Bundling your home and auto insurance can be one of the fastest ways to cut monthly costs and simplify your coverage — but the best option depends on where you live, what you insure, and how you file claims. In 2025 the market still favors multi-policy discounts, but winners vary: some carriers offer deep price cuts, others deliver faster claims or broader add-ons. This guide walks you through the top bundles, how bundling actually works, and practical steps to avoid pitfalls so you keep protection without paying more than necessary.
We follow a fictional homeowner, Laura, who moved suburbs in 2024 and wanted to lower premiums while keeping strong protection for her house, car and valuables. Laura’s journey — quotes, trade-offs, and eventual savings — illustrates the real choices consumers face when comparing State Farm, GEICO, Progressive, Allstate, Liberty Mutual, Nationwide, USAA, Farmers Insurance, American Family Insurance and Travelers.
Best home and auto insurance bundles for big savings in 2025
If you want the largest discounts, some insurers consistently stand out. Each carrier balances price, availability and policy options differently — so the ideal pick depends on your priorities.
- State Farm — Best for large discount: multi-policy savings can reach up to 25% on combined home and auto.
- Amica — Best for flexible bundling: save up to 30% when combining auto with home, umbrella and life policies.
- GEICO — Best for affordability: low average auto premiums and widely available home options underwrite by partners; bundling savings vary by state.
- Nationwide — Best for broad availability: bundling can save up to 15% and the company offers annual coverage reviews.
- USAA — Best for military families: exclusive membership with discounts around 10% and policies that cover deployment-related scenarios.
- Farmers Insurance — Best for add-ons: many optional coverages with a typical bundling benefit of about 10–20%.
Laura started by requesting quotes from several of the names above and found State Farm’s bundle gave her the biggest headline discount, while GEICO’s base auto rates kept monthly cashflow lower. Key insight: highest discount ≠ best overall value.
How bundling home and auto insurance actually works
Bundling simply means buying multiple lines from the same insurer. Most companies call it a multiline, multipolicy or multi-policy discount.
- Sign up for both policies with the same effective dates to avoid lapses.
- Insurer verifies prior coverage and issues a multi-policy discount applied to your premium.
- Some companies require a minimum number of policies for the top-tier discounts (e.g., home + auto + umbrella).
Numbers matter: the largest bundling reduction reported in market comparisons is about 25% for a home-and-auto combo; other companies advertise 10–30% depending on the product mix.
Laura learned that insurers sometimes waive the lower deductible on dual claims and that digital-first carriers speed up claims processing — a factor that ultimately influenced her pick. Key insight: timing and policy alignment are as important as the discount percentage.
Compare coverage, claims experience and state availability
Choosing a bundle requires more than comparing discounts. Coverage limits, claims service and whether the insurer writes business in your state determine real-world value.
- Claims speed: Lemonade and other digital-first carriers settle some claims in minutes; consider this if fast payouts matter.
- Availability: Nationwide represents wide licensing in most states, while USAA restricts eligibility to military families.
- Add-ons: Farmers and Allstate offer niche endorsements like rideshare or new-car replacement that may be critical for some drivers.
Practical tip: request identical coverage limits from three carriers — for example State Farm, Liberty Mutual and Travelers — then compare premiums and endorsements. Laura discovered that one carrier’s lower premium hid narrower replacement cost terms, so she chose slightly higher-priced protection with better limits. Key insight: read coverage details, not just the premium.
Case study: small business owner combining personal and commercial needs
Our secondary character, Marcus, owns a coffee kiosk and wanted to bundle his personal auto and homeowners policy while keeping his small-business coverage. He used a staged approach to minimize gaps.
- List essential coverages for home, auto and business (liability, property, business interruption).
- Collect quotes for personal lines from carriers with strong bundling offers like State Farm and Nationwide.
- Keep business insurance separate if bundling would reduce options — compare through this small-business guide.
Marcus ultimately bundled his home and auto with a national carrier for a cost cut of nearly 18%, while purchasing a specialized business package from a dedicated commercial insurer. Key insight: bundling personal lines can coexist with tailored business coverage.
Step-by-step: bundle without losing coverage or triggering fees
Follow a careful checklist to switch policies without service interruptions or penalties.
- Compare quotes using the same coverage limits and deductibles.
- Check for early cancellation fees on existing policies and time new policy starts to match old end dates.
- Notify your mortgage lender if homeowners insurance changes.
- Ask about combined deductible waivers or accident forgiveness that apply to bundled customers.
- Document endorsements and keep copies of both old and new policies until refunds and cancellations are finalized.
For readers in specific situations, consult targeted resources such as our tips for auto coverage at Car Insurance Tips 2025 or ways to Reduce Home Insurance Premiums. Laura used this exact checklist and avoided a one-month double payment while securing a better claims hotline. Key insight: organization prevents costly lapses.
Common bundling pitfalls and how to avoid them
Bundling can save money, but certain traps erode benefits if you’re not careful.
- Assuming the bundle is always cheapest — sometimes two specialized carriers beat a bundle.
- Ignoring state-specific exclusions — for example, flood exposure may not be part of a standard homeowners policy.
- Overlooking policy limits on high-value items — jewelry or collectibles often need scheduled coverage.
Before switching, verify specific scenarios like flood claims or condo rules: see our resources on flood insurance claims and the Condo HO6 guide. Laura almost lost favorable water-backup coverage when switching; a careful clause check saved her from a future gap. Key insight: read exclusions and endorsements carefully.
Providers to watch in 2025: what each brings to a bundle
Each major insurer brings a distinct mix of strength. Below are quick notes to guide selection.
- State Farm: market leader for multi-policy discount and large agent network.
- GEICO: low-cost auto roots and partner underwriters for homeowners policies.
- Progressive: strong multi-policy options and average bundle savings around 5%.
- Allstate: broad endorsements and claims network with local agents.
- Liberty Mutual: flexible coverage add-ons and regional promotions.
- Nationwide: wide licensing and annual policy reviews to keep limits relevant.
- USAA: military-only membership with tailored protections for service life.
- Farmers Insurance: many discounts and optional coverages for unique risks.
- American Family Insurance: competitive regional offerings and personalization.
- Travelers: strong homeowners options and risk-management tools for higher-value homes.
Use this snapshot to narrow finalists, then request layered quotes. Key insight: match carrier strengths to your individual risks.
Does bundling always save money?
Not always. Bundling often reduces premiums, but in some cases separate specialized carriers may offer lower combined costs. Always request quotes using the same coverage limits before switching.
How much can I expect to save by bundling home and auto?
Savings vary by carrier and state. Typical ranges in 2025 are between 10% and 25%; some combinations (adding umbrella or life) can push total savings higher.
Will bundling affect my claims service or deductible?
Bundling can improve convenience and may lead some insurers to waive the lower deductible in certain scenarios, but claims handling depends on the carrier’s service model. Digital insurers like Lemonade may settle certain claims faster; legacy carriers often provide broader in-person support.
Should I bundle if I own a small business?
You can bundle personal lines while keeping commercial coverage separate. Many small business owners find better commercial protection by comparing specialized business insurers while bundling personal home and auto for savings. See our small-business insurance guide for detailed steps: https://www.insuranceprofinder.com/business-insurance-small-business/
What is the safest way to switch policies without a coverage gap?
Start the new policy to begin the day your old policy ends, confirm lender notifications if you have a mortgage, and ask for pro-rated refunds from the previous insurer. Use our step-by-step checklist and review both policies for exclusions before cancelling the old one.