Photo: istockphoto.com

Combining home and auto insurance policies is a highly advertised concept because it could reduce the cost of these policies, which is always a positive. However, just like when looking for individual policies, it’s important to shop around with various insurance providers to compare both the policies and the rates to make sure it’s the right coverage at the right price. The best home and auto insurance bundles will contain the coverage the policyholder needs without breaking the bank. Working with the best auto and home insurance companies can go a long way in ensuring policyholders will receive a great rate on their insurance policies along with the confidence the company will deliver if it’s necessary to file a claim.

1. BEST OVERALL: Allstate
2. RUNNER-UP: State Farm
3. BEST FOR DISCOUNTS: American Family Insurance
4. BEST BUNDLING OPTIONS: Nationwide
5. BEST ONLINE SERVICES: Progressive
6. BEST FOR MILITARY MEMBERS: USAA

Photo: istockphoto.com

What to Consider When Choosing One of the Best Home and Auto Insurance Bundles

Shopping for one of the best auto and home insurance bundles means taking time to research not just the policies but also the insurance companies. There are numerous factors that should be evaluated, such as whether the company offers coverage where the policyholder lives, how easy it is to get a policy quote, and what the claims process entails.

Coverage Area

When researching insurance companies for the best homeowners insurance and auto insurance bundle, the first step is always checking the company’s coverage area. If the company doesn’t provide coverage where the prospective policyholder lives, it’s easy to cross it off the list and move on. Checking the company’s coverage area could be as simple as a prospective policyholder entering their ZIP code on the website. However, sometimes a phone call may be required to confirm coverage. Some insurance companies may cover portions of a state rather than the entire state. Also, some companies may offer coverage where the policyholder is located, but not necessarily home and auto bundles. Always ask to get a direct, clear answer before moving forward with research.

Quote Process

Shopping around for the best car and home insurance bundles should always include comparing at least three insurance quotes for policies with the same, or very similar, coverage. Many insurance companies offer quotes online when policyholders provide basic information such as where the home is located and the make and model of the car. Keep in mind these online quotes are estimates, and the exact quote may vary once the insurance company considers all the factors related to the policy in question. Even so, these could be a good indicator of the price range for coverage. Some companies may require consumers to talk with an agent to get a quote, which, for some people, could be uncomfortable, but remember these quotes could be more accurate than an online quote.

Claims Process

No one likes filing a claim with their homeowners or car insurance, but if they must, they want a seamless claims process with quick results. When shopping for the best home and auto insurance bundles, review the claims process to see what’s involved. Can the policyholder file online or through the company’s app? How quickly does the company respond to claims? Don’t be afraid to ask questions about the claims process to find out how easy or hard it may be with an insurance company. Also, read customer reviews to see what their experiences have been when filing a claim.

Policy Terms and Add-ons

When shopping for the best home and car insurance bundle, it’s important to confirm that each insurance company offers the coverage needed to protect both the house and the vehicle. For homes, this means dwelling coverage, personal property coverage, liability coverage, and living expenses coverage if the homeowners are displaced. For cars, this means comprehensive coverage, collision coverage, liability coverage, and personal injury protection coverage. For both types of insurance, look for companies that offer add-ons that could provide additional coverage to make sure all assets are protected. This could include sewer and backup coverage on a home or gap insurance for a vehicle, which pays off the car loan in the event the car is totaled and the car’s value is worth less than what’s owed on its auto loan. Review all types of coverage to make sure the policy has only what is needed.

Replacement Cost Coverage vs. Actual Cash Value Coverage

When reviewing the best home and auto insurance bundles, there may be provisions for replacement cost coverage and actual cash value coverage. It’s important to know the difference in these coverages as well as the rates for such coverage. Replacement cost coverage insures your property for what it would cost to repair or replace your damaged property without subtracting its depreciation. Actual cash value coverage is based on the depreciated value of a damaged item. Typically, replacement cost coverage costs more than actual cash value coverage. When shopping for home and auto bundles, have the insurance company provide quotes for policies with each type of coverage to see the difference in rates.

Discounts

Insurance companies boast a lot about the various discounts they offer, particularly when it comes to the best home and auto insurance bundle. In fact, most companies say customers can save money when they bundle their home and car policies. But there often are many more discounts available, too, so it’s important to know all the discounts the company offers. Many companies also offer other ways to save on rates, such as vanishing deductibles and accident forgiveness, so it’s important to know what these terms mean. For instance, with vanishing deductibles, for every year the policyholder does not file a claim, the insurance company will reduce the policy deductible by a certain percentage or dollar amount. Accident forgiveness allows drivers without accidents on their record to purchase this coverage so their rates don’t go up if they are in an accident where they are at fault. Both of these options could increase rates up front but save money if a claim is filed.

AM Best Rating

When researching the best home and auto insurance companies, it’s important to check the company’s AM Best rating. AM Best examines financial data, credit ratings, and other data to determine an insurance company’s creditworthiness. Companies are rated on a scale of A++ to D, with A++ being superior. It’s important to look for insurance companies with ratings of B+ to A++, as they are considered to have the better creditworthiness. This is an indication of the company’s financial strength or ability to pay the claims of its policyholders.

Our Top Picks

When researching companies for the best insurance bundles, we looked for companies that covered a large portion of consumers, offered good discounts on insurance bundles, and had high AM Best ratings.

