If you rent your home and own a car, you likely need two types of insurance: renters insurance and auto insurance. The policies can protect you and your belongings, as well as limit your liability, in an accident, making the cost, when the unforeseen happens, all the more palatable. But that doesn’t mean you shouldn’t look for savings.
Getting both policies from the same insurer — a strategy called bundling — could help you save, with policy holders locking in as much as $659 annually. That’s more than enough to entirely cover your renters insurance.
And, bundling’s benefits go beyond cost: It can make it easier to manage your policies and may even help you save on your deductible if you have to file claims on both policies at the same time.
Here’s what you should know about bundling, including how to do it and how much you can save.
Bundling renters and auto insurance
How much can you save by bundling renters and auto insurance?
“You’ll see discounts of anywhere between 5% and 25% depending on the company, and that’s usually on both policies,” says Leslie Kasperowicz, an executive editor at Insurance.com since 2022 and formerly a Farmers Insurance customer representative. “Often the discount is a little higher on the auto policy than it is on the on the renters policy.”
The average full coverage auto insurance policy in 2025 costs $2,638 a year per Bankrate data. A bundling discount of just 10% on such a policy might lead to savings of just over $263 per year, while a discount of 15% would equate to about $395 in savings. A 25% discount would earn an average priced policy a savings of about $659.
And, compared to the cost of renters coverage, these discounts are quite large. “Renters insurance is actually really cheap, and our most recent numbers have it in about $24 a month on average,” Kasperowicz says, or about $288 per year.
“You might see such a savings that you’re almost not paying any more for the renter’s insurance policy than you were for just auto,” adds Kasperowicz.
Pros and cons of bundling renters and auto insurance
If you’re considering getting an insurance bundle, here’s what you need to know:
Pros of bundling renters and auto insurance
- You’ll get a discount: With bundling discounts between 5% and 25% on each policy, your savings could be significant. Given the low cost of renters policies and auto insurance premiums that have been on the rise the past few years, your discount might offset the cost of your renters policy.
- Bundles make managing a policy easier: With a bundle, there are fewer things to keep track of. “You get one bill and one renewal date,” Kasperowicz says.
- You may only have to pay one deductible, even if you file a claim on both policies: If, for example, your car window is smashed and your laptop was stolen, you’d typically have to pay two separate deductibles. You’d pay one for your renters insurance to cover your personal property and one with your auto policy’s comprehensive coverage to repair the damage to your car. Some companies, including Progressive, offer the ability to just pay one deductible if you have to file two claims at once.
Cons of bundling renters insurance
- You may not get the best price: Every insurance company considers your information and calculates prices differently. You may find that the company that offers you the best price on renters insurance offers you a significantly higher price on car insurance than you’d pay elsewhere, even without the bundling discount. This is especially true for those with negative marks on their driving records.
- You may become less likely to shop around: J.D. Power data found that those who bundle their insurance policies stay with that insurer for nearly a year and a half longer than those who don’t bundle. While that’s great for insurance companies, it could mean you miss out on the best price. Comparison shopping every six months to a year for any bundle can help you be certain you’re still getting the best price.
- Not every insurer offers both types of coverage: If you want a specific feature, like a usage-based auto insurance policy, or you need to work with a company that specializes in high-risk drivers due to a DUI, for example, bundling may not be for you. If the insurer you need to work with doesn’t offer renters and auto insurance together, getting two separate policies might be the best move.
Should I bundle renters and auto insurance?
“A lot of times bundling is the best deal, but it’s not always,” Kasperowicz says.
“I always tell people, get quotes for auto and renters insurance separately and get quotes for them together.” As you gather quotes, keep an eye out for renters and auto insurance policy prices that are significantly lower than others.
Some people with tickets or accidents on their driving record, or who have filed several prior renters insurance claims may find that bundling isn’t the best move. “It may be a case where your particular profile either as a driver or as a renter means one particular company charges you a lot more for one policy than another company would. So sometimes getting two separate policies from two separate companies is cheaper,” Kasperowicz says.
How to bundle renters and auto insurance
If you’ve determined that bundling is the best move for you, doing it is fairly simple.
To start, shop around for both policies and gather the information you’ll need. For auto insurance, this includes your car’s VIN number, make, model and mileage, as well as your drivers license number. For renters insurance, you’ll need some information on the total value of your belongings, and some information about your unit.
Get several quotes from insurers you trust. To help you get started with your shopping, CNBC Select combed through companies that offer both types of coverage and picked several standouts. We chose Erie’s renters and auto insurance as a top choice for customer satisfaction.
Erie Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Erie Insurance offers auto insurance for many different situations and affordable premiums. Several different coverages allow you to customize your policy.
Erie Renters Insurance
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Availability
Erie renters insurance is available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, D.C.
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Coverage limits
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Policy highlights
Policies cover personal property damage, personal liability, loss of use and medical expenses for others. Replacement cost coverage is standard
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Add-ons
identity theft, home-sharing, sewer and drain backup, high-end items
We also highlighted Lemonade for those who don’t drive much and want to bundle renters insurance.
Lemonade Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you’re sued for liability and if your car gets stolen
Lemonade Renters Insurance
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Availability
Lemonade renters insurance is available in 28 states and Washington, D.C.
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Coverage limits
Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000
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Deductible
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Add-ons
Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss
Oftentimes, bundling discounts apply automatically. As you shop, make sure that the limits for liability and personal property coverage and your deductibles are the same.
From there, you can compare premiums, looking for the lowest price.
Bundling auto and renters insurance
Is bundling renters and auto insurance always cheaper?
While bundling renters and auto insurance often involves a discount, it’s not always cheaper.
Do I have to get renters insurance?
Renters insurance isn’t required by law, but it may be required as a condition of your lease. But, even if it’s not required by your landlord, having it could help protect you if your belongings are damaged, if you’re held liable for unintended damages to someone else, or if your rented home becomes uninhabitable due to damages.
What factors affect renters insurance rates?
The price you’ll pay for renters insurance can be influenced by things like your claims history, where you live, and the deductible amount you’ve chosen. In some states, your credit-based insurance score can also be a factor.
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.