Almost every insurance mascot — from Flo to the Gecko to Jake — spends most of their ads trying to get you to bundle your insurance. And more than 55% of insured Americans do. Insurance companies love it, because they get more of your business.
While you might be interested in promised discounts and the ease of paying your policies with one bill, it’s important to shop around. So before you pick a mascot to help you build your bundle, make sure you’re getting the right coverage at a price you can afford.
What is insurance bundling?
Insurance bundling is when you combine multiple policies with the same insurer. The most common way that people bundle insurance is by combining auto and homeowners policies, but you can bundle just about any other insurance a company offers, including:
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RV insurance
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Boat insurance
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Renter’s insurance
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Motorcycle insurance
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Umbrella liability insurance
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Condo insurance
Some insurance companies like USAA and Liberty Mutual even let you bundle in your life insurance or small business insurance policies, where available.
While some insurance companies advertise bundling savings as high as 20% to 25% just for bundling, your level of risk, the coverage you need and your location all still play a factor in your rates.
For example, bundling your insurance in states like California and Florida — where homeowners policies can be more expensive and much harder to get because of environmental factors like earthquakes, hurricanes and wildfires — might lead to lower discounts.
But you’ll want to prioritize long-term fit over convenience, cautions Jacob Hale, lead acquisitions specialist at OKC Property Buyers in Oklahoma City, Oklahoma. “In storm-heavy areas like ours, policy strength matters more than bundling perks,” says Hale. “We always ask sellers and buyers to review their policies before signing anything. People skip the boring parts, and that’s where the risk lives.”
Is it always better to bundle your insurance policies?
Despite the promised discounts, bundling may not get you the best price on your insurance policies. It’s easier to research and compare one carrier’s bundle against another’s. But for the best possible price, you should also compare what your premiums could be if you bought separate policies from different companies. You might be surprised.
Some insurers offer better auto policies or more comprehensive home coverage. Some even start with a higher premium for their bundles to make it look like you saved more by bundling. But when your rates go up on your next renewal, you may lose all the discounts in your bundle overnight.
Keep in mind that premium price shouldn’t be the only factor you consider. How an insurer pays your claims can make even the cheapest premium more expensive in the long run — whether they drag their feet to pay out or pay a depreciated value (called “actual cash value” in many policies) on certain items.
Bundle or not, it’s vital that you research the company, its customer reviews and the details of each policy to make sure you get the best coverage for your premium.
We asked an expert: When should you avoid bundling?
If bundling locks you into a subpar policy or strips away flexibility, the savings aren’t worth it. For example, someone with a spotless driving record might get a better standalone auto rate elsewhere than their bundled option. In fact, I’ve had clients who saved more by splitting policies between niche carriers who specialize in their exact situation.
– Danny Ray
Founder of PinnacleQuote Life Insurance Experts, Jacksonville, Florida
Dig deeper: 5+ home upgrades that can lower your homeowners insurance premiums
Benefits of bundling your insurance
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Save money with multipolicy discounts. The most obvious benefit is the potential discount on your premiums. For example, Allstate advertises bundling discounts up to 25% when you combine home and auto insurance, while USAA offers a bundling discount of up to 10% for combining these two policies.
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Simplify your bill payments. Managing one bill instead of several makes budgeting easier and reduces the risk of missing payments. Many insurers now offer consolidated billing for all your bundled policies.
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One-stop shopping for claims and service. When you bundle, you typically deal with one agent or company for all your insurance needs. This can simplify filing claims that might affect multiple policies, like if a storm damages both your home and car.
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Consolidated deductibles. Some insurers offer the benefit of a single deductible when both your home and auto are damaged in the same covered event. This could save you hundreds, even thousands of dollars.
Drawbacks of bundling your insurance
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You might miss out on better separate policy rates. While bundling often leads to discounts, it’s not always the cheapest option. Companies like Ladder, which specializes in life insurance, don’t sell other types of insurance, meaning there’s no bundling discount available. But it might deliver stronger service for its specialty.
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Not all companies excel at every type of insurance. Not all insurance companies are well balanced in the coverage they offer. Some may have better terms for their auto policies than their homeowners, or the other way around.
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High-risk coverage may not be available for bundling. If you’re considered a high-risk driver or live in a high-risk area prone to natural disasters, specialized insurers might offer better coverage options for your needs.
When you might want to carry separate policies
Sometimes specific situations call for specialized coverage that bundled policies can’t match. For example, if you’re considered a high-risk driver or live in a high-risk location prone to floods or fire, it could make sense to prioritize getting the strongest coverage you need through separate policies to avoid compromising on one policy for a bundling discount.
The same applies to high-value homes with heavily insured possessions, classic or collector vehicles or life insurance policies that can fall short of adequate coverage when bundled.
