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FAQ
How much can you save by bundling home and auto? It depends on the company and state. Triple-I says some companies take 5 to 15 percent off if you buy two or more policies from them. That is a discount on one price, not a promise of the lowest total.
Can I bundle if my home and car are insured at different times of year? Ask the insurer. Policy start dates and terms are set company by company.
Do I have to bundle with my current insurer? No. You can get bundled and separate quotes from several companies. Triple-I suggests getting at least three quotes.
Does bundling affect claims? Each policy still pays under its own terms and deductibles. A bundle changes price, not what each policy covers.
Where can I compare prices without an agent? The NAIC says your state insurance department, consumer publications and your public library can show what different insurers charge.
Sources
- Insurance Information Institute, "12 Ways to Lower Your Homeowners Insurance Costs," accessed October 1, 2026. https://www.iii.org/article/12-ways-to-lower-your-homeowners-insurance-costs
- Insurance Information Institute, "Nine ways to lower your auto insurance costs," accessed October 1, 2026. https://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs
- National Association of Insurance Commissioners, "Homeowners Insurance," consumer page, accessed October 1, 2026. https://content.naic.org/consumer/homeowners-insurance.htm
- Illinois Department of Insurance, "Auto Insurance Shopping Guide," accessed October 1, 2026. https://idoi.illinois.gov/consumers/consumerinsurance/auto-insurance-shopping-guide.html
- Texas Department of Insurance, "Shopping smart: Tips for buying auto and home insurance," accessed October 1, 2026. https://www.tdi.texas.gov/pubs/consumer/cb035.html
This guide is general information, not insurance advice. Discounts and prices vary by insurer and state.