If you own a home and a car, you’ve probably heard the term “bundle your insurance.” But what does that really mean—and how much can you actually save? At Tom Needham Insurance, we believe in clear, practical advice that ensures you’re not sacrificing coverage for convenience. Let’s explore the benefits, the numbers, the trade-offs, and how to decide if bundling makes sense for you.
What is bundling—and why do insurers offer it?
“Bundling” refers to buying more than one policy (commonly home and auto) from the same insurance company. When you do this, many insurers offer a multi-policy discount, because you’re consolidating risk and committing your business. For example:
- According to Experian, bundling can yield average premium reductions of 10% to 20%, though results vary by state and company.
- One larger insurer, State Farm, suggests you could save up to $1,356 per year by combining auto and home policies.
- Another carrier, Liberty Mutual, advertises savings “up to $950” when you bundle home and auto.
So yes—bundling can save you money. But it’s not a guarantee. As a trusted independent agency, Tom Needham Insurance encourages you to evaluate the numbers—not just the promise.
Real-world savings: what the data show
Here are some recent findings:
- A 2024 article from NerdWallet noted that while discounts are common, they vary widely; a bundle might not always be cheaper than purchasing separate policies.
- One review noted the “average savings for bundling home and auto insurance is 14%”.
- Another estimate: bundling often delivers discounts in the range of 10% to 25%.
- Further, convenience adds value. Bundled policyholders deal with one bill, one agent, and might simplify claim-handling if a single event affects both their car and home.
Imagine this scenario: You currently pay $1,200 for auto insurance and $1,800 for homeowners insurance annually (total $3,000). A 15% multi-policy discount could reduce your combined premium to $2,550, saving $450 per year. But suppose your home policy is already very cheap and your auto policy is expensive (or vice-versa). In that case, the savings may be smaller—or a different insurer for the expensive policy may yield better savings.
The benefits of bundling—you may not have thought of
- Simplified management. One agent, one renewal date, one payment platform. Bundling reduces administrative complexity.
- Potential for other perks. Some insurers extend additional discounts—like accident-forgiveness, safe-driving credits, or better risk class treatment—when you bundle.
- Single point of contact in a claim. If a storm damages both your car and your house, having the same insurer for both can streamline your claim process. Some companies highlight this as a benefit of bundling.
But bundling isn’t always the best choice—consider these trade-offs
- Not all bundling deals are equal. If the insurer’s auto policy is expensive compared to local competitors, the bundle discount might not offset the disadvantage. NerdWallet warns: “Your rate will depend on where you live, your credit history… and the value of what you’re insuring.”
- Potential lock-in effect. Once you bundle, you may feel less motivated to shop around for better rates on either policy. Experian warns that not reviewing your coverage can cost you money in the long run.
- Specialized coverage may be better separate. If your home is high-risk (e.g., wildfire zone) or your car is high-risk (sports car, multiple accidents), separate niche insurers may yield better coverage or pricing.
How Tom Needham Insurance helps you decide
At Tom Needham Insurance, we help you look at more than just the discount number. Our approach:
- Coverage review and comparison. We run quotes for bundled and un-bundled scenarios, comparing both cost and coverage.
- Focus on your total portfolio. Your home and car don’t exist in a vacuum. We review your property value, vehicle usage, driving record, credit profile (where allowed), and regional risk factors (weather, crime, flood).
- Transparency on savings and coverage. We’ll show you: “Here’s your current combined spend. Here’s how it changes with bundling. Here’s the difference in coverage, deductibles, and service.”
- Annual check-ups. Your life changes—and so do rates. We recommend revisiting your bundle or policy mix at each renewal.
Explore our Bundling service here: Home & Auto Insurance Bundling – Tom Needham Insurance (navigate to “Services → Homeowners & Auto”).
Quick checklist: Should you bundle?
- Do you currently have both a home and at least one auto policy?
- Is your current combined spend moderately high (so that a percentage discount equals hundreds of dollars)?
- Are your risk-profiles (home and auto) fairly standard (good driving record, home not ultra-high-risk)?
- Are you with a quality insurer with strong claims handling and service?
- Did you compare the bundled rate and separate quotes before decision?
If you answered “yes” to most, bundling may well make sense. If you answered “no” (for example, your home is in a high-risk zone or your car is specialty), you might benefit from separate policies. Several of our carriers offer “agency” discounts for having the other policy with the same agency even if with a different carrier.
Final word
Bundling your home and auto insurance can offer meaningful savings—commonly 10% to 25%, and sometimes as much as several hundred dollars annually. But the key is: it depends on the company, state, your risk profile, and existing rates. Discounts are helpful—but they don’t guarantee the best deal.
At Tom Needham Insurance, our goal is to ensure you’re making an educated decision—one that mixes savings and proper coverage. If you’d like a transparent, no-pressure review of your home and auto policies (separate and bundled), contact us today. We’ll run the numbers, review your coverage, and help you choose wisely. Visit Homeowners Insurance and Auto Insurance to learn more.
By being informed, proactive, and working with a trusted advisor, you’ll make your insurance work for you—rather than the other way around.