When you have auto and home insurance with the same carrier, most companies offer a multi-policy discount of 10% to 25%. On average, that saves families $1,200 or more per year compared to having separate policies with different companies.
The discount works because insurance companies want to keep you as a customer across multiple products. A customer with two policies is far less likely to switch carriers than someone with just one. That loyalty is worth a discount to the insurer — and real savings to you.
Having all your insurance with one carrier means one login, one bill, one agent, and one phone number to call. If you have a claim that affects both your auto and home policy (like a tree falling on your car in your driveway), one company handles everything instead of two companies pointing fingers at each other.
Some carriers offer a single deductible for bundled policies when one event causes multiple claims. For example, if a storm damages both your roof and your car, you might only pay one deductible instead of two. This can save you $500 to $1,000 in a single incident.
Bundling isn't always the cheapest option. Sometimes the best auto rate and the best home rate come from different carriers, and the combined total is less than the bundled price from a single carrier. The only way to know is to compare both bundled and separate quotes side by side.
The key is comparing bundle quotes from multiple carriers at the same time. Don't just ask your current auto insurer to add home insurance — their bundle might not be the cheapest. Use a comparison service to see bundled rates from several companies at once.