- What is insurance bundling and how does it work?
- Why should I opt for bundling insurance for my home and car policies?
- How much can you save by bundling home and car insurance?
- Real-world example: when bundling really earns its keep
- How can bundling actually help you?
- How do I pick the best insurer to bundle my home and car insurance?
- What bundling does Lemonade offer?
- How else can I save money on insurance?
- Bundling insurance policies FAQs
When you bundle your home and car insurance, you’re essentially buying a combo of policies from the same insurer.
This can be simpler all around-and is also a way to unlock extra discounts and savings you could be eligible for.
TL;DR
- Bundling means buying more than one insurance policy, like home and car from the same insurer. It simplifies your coverage and can unlock a multi-policy discount on both policies at once.
- The savings are real: industry data puts the average bundle discount at around 15%, or roughly $869/year, with a typical range of 5% to 25% depending on your insurer, state, and coverage levels.
- It’s not just about price, bundling means one app, one contact, and one claims process when something goes wrong across both your home and car at the same time.
- The biggest discount isn’t always the best deal. Always compare your bundled quote against standalone quotes from separate insurers before you commit.
What is insurance bundling and how does it work?
A “bundle” is a combination of policies-like homeowners, car, pet, or life- that you buy from the same insurer.
The logic behind insurance bundling is similar to the concept of buying in bulk: The more you purchase from a single company, the better the overall price you could receive. This is often referred to as a “multi-policy discount” or a “bundle discount.”
A common combo is homeowners and car insurance. Rather than getting your homeowners insurance from Company X and your car insurance from Company Y, you choose to buy both policies from Company X.
By doing this, you not only simplify your insurance dealings (one company to contact), but you could also reap financial benefits.
Why should I opt for bundling insurance for my home and car policies?
Some of the main advantages of bundling insurance policies for your home and car, which include:
- Savings: Bundling may lead to significant discounts, lowering your overall insurance expenses.
- Simplicity: Bundling insurance policies can eliminate hassle. With a digital insurer like Lemonade, this means you’d be able to file claims for multiple policies, all through one app.
- Coverage that’s tailored to your needs: Bundling enables easier customization of policies to guard the things you value. An insurer who knows the entire insurance portfolio can give better advice about any coverage blind spots.
How much can you save by bundling home and car insurance?
More than most people expect, and the numbers are real.
Here’s what that looks like in practice. The average American household pays around $1,400 per year for homeowners insurance and roughly $2,300 for full-coverage car insurance – a combined spend of about $4,700. A 15% discount applied to that total comes out to over $700 back in your pocket annually, without changing a single coverage limit.
And the discount often applies to both policies at once, not just one.
What a bundle discount actually looks like (approximate figures)
| Without bundling | With bundling (est. 15% discount) | Est. annual savings | |
|---|---|---|---|
| Homeowners insurance | ~$2,543/yr | ~$2,162/yr | ~$381 |
| Car insurance | ~$2,144/yr | ~$1,822/yr | ~$322 |
| Combined | ~$4,687/yr | ~$3,984/yr | ~$703 |
Figures are national averages for illustrative purposes. Your actual savings depend on your insurer, state, coverage levels, and individual profile.
The exact discount varies. Some carriers apply a larger percentage to auto and a smaller one to home. Others offer a flat multi-policy rate reduction across both. The only way to know your number is to get a quote – but the floor is consistently meaningful.
Real-world example: when bundling really earns its keep
Say a severe hailstorm rolls through your neighborhood. The hail dents your car roof, damages your windshield, and punches holes in your home’s roof at the same time, a scenario that’s more common than most homeowners expect.
Without a bundle, that’s two separate insurers, two separate adjusters, two separate claims processes, and possibly two separate deductibles.
With a bundled policy, you’re working with one insurer who already has your full picture. One call, one claim workflow, and – depending on your insurer’s terms – potentially a single deductible applied to the entire event.
The financial and logistical difference can be significant. This is exactly the scenario bundling is built for.
The caveat worth knowing
The biggest discount doesn’t always mean the lowest total bill. A 20% discount applied to a high base rate can still leave you paying more than a 10% discount from a more competitively priced carrier. Always compare your bundled quote to standalone quotes from separate insurers before you decide.
