8 Best Home and Auto Insurance Bundles of 2023

When the worst happens, you want one of the best auto and home insurance companies on your side to replace damaged property, protect you from liability and cover associated medical expenses. If you have both a car and a house, bundling your home and auto insurance by purchasing both from the same insurer can be convenient and a great way to save on your premiums.

All home and auto insurance companies offer different rates, discounts for bundling, policy features and more. Read on so you can find the bundle that best meets your needs and learn each company’s AM Best and J.D. Power ratings. These scores will give you a good idea of the insurers’ financial strength and levels of customer satisfaction.

Our Top Picks for Best Home and Auto Insurance Bundles

• Farmers - Best for Discounts
• Progressive - Most Affordable
• AARP - Best for Retirees
• USAA - Best for Military Members and Veterans
• State Farm - Best for Bundle Discount
• Lemonade - Best for Online Option
• Amica Mutual - Best for Customer Service

Best Home and Auto Insurance Bundles Reviews

Best for Discounts: Farmers

Why we chose it: Farmers' rates aren't the lowest on the market, but the company boasts an abundance of discounts that few other insurers offer.

While providing a discount for bundling home and auto insurance is fairly standard in the industry, Farmers goes above and beyond by offering a whopping 22 car insurance discounts — far more than what's provided by other companies — along with several discounts specifically for homeowners insurance.

You can get discounts by enrolling in paperless billing, being a nonsmoker, or simply paying your premiums on time. Farmers also offers discounts for those in certain professions, like teachers, doctors, police officers and members of the military.

The company allows customers to bundle many types of insurance aside from just homeowners and auto, including life, umbrella, small business and specialty insurance policies.

According to the insurer, customers who switch their home and auto insurance policies to Farmers can save an average of 20% by bundling. However, home and auto bundling isn't available everywhere, as Farmers doesn't offer home or auto insurance in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, or West Virginia.

Most Affordable: Progressive

Why we chose it: Though Progressive's bundle discount for existing customers is less than many other insurers, Progressive lands on this list for its excellent rates, which are particularly low for young drivers in high school and college.

If you need to insure your entire family, the company offers a good student discount for students who maintain a B average throughout the school year, as well as a distant college student discount for drivers 22 and under who travel more than 100 miles to campus.

Progressive has a number of tools to help you save on your premiums, including a comparison tool to help you compare different quotes and a drive-monitoring program that rewards drivers for safe driving behavior. The company's Name Your Price tool lets you input your budget to find affordable plans.

According to Progressive, existing customers who bundle home and auto insurance save an average of 4%, which is much less than what many other companies offer, while new customers who switch to Progressive can save over 20%. The discount is applied to your auto policy.

Also, Progressive doesn’t underwrite its own home insurance policies, instead relying on a network of other companies, which some see as a negative.

Best for Retirees: AARP

Why we chose it: AARP serves people who are 50 years or older and gives members access to additional perks and savings that non-AARP members don't receive. AARP members who bundle home and auto can save up to 20%, with savings applied to their homeowners policies.

AARP's home and auto insurance program, provided in partnership with The Hartford, caters to the 50 and over crowd. While non-AARP members can still get home and auto policies from The Hartford through independent insurance agents, AARP members receive access to additional perks and savings.

Home and auto bundles through AARP can include unique coverage like new car replacement, which pays out if your new car is totaled, and green rebuilding, which increases your homeowners policy limits by up to 10% to pay for environmentally friendly repairs to your home. However, coverage isn't available in every state, and AARP's auto policies receive higher-than-normal complaints.

Best for Military Members and Veterans: USAA

Why we chose it: USAA ranks among the best auto and home insurance companies because it offers home and auto insurance for active military, veterans, and qualifying family members.

USAA customers who already have an active auto policy can save up to 10% off their total premium when they bundle with home insurance. While this discount isn't as high as what's offered by many other companies, USAA has low rates overall, which can still yield significant savings.

USAA has a high J.D. Power score for customer satisfaction and offers various benefits catering to military members. These include coverage for uniform and equipment costs and discounts for living on a military base.

Best for New Customers: State Farm

Why we chose it: State Farm reports a generous average annual per household savings of $1,073 for new customers who bundle home and auto insurance. State Farm also offers excellent customer service, with stellar customer satisfaction ratings from J.D. Power, particularly for its auto claims process.

Though State Farm doesn't offer some common add-ons like accident forgiveness, others like roadside assistance and rental car reimbursement are available. It’s also among the best high-risk auto insurance companies for young drivers and those with DUI convictions.