“I wouldn’t recommend including your main life insurance policy, because typically insurance companies who focus on property and casualty insurance don’t offer the most competitive life insurance policies,” cautions Olivia McBurnett, financial representative at Peachtree Planning in Atlanta, Georgia.
Danny Ray, founder of PinnacleQuote, agrees: “You want your life policy with a provider that specializes in long-term risk and financial strength, not just the one who gave you a deal on your car insurance.” As for life insurance, Ray says it’s not an option for bundling: “It’s just an add-on to your auto or home. Most agents will claim a discount as a selling point, but in reality, the discount is from the auto or homeowners part of the bundle.”
Before going the bundling route, shop around for separate quotes — you might find that the total cost of two policies is lower than bundling your policies with your current insurer.
Dig deeper: How to switch your home insurance in 7 simple steps
How to find the best deal for your insurance coverage
Bundling or not, these tips can help you get the best possible deal for the coverage you need.
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Understand your current policies. Keep detailed notes on what your policies currently cover, your deductibles and what you’re paying for the coverage you have, which helps you compare policies and find any gaps in coverage.
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Make a date to shop for new quotes. Experts suggest shopping around for new policies at least once a year. Setting an annual or twice-annual date a few weeks before your current policies renew may help you find a better deal with another insurer.
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Review your coverage regularly. Assess your coverage annually to make sure you’re not underinsuring your property and belongings. If you’ve made big home purchases or upgrades recently, you may need to increase your homeowner’s coverage. If you’ve submitted multiple auto claims, you may need to find an insurer willing to work with high-risk drivers.
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Shop your current insurer. You may be surprised by how much your current insurer is willing to discount your premiums, especially if you let them know you’re talking to other companies. Ask about any new discounts they offer or that you may qualify for after major life changes.
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Get quotes from other companies. Ask for bundled prices as well as how much it would cost to get each policy separately. Most major carriers have calculators on their sites to help you build a policy. Some even offer comparison tools that let you review quotes from several companies. But not all of the automated tools will give you the details you need to know whether the coverage you’re getting is up to par. Sometimes calling an agent is the best way to get the real scoop.
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Compare and contrast in every way you can. Figure out who’ll give you the best price, for the most coverage and who has the highest customer ratings. If you can find all of that in a bundle, you’ll prove to yourself that bundling is worth the discount.
Dig deeper: When’s the best time to shop for car insurance? (It could be right now)
More stories in our insurance series
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How to shop for homeowners insurance: A step-by-step guide to safeguarding your investment
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9 age-smart ways to save on car insurance (that can apply to all drivers)
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Hidden home insurance benefits and perks you’re probably not using
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What to know before buying a home warranty: Is the protection worth the cost?
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Health insurance options for early retirees
FAQs: Bundling insurance policies
Find out more about how insurance works and getting the best coverage you need with these common questions. And explore more in our growing library of personal finance guides that can help you save money, earn money and grow your wealth.
What’s the difference between actual cash value and replacement cost value?
Actual cash value is the depreciated value of the item. The replacement cost value is how much it would cost to replace the item with a new one. For example, your three-year-old computer may only be worth $1,000, but you might have to pay $2,400 to replace it if it’s stolen or destroyed in a fire. Knowing which value your insurer uses on your homeowners insurance can help you decide how much coverage you need for your possessions or whether you want to pay more for stronger protection. Learn more in our step-by-step guide to shopping for homeowners insurance.
Will shopping for insurance quotes hurt my credit score?
No. Insurance companies will conduct a “soft pull” of your credit for quote inquiries, which doesn’t affect your credit score.
Do all insurers offer bundling?
Most major insurers offer bundling, but not all do. And not all insurers that bundle offer significant discounts. When shopping for insurance, consider getting quotes from companies that don’t offer bundling to make sure you’re getting the best deal on the coverage you need.
What’s the difference between stacking and bundling insurance?
Bundling means combining different types of insurance, like auto and home, with one company, usually for a discount. Stacking, on the other hand, is specific to auto insurance and lets you increase your coverage limits by combining policies or coverage across multiple vehicles. It’s useful if you want more protection in case of a serious accident.
Sources
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Insurance Savings Survey, ValuePenguin. Accessed May 21, 2025.
About the writer
Heather Petty is a finance writer who specializes in consumer and business banking, personal and home lending, debt management and saving money. After falling victim to a disreputable mortgage broker when buying her first home, Heather set on a mission to help people avoid similar experiences when managing their own finances. Her expertise and analysis has been featured on MSN, Nasdaq, Credit.com and Finder, among other financial publications. When she’s not breaking down the complexities of finance, she’s a young adult mystery writer of an internationally acclaimed series — and counting.
Article edited by Kelly Suzan Waggoner
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