How can bundling actually help you?
Well, imagine this scenario: A burglar breaks into your home’s garage and steals your car.
If you have comprehensive car insurance coverage in your car insurance policy, it will likely cover the stolen vehicle if it can’t be recovered. Meanwhile, any damage to your garage or home (like a smashed window or broken door) could be covered by homeowners insurance.
If you bundle your homeowners and car insurance policies through the same insurer, you could file all those related claims in one place.
How do I pick the best insurer to bundle my home and car insurance?
When you’re bundling insurance policies, choosing an insurer that’s the right fit involves a few key considerations:
- Evaluate your needs: Which types of policies do you need? Homeowners, car, life, pet? How complex are these needs? The more policies you require, the greater the potential benefits from bundling.
- Compare insurance quotes: Verify the best prices for the insurance policies you need, including the additional bundle discounts offered. Make sure you include the same coverages in each quote for accurate comparisons.
- Read customer satisfaction reviews: Check the insurer’s reputation via online reviews and app store ratings. Bundling all your insurance needs with one provider is a winning idea if the insurer’s services are top-notch.
- Examine coverage quality: Make sure that the coverage options offered in the bundle align with your needs and don’t overlook key areas. Sometimes, insurers may cut corners in bundles to provide lower premiums.
What bundling does Lemonade offer?
Lemonade offers renters, homeowners, car, pet, and life insurance, and bundling any combination of our insurance products together will unlock savings.
In addition to the obvious savings, you gain the convenience of accessing all your policies (and filing all claims) through a single, easy-to-use mobile app.
Click below to get your free quote started, with any combination of policies.
How else can I save money on insurance?
In addition to bundling, here are a few ways to reduce your insurance premiums and secure discounts:
- Consider reducing your coverage limits-but don’t forget that this could leave you under-insured if a disaster occurs.
- Increase your deductible, or the amount you’d be responsible for paying out-of-pocket in the event of a claim. This may reduce your monthly premiums, but would increase your out-of-pocket costs later on a future claim.
- Install security devices in your home, such as fire or burglar alarms, which can lead to savings and discounts.
- Maintain safe and low-mileage driving habits to earn potential savings on your car insurance.
Bundling insurance policies FAQs
Can I add a policy to my bundle after I've already purchased it?
Generally, yes. Most insurance companies, including Lemonade, will let you add policies to your existing bundle, and you should still receive a discount for the additional policy.
What happens to my bundle if I have to make a claim on one policy?
The impact on your bundle depends on your insurance company’s policies. Some might increase your insurance rates for all policies in the bundle, while others might only increase the rate of the policy with the claim. At Lemonade, we wouldn’t penalize you by increasing your rates on other policies.
Can I cancel one policy in a bundle without affecting the others?
Yes, you can typically cancel one policy without affecting or having to cancel the others. However, this would probably lead to the loss of your bundling discount.
Is bundling home and car insurance the same with every insurance company?
No, the specifics of bundling-including the available discounts, the policies you can bundle, and the rules around claims and cancellations-can vary significantly between insurance companies. Always check the specific terms with your provider. The details of how bundling operates varies between insurance companies. Some might require that all of the policies in the bundle be activated at the same time, while others permit staggered start dates.
**What is a multi-policy discount?**
A multi-policy discount, sometimes called a bundle discount or multi-line discount – is a price reduction you receive for buying more than one type of insurance from the same company. The most common version is home and car insurance purchased together, but many insurers extend the discount to renters, pet, and life insurance as well.
The more policies you consolidate with one insurer, the larger the potential discount. It’s typically one of the highest single discounts available to policyholders, and one of the easiest to qualify for.
Does bundling home and car insurance affect my coverage?
No. Bundling affects your price, not your protection. When you bundle, each policy still has its own coverage limits, deductibles, and terms – the discount is applied to your premium, not traded for thinner coverage. That said, it’s always worth confirming that no coverage limits were quietly reduced when you switched to a bundle rate. Review each policy’s declarations page to make sure your limits are where you need them to be.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC. The statements do not apply to policies underwritten by other carriers.
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