Best for Online Option: Lemonade

Why we chose it: Lemonade is an online-only company. The company uses artificial intelligence to provide extremely fast claim payments and insurance quotes through its mobile app.

Though most major insurers have mobile apps, Lemonade's digital experience is unprecedented in the industry. Policyholders just have to press a button in the app and fill out the necessary information to make a claim. The company says that many payouts are made in just minutes.

Bundling home and auto insurance with Lemonade can save customers up to 10% on each of their two premiums. However, home and auto bundles from Lemonade have very limited availability because auto insurance is only available in five states (Illinois, Ohio, Oregon, Tennessee, and Texas), though the company says it plans to expand in the future.

The way Lemonade funds its operations is unique, too, with a mindful approach to profits. The company adds a flat fee to every policy's premium, and then up to 40% of premiums that aren't used to pay out claims are donated to a nonprofit organization of your choosing. Lemonade reports total donations of more than $6 million over the lifetime of the company.

Though Lemonade isn’t evaluated by AM Best, it is rated by Demotech, a financial analysis firm that releases its own Financial Stability Ratings. Demotech gives Lemonade an “A” (exceptional) rating. And while Lemonade doesn’t have customer satisfaction ratings with J.D. Power for homeowners insurance or auto claims, the insurer ranks second nationwide for renters insurance with a score of 853.

Best for Customer Service: Amica Mutual

Why we chose it: Amica Mutual's customer service is the best out there, topping the list on J.D. Power's 2022 U.S. Home Insurance Study and J.D. Power's 2022 Auto Claims Satisfaction Study.

In addition to unbeatable customer service, Amica Mutual offers a unique perk that sets them apart from other insurers. They have a database of licensed and vetted contractors to help you find someone to complete home improvements and repairs quickly and easily.

Amica Mutual's bundle discount is up to 30%, depending on which policies you bundle and what state you’re in. The company also offers discounts for loyal and claims-free customers, as well as unique benefits like lock replacement if your keys are stolen and free airbag replacement after your airbag deploys. Unfortunately, however, a home and auto insurance bundle through Amica Mutual isn't available in Alaska or Hawaii.

Other companies we considered

The 8 home and auto insurance companies reviewed above stood out among the crowd, but additional high-quality options are available. Here are some popular companies that could also fit your insurance needs.

Allstate

Although Allstate offers a large bundle discount relative to other insurers — a savings of up to 25% — its premiums are typically on the higher side, making it a less affordable option for many people. Allstate is nationally available and offers usage-based programs, which might help drivers with good records save money, but it falls short in overall features and customer satisfaction when compared to others on this list.

Costco

Costco sells home and auto insurance through CONNECT, powered by American Family (AmFam), one of the nation's largest insurers with above-average J.D. Power Scores for both homeowners insurance (842/1000) and auto claims (874/1000).

Though Costco members receive several perks, such as free roadside assistance, Costco's policies tend to be more expensive than average, even with a bundle discount. This is partly because the minimum coverage offered by AmFam CONNECT may be greater than the minimum required in your state. This makes it not an ideal choice if you typically buy only the minimum coverage required in your state, which may be less protection than experts recommend.

Experts recommend a plan with liability coverage of at least 100/300/100 for the average driver — $100,000 in bodily injury per person, $300,000 per accident and $100,000 in property damage liability coverage per accident. Policyholders may also find the company's claim policy difficult to navigate.

Costco insurance is not available in Alaska, Louisiana, Maine, North Dakota, Rhode Island, or Wyoming.

Home and Auto Insurance Bundles Guide

There are a few key things you need to know as you shop around for the right home and auto insurance bundle. Though each individual policy is different, this guide will help you learn more about the benefits of bundling and what to expect.

Main things to know before choosing home and auto insurance

What is homeowners insurance, in the first place? What goes into a car insurance policy? If you're unsure, you should start by reading up to understand some common insurance terms. Here are a few to get you started:

• Deductible - This is the amount you'll pay out of pocket before your insurance kicks in for both homeowners and car insurance. Typically, you can choose your deductible up to a certain amount. You'll likely have a lower premium if you select a higher deductible.

• Premium - This refers to the price you'll pay for insurance, either monthly or yearly.

• Liability Coverage - Liability coverage pays medical and legal bills, up to your policy maximum, if someone is hurt in a car accident or on your property due to negligence. The minimum liability coverage you must have for car insurance is set by the state you live in, and for homeowners insurance, it's set by your mortgage lender.

• Dwelling Coverage - The amount of dwelling coverage you need with your homeowners insurance is determined by the cost to rebuild your home if it's destroyed in a fire or other disaster. This includes material and construction costs. Your insurance company can help you estimate the right amount, and your mortgage lender may have requirements.

