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HomeBundling Discounts

Home and Auto Insurance Bundle: How Much Can You Save in 2026?

Bundling home and auto with the same insurer is the most commonly available single insurance discount. Typical savings are 10 to 25% on your combined premiums. But bundling is not always the best deal. Here is the complete picture.

Home + Auto Bundle Discounts by Company

CompanyAdvertised DiscountEst. Dollar SavingsNotes
American FamilyUp to 40%Up to $914/yrHighest advertised discount. Available in 19 states.
State FarmUp to $1,273/yr~18-22%Dollar savings advertised, not percentage. Varies significantly by state.
Liberty Mutual$950+/yr~20-25%Dollar amount advertised. Requires both home and auto policies.
AllstateUp to 25%Up to $571/yrBundled as DP&H (Drivewise) + home. Widely available.
NationwideUp to 15%Up to $343/yrMulti-policy discount stacks with other discounts.
USAAUp to 10%Up to $228/yrMilitary and family members only. Lower discount but already lowest base rate.
FarmersUp to 10%Up to $228/yrHigher base rates offset the discount vs competitors in many markets.
ProgressiveUp to 10%Up to $228/yrHome underwritten by third parties in many states. Verify the home insurer's AM Best rating.
TravelersUp to 10%Up to $228/yrStrong auto program. Home pricing competitive in some markets.

Dollar savings estimates based on national average home insurance premium of $2,285/yr. Actual savings vary by state, coverage levels, and individual risk profile. Sources: company websites and U.S. News 2026 data.

When Bundling is NOT the Best Deal

The bundle discount only makes sense if the insurer is competitive on both lines. Here is a worked example showing when buying separately beats bundling.

Bundling Scenario

Company X home insurance$2,200/yr
Company X auto insurance$1,800/yr
Combined before discount$4,000/yr
15% bundle discount-$600/yr
Total bundled cost$3,400/yr

Buying Separately (Better Deal)

Company Y home insurance (cheapest)$1,750/yr
Company Z auto insurance (cheapest)$1,400/yr
Total separate purchase$3,150/yr
Annual saving vs bundle$250/yr
No bundle discount applied$0

In this example, getting each policy from the cheapest provider beats the bundle by $250/year even without the discount.

What Else Can You Bundle With Home Insurance?

Auto Insurance
10-25% discount

Most common bundle. Available from nearly every major insurer.

Umbrella Policy
5-10% discount

Adds $1M+ liability coverage. Often required to be purchased with home or auto.

Boat / Watercraft
5-15% discount

Available from State Farm, Nationwide, Progressive, USAA, and others.

RV / Motorhome
5-10% discount

Bundled with home or auto at major carriers.

Life Insurance
3-8% discount

Some insurers offer multi-line discounts that include life policies.

Renters Insurance
5-10% discount

Relevant if you own a rental property or transition from renting to owning.

Frequently Asked Questions

How much does bundling home and auto save?
Bundling home and auto insurance with the same insurer typically saves 10 to 25% on your combined premiums. Some companies advertise higher discounts: American Family up to 40%, State Farm claims up to $1,273 per year, and Liberty Mutual advertises $950+ per year. However, actual savings depend on your state, home profile, and how competitive the insurer is on both lines.
Is bundling home and auto always the best deal?
Not always. If the cheapest home insurer and the cheapest auto insurer are different companies, buying separately can save more than the bundle discount. Compare the bundled total against the sum of your cheapest individual quotes. The bundle only wins if the combined discounted price is lower than the sum of the two cheapest individual policies.
Which company offers the best home and auto bundle discount?
American Family advertises the highest bundle discount at up to 40%, but is only available in 19 states. State Farm and Allstate are widely available and competitive. For military members and families, USAA already offers the lowest base rates and the bundle discount stacks on top. The best bundle depends entirely on your specific state and risk profile.

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