Bundling auto and home insurance with the same company typically yields a discount ranging from 5% to 20% on the combined premium, depending on the insurer, your risk profile, and the specific policies involved.
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How insurers calculate the bundle discount
Insurance firms assess the overall risk of a household; covering multiple lines reduces administrative costs and perceived risk, so they pass a portion of those savings back to you.
Key factors that affect the discount amount
- Company underwriting guidelines and loyalty programs
- Claims history for both auto and home policies
- Coverage limits, deductibles, and optional add‑ons
- Geographic location and local market competition
Typical discount ranges by market segment
| Market Segment | Typical Discount | Notes |
|---|---|---|
| Large national carriers | 10%–15% | Standard bundling offers; higher discounts for long‑term customers |
| Regional insurers | 12%–18% | More aggressive pricing to gain market share |
| Direct‑to‑consumer brands | 5%–12% | Lower overhead can translate to modest savings |
When the discount may be lower or higher
If you have a clean claims record and choose higher deductibles, insurers often increase the bundle discount beyond the baseline range. Conversely, recent claims, low credit scores, or high‑risk vehicles can shrink or eliminate the discount.
How to maximize your bundling savings
Shop multiple quotes, ask about loyalty or multi‑policy credits, and consider adjusting coverage limits to align with your risk tolerance. Even a small percentage improvement can mean hundreds of dollars saved annually.