• Contents Coverage - Contents coverage can reimburse you if personal possessions covered by your home insurance policy are stolen or damaged. Note that high-value items like expensive jewelry and rare artwork may not be automatically covered.

• Riders - Riders are extra coverages that you may or may not choose to add to your policy. For example, you may decide to insure your engagement ring with a rider because of its high value.

Once you understand what goes into home insurance coverage and auto policies, contact at least three different companies to compare cost and coverage. You'll also need to consider any additional insurance you may be required to purchase, such as flood insurance.

Be sure to seek out the right amount of coverage, too. You don't want to be underinsured, but you should also avoid paying for more than you need. Documenting personal property, estimating costs to replace possessions and working with your chosen carrier to determine necessary dwelling coverage are essential steps in this process.

What is the average cost of a home and auto insurance bundle?

A lot goes into home and car insurance costs, which are different for every person, house and vehicle. Car and home insurance companies determine rates based on a person's driving record, home value, credit score, demographics and more — just to name a few factors.

Requesting quotes is the best way to find out what your specific home and auto insurance bundle will cost. However, the national average for an annual premium is $2,730. Bear in mind, with the average household having more than one car, and this average could run much higher based on your specific details. If you're on a tight budget, you might look into some insurers that are best for cheap car insurance.

How to bundle your home and auto insurance?

Bundling home and auto insurance is simple! Once you've determined how much coverage you need and which company you'll go with, you just need to buy both policies with the same insurer to qualify for a multi-policy discount. Note that while it may seem like you're getting a combined auto-home insurance policy, that's normally not the case. Rather, your homeowners insurance and auto insurance will likely be written as two separate policies.

If you're wondering how to buy car insurance and homeowners insurance in the first place, you can either do so online or through an insurance agent, depending on what the insurer offers and how much personalized customer service you need.

If you already had home and auto insurance policies with another carrier, be sure to cancel them once you have your new policies in place. But before you do, check to find out if quitting your current company means that you’re giving up loyalty perks like discounts or accident forgiveness. Insurance rates change frequently, so you should shop around every year or so to make sure you're getting the best possible price.

If you need to insure your business fleet, bundling may also be available through commercial auto insurance companies when you purchase both business insurance and commercial auto insurance.

What are the benefits of bundling home and auto insurance?

Bundling your home and auto policies can generate significant savings with reduced premiums and make handling your insurance much more convenient with a single carrier. An independent data analytics firm reported to USAToday that the average savings for bundled home and auto insurance is 14%.

Additionally, billing may be more streamlined, and you might qualify for a single deductible. This means that if your home and car are both damaged in a covered event, you may only need to pay one deductible instead of two. For example, say a storm knocks over a tree in your yard, damaging your roof and your vehicle. With bundled home and auto insurance, you may only need to pay one deductible. You'll also have the added benefit of only having to make a claim with one company rather than dealing with two separate companies with different claims processes.

Bundling can also help you save if your premium is higher because you need high-risk auto insurance.

While bundling can provide many benefits, keep in mind that it may not be available to everyone, for example, if you live in a state where your chosen provider doesn’t offer both home and auto insurance or if your home policy has been switched to a high-risk home insurance company because of a personal liability claim. In some cases, it can also limit your ability to obtain certain specialized coverage. Shop around to ensure that you're getting the right price, whether that's by bundling or by purchasing separate policies.

How We Found the Best Home and Auto Insurance Bundles

We looked at dozens of the most popular insurance companies and compiled this list of bundles from the best auto and home insurance companies based on the following factors:

• Cost, Coverage and Benefits: We narrowed our choices based on policy features, average annual premium, bundle discount, other available discounts, customer service, claims processing speed and additional benefits.

• Satisfaction Rating: We used J.D. Power's 2022 U.S. Home Insurance Study and J.D. Power's 2022 Auto Claims Satisfaction Study to gauge customers' overall satisfaction with each insurer and the claims process.

• Customer Complaints: We evaluated each insurer's car and home insurance complaint ratio with data from the National Association of Insurance Commissioners (NAIC).

• Financial Strength Rating: We looked at each company's financial strength rating from AM Best to ensure they're stable and in good standing.

Summary of the best home and auto insurance bundles of 2023

• Farmers - Best for Discounts
• Progressive - Most Affordable
• AARP - Best for Retirees
• USAA - Best for Military Members and Veterans
• State Farm - Best for Bundle Discount
• Lemonade - Best for Online Option
• Amica Mutual - Best for Customer Service