Rising Insurance Premiums: Benefits of Bundling Auto and Home Coverage

NEW YORK, NY — Rising insurance premiums are affecting homeowners and car owners alike, pushing many to consider bundling their policies. In 2025, auto insurance rates increased by over 11% according to the U.S. Bureau of Labor Statistics, while homeowners insurance costs also saw significant rises.

Insurance bundling, which involves purchasing multiple types of coverage from the same provider, can lead to substantial savings. Companies often provide discounts ranging from 5% to 30% when consumers combine auto and homeowners insurance. This practice not only helps reduce monthly expenses but simplifies premium management as everything is centralized in one policy.

For instance, State Farm boasts the largest discount, averaging nearly 25% off when customers insure both auto and home. Additionally, discounts can extend to life insurance and specialty plans, enhancing savings further.

Insurance providers like Amica offer up to 30% in savings for bundling. On the other hand, Geico and Lemonade also provide competitive discounts, with savings dependent on the policy details and location.

Several studies indicate bundling insurance can significantly mitigate financial stress for policyholders, especially in challenging economic times. The costs for renters insurance, typically just $24 a month, can often be entirely covered by the bundling discount.

Consumers are encouraged to compare company rates carefully. While bundling often results in better pricing, it may not always be the cheapest option available. Finding the right balance between savings and coverage requires diligent research.

The trend toward bundling is driven by the potential for savings and convenience, making it an appealing option for many insurance consumers.