Save big when you combine your homeowners and auto insurance with our three favorite providers.
So you’re doing pretty well for yourself. You own a home and you have a nice car or two. Maybe you have the white picket fence and two-and-a-half kids as well. Not too shabby.
If you’ve gotten this far, you realize that all of these things need protection — particularly your home and your automobile. Now you could piecemeal it, or you can bundle your insurance policies together to save some time, some money, and some frustration should disaster strike.
Is it a good idea to bundle auto and homeowners insurance? And which providers offer the best bundles? Let’s take a look at our three favorites.
We’ve put a ton of insurance providers to the test, and no matter how you slice it, Lemonade is usually at or near the top of the heap. Their exceptional user experience, affordable rates, and great bundling opportunities make them one of the best providers of insurance in the country right now when it comes to home and auto.
When you first log on to Lemonade’s site, you’re immediately going to notice they do things a little differently. Their site is sleek, their language is straightforward, and their quote process is the closest thing to fun we’ve encountered so far.
Ultimately, Lemonade is looking to take the confusion out of purchasing an insurance policy. For the most part, they use layman’s terms for everything — the site is virtually jargon-free — and their AI-based assistant will help you every step of the way in securing and bundling your policies.
But all these modern trappings mean nothing if the coverages aren’t complete and the premiums aren’t reasonable. The good news is, when we reviewed Lemonade, we found they offer a great balance of protection and affordability. You can read more on this in our guide to Lemonade’s costs and policies, but you’re going to save significantly when you bundle your homeowners and auto insurance.
There is one big caveat, though. Right now, Lemonade is only offering auto insurance in Illinois. If their car coverages were a little more widespread, they’d definitely be higher up on this list. That said, the company has plans to expand this coverage to more states. So if you’re not from the Land of Lincoln, sit tight. Lemonade will probably be protecting your car soon enough.
Hopefully, this list helps you narrow down your options when considering which provider to bundle homeowners and auto insurance through. If you still think you need a little more information before you make a decision, we’ve got you covered.
We’ll put it simply: State Farm is an exceptional insurance provider, and for most folks, they’re going to be all you’ll ever need. Their rates are affordable, their protections are complete, and their bundles will help you save a bundle.
We’ve got to say, when we analyzed State Farm, they checked a lot of boxes.
Now when we say affordable, we don’t mean cheap. Cheap implies a subpar product that you pay next to nothing for. Easy on the pocketbook? Sure. Will you ultimately be happy with a cheap product? Probably not.
Now what you might be happy with is an affordable product; that is to say, a product that gives you a lot of value for what you’re paying. We’d argue yes, and we’d argue that’s exactly what State Farm is. They offer great coverage for a low price.
For the budget-minded, they’re a great option, especially if you bundle home and auto insurance. In fact, on average, their customers save about $1,127 a year by switching and bundling. That’s not chump change.
There is one thing to note, though. Similar to what we saw in our Geico home insurance review, State Farm is an organization that’s made up of a bunch of different, smaller insurance providers under one umbrella. This may never be an issue, but if you need to make claims on both your home and your car, you’ll probably go through two different companies. It’s not a huge deal, just something to remember.
Another well-respected name in the insurance industry, Nationwide is on our list for a reason. For one, their customer service is best in class. And you’re likely to save quite a bit of dough bundling your home and auto policies through them.
In our Nationwide homeowners insurance review, we found that by all measures they have some of the best customer service. While you might not think that’s important now, wait until you’re wading through a sea of paperwork after your car is totaled or a tree limb falls through your roof. Then you’ll appreciate having a provider that takes the hassles and headaches out of making a claim.
You’re also going to appreciate that Nationwide offers some pretty big savings when you bundle your home and auto policies. They say that customers who switch over and bundle save an average of 20 percent on their total bill. When you consider your home and auto policies probably cost somewhere around $200 per month, that’s a pretty big deal and adds up quickly.
Now one thing we should say — and we have more on this in our analysis of Nationwide’s home insurance rates — is that their base prices aren’t the cheapest. You should definitely shop around and get a few quotes before making your final decision.
The answer is a resounding … probably. There are a tremendous number of factors that go into determining home and auto insurance premiums, and you might be able to get cheaper premiums or better protections by using different providers for each.
That said, most major providers offer deep discounts when you bundle, and by having all of your insurance policies in one place, you’re going to save yourself a ton of time and effort if you have to make a claim on either or both.
At the end of the day, insurance providers want your business. As such, they want to make their policies more attractive than the other guys’. Bundling is one way they do that. Just make sure you’re doing your homework, shopping around, and understanding your options.
Simply put, you’ll save time and you’re likely to save money. As we said above, there are some circumstances that might mean bundling isn’t the right solution for you, but generally speaking, it will benefit most customers.
Food for thought: Recent research suggests that regardless of the provider, the average customer saves 16.1 percent when they bundle their home and auto policy. Do you want to leave that money on the table?
Nothing in life is black and white. We can’t say that bundling is always the right option, especially when so many factors go into determining premiums. It is possible that in certain situations, you’ll get better coverage or save some money by piecing your coverages together ad hoc, but in our experience, that’s the exception, not the rule.
Another thing to consider is that if you purchase all of your insurance through one provider, you might be less likely to shop around for better deals. For instance, we recommend that you reassess your homeowners insurance provider at least once a year. If you have everything else tied to that provider, though, you might be less likely to follow that advice.
It comes down to what you value. For ease of use, though, bundling is probably the way to go.
This is a difficult question to answer, but it’s understandably the one we get the most.
The problem is that there are so many factors that go into determining the cost of your home and auto coverage, that it’s tough to say what the average price will be. We won’t leave you hanging, though.
If we’re talking national averages, your auto insurance will run you $1,655 per year, and your home insurance will be $1,393. If we break out the old abacus, that’s $3,048. Now, if you take the national savings of bundling mentioned above — 16.1 percent, or $490.72 — you’re looking at a total of $2,557.28.
We can’t stress enough that these numbers are unlikely to be representative of what your actual bill will be, but they should give you a rough estimate.
Still looking to learn a little more about the insurance world? We don’t blame you. Once the rabbit hole opens up, you kind of want to learn all there is to know. A great place to start would be our list of the best homeowners insurance providers of 2022. You’re sure to get an education there. Stay safe out there!
How much is homeowners insurance?
It depends on a wide variety of factors, but the average cost of homeowners insurance is currently $1,393 per year, or $116 per month.
How much is auto insurance?
Factors such as the protections you’re looking for, your location, and your car’s value will greatly influence your premium, but the average cost of auto insurance in the U.S. is $1,655 per year, or $137.91 per month.
How much can I save by bundling home and auto insurance?
On average, customers save about 16 percent when they bundle home and auto insurance, but this depends on a wide variety of factors, not the least of which is which company provides that insurance.
Should I bundle my home and auto insurance?
If you’re looking to save money, bundling home and auto insurance is a great way to do it. Keep in mind that sometimes you can save more by going with separate providers depending on your specific circumstances.
What are the drawbacks of bundling home and auto insurance?
Depending on the provider, you might be able to get a better deal elsewhere. Also, when you bundle all of your insurance products through one provider, you might be less inclined to shop around periodically for better deals.