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Bundle insurance discount savings are one of the easiest ways to lower your monthly premiums. Combining your home and auto policies under one insurer typically saves 10% to 25% on your total cost. According to Insurance.com, the average American household saves between $466 and $869 per year by bundling. That is real money back in your pocket for doing very little work.
A bundle insurance discount applies automatically when you hold two or more policies with the same carrier. In most cases, you simply request a quote that includes both your home and auto coverage. The insurer then reduces premiums on one or both policies. With average auto insurance costs rising year over year, this multi-policy strategy has become more popular than ever. Roughly 64% of homeowners already bundle their policies, according to an Insure.com survey.
How a Bundle Insurance Discount Actually Works
A bundle insurance discount is applied when one company underwrites multiple policies for the same household. The insurer rewards your loyalty with a percentage reduction. This discount may appear on your auto policy, your home policy, or both. However, the split is not always even. Some carriers discount auto heavily but barely reduce home premiums.
For example, State Farm offers bundled savings of 22% to 25% across policies. Allstate advertises up to 25%, with most customers seeing around 17%. Farmers Insurance averages roughly 19%. Progressive applies a smaller discount of about 7% on the auto portion alone. As a result, your actual savings depend heavily on which insurer you choose. USAA members can save up to 10%, though eligibility is limited to military families.
The bundle insurance discount is not limited to home and auto. Many insurers also include renters insurance, umbrella policies, or life insurance. Amica, for instance, offers discounts up to 30% when you combine three or more policy types. Typically, the more policies you add, the larger the overall reduction becomes.
Comparing Bundle Savings by Insurer
Not every bundle insurance discount is created equal. The table below shows average discounts from major carriers based on publicly available data from NerdWallet and ConsumerAffairs.
| Insurer | Average Bundle Discount | Annual Savings Estimate |
|---|---|---|
| State Farm | 22–25% | $700–$869 |
| Allstate | Up to 25% | $500–$750 |
| Farmers | ~19% | $550–$700 |
| Amica | Up to 30% | $600–$950 |
| Progressive | ~7% (auto only) | $200–$400 |
| USAA | Up to 10% | $300–$500 |
These figures are estimates. Your actual bundle insurance discount depends on your location, driving record, home value, and claims history. In most cases, drivers with clean records and newer homes see the highest percentage reductions. However, even high-risk drivers can benefit from bundling compared to holding separate policies at full price.
It is worth noting that bundling is not always the cheapest path. According to Insurance.com, separate policies from two different companies can sometimes beat a bundled rate. This happens when one insurer is significantly cheaper for auto while another is cheaper for home. Always compare both options before committing.
How to Get the Best Bundle Insurance Discount
Start by requesting bundled quotes from at least three insurers. Ask each company for both the bundled price and the standalone price for each policy. This lets you see exactly how much the bundle insurance discount saves you. Many comparison tools online can pull multiple quotes at once.
Next, review what each bundle includes. Some carriers offer additional perks like a single deductible for covered events that damage both your home and car. Others provide paperless billing discounts or loyalty rewards on top of the bundle insurance discount. For example, Allstate offers a paid-in-full discount that stacks with the multi-policy reduction.
Finally, re-shop your bundle every renewal cycle. Rates change annually based on claims data, market conditions, and your personal risk profile. A bundle insurance discount that was the best deal last year may not be the best deal today. Typically, spending 30 minutes comparing quotes each year can save you hundreds of dollars. Filing a claim on one policy can also raise rates on both bundled policies, so factor that into your decision.
Frequently Asked Questions
How much does bundling home and auto insurance actually save?
Most households save between $466 and $869 per year with a bundle insurance discount. However, savings vary by insurer and your personal risk profile. In most cases, the discount ranges from 10% to 25% off combined premiums.
Can I bundle if I rent instead of own a home?
Yes. Most major insurers offer a bundle insurance discount for combining renters insurance with auto insurance. The savings percentage is typically similar to a home-and-auto bundle. For example, State Farm and Allstate both apply multi-policy discounts to renters policies.
Is bundling always cheaper than buying separate policies?
Not always. Separate policies from two different carriers can sometimes cost less than a bundle. As a result, experts recommend comparing bundled and unbundled quotes side by side. Typically, bundling wins for convenience and cost, but it is worth checking every year at renewal time.
Compare Insurance Rates
Ready to see if you could be paying less? Compare quotes from top insurers in your area. Getting multiple quotes is the most effective way to find a better rate.
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Official Sources & Resources
For verified information on auto insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- Federal Trade Commission — Auto Insurance: consumer.ftc.gov
- USA.gov — Car Insurance: usa.gov/car-insurance
Content last reviewed April 2026. If you notice any outdated information, please contact us.