Photo: allstate.com

Why It Made the Cut: Allstate offers nationwide coverage, the highest possible bundle discount by percentage, and a wealth of bundling options and policy add-ons.

With bundling available nationwide, Allstate offers consumers widespread coverage with no regional gaps. Allstate’s maximum 25 percent bundling discount is among the highest we found in our research. It’s important to note that not every customer will receive the 25 percent discount since it will depend on the policy terms and conditions, but customers eligible for the maximum discount can enjoy a noticeable discount for bundling their policies. Allstate’s AM Best rating of A+ shows that the company’s financial status is strong, and customers should be able to get legitimate claims paid out with minimal hassle.

Although Allstate’s rates may be generally higher than others in this space, the company offers many bundling options beyond just home and auto. Consumers also have the option to bundle boat, motorcycle, and umbrella coverage. Plus, there are options to add on term life, snowmobile, and RV insurance, among other additional policies.

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online, phone, agent
• Claims process: Online, app, phone, agent
• Additional policies: Renters, motorcycle, off-road vehicle, condo, term life, RV, boat, snowmobile
• Bundling discount: Up to 25 percent
• AM Best rating: A+

Pros

• Bundles available in all 50 states and Washington, D.C.
• Relatively high and very competitive 25 percent bundling discount
• Extensive bundling options available beyond home and auto insurance

Cons

• Total cost may be higher than that of other providers

Photo: statefarm.com

Why It Made the Cut: State Farm offers nationwide coverage, superior financial strength, and helpful virtual agent consultations.

State Farm offers bundles for customers across the entire country, offering a maximum discount of 17 percent on bundled home and auto insurance, though there are no further bundling discounts for insuring more than two vehicles. With its A++ AM Best rating, the company continually demonstrates strong financial stability and long-term ability to continue providing insurance and paying out claims.

State Farm’s quote process is not always as convenient as others in this space, with customers needing to speak with an agent to get a quote for a bundle. However, customers can still get online quotes for separate home and auto policies to get an idea of the pre-discount cost, and speaking with an agent generally results in a more tailored and realistic quote rather than an estimate. Additionally, State Farm offers the Good Neighbor Connect program, which connects customers with agents over the computer via video conferencing. This allows customers to speak face-to-face with their agent about policies, claims, and more, all from the comfort of their own home.

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Phone, agent
• Claims process: Online, app, phone, agent
• Additional policies: Renters, motorcycle, off-road vehicle, condo, term life, RV, boat, umbrella, farm and ranch
• Bundling discount: Up to 17 percent
• AM Best rating: A++

Pros

• Bundles available in all 50 states and Washington, D.C.
• A++ AM Best rating
• Convenient virtual agent support via online video meetings

Cons

• Home and auto bundle quotes cannot be completed online
• No discounts available for bundling more than two auto policies

Photo: amfam.com

Why It Made the Cut: American Family Insurance offers various ways for customers to save on home and auto insurance, including generational and customer loyalty discounts as well as a home and auto bundle discount.

To help customers save on their home and auto insurance, American Family Insurance provides a lot of options for reducing their insurance rates. AmFam only offers bundling for home and auto insurance, but customers can still add additional policies separately. Although American Family Insurance is available in just 19 states, it offers plenty of discount options for customers who live in the coverage area. For instance, the company offers a discount up to 23 percent when home and auto insurance is bundled together. Also, if a customer’s parents have an active home or auto policy with the company, the customer could receive a generational discount for family loyalty. Diminishing deductibles offer another way to save, helping customers reduce the amount they will need to pay if the time comes to file a claim on their home or auto insurance.

To help customers who have questions, need to file a claim, or are shopping for policies, AmFam agents can be reached online through the site’s virtual chat assistant, giving customers more options to get the support they need.

Specs

• Coverage area: 19 states
• Quote process: Online, phone, agent
• Claims process: Online, app, phone, agent
• Additional policies: Renters, motorcycle, ATV, condo, term life, RV, umbrella, snowmobile, farm and ranch
• Bundling discount: Up to 23 percent
• AM Best rating: A

Pros

• Unique loyalty discounts available
• Diminishing deductible for both homeowners and auto insurance
• Convenient virtual live chat support staffed by expert and responsive agents

Cons

• Bundles only available in 19 states
• Insurance bundles are limited to home and auto insurance

Photo: nationwide.com

Why It Made the Cut: Nationwide offers many different types of policies that can be bundled along with home and auto insurance, which could lead to a discount of up to 20 percent.

In addition to bundling home and auto insurance, Nationwide allows customers to bundle other policies such as term life, boat, motorcycle, ATV, RV, and pet insurance to maximize the bundling discount. Customers can also bundle more than one car for additional savings. Information about the availability of bundling isn’t immediately available online, so customers will need to contact an agent for a quote in order to determine whether they are eligible.

Nationwide’s smart home program discount is a standout as well, although customers will need to install a Notion Smart Home Monitoring System to qualify. Nationwide also offers a free annual review of insurance policies to check for coverage gaps and additional savings opportunities through its On Your Side program, which can help customers continue to save each year.

Specs

• Coverage area: 43 states and Washington, D.C.
• Quote process: Online, phone, agent
• Claims process: Online, app, phone, agent
• Additional policies: Renters, motorcycle, ATV, condo, term life, RV, boat, umbrella, classic car, watercraft, flood, pet
• Bundling discount: Up to 20 percent
• AM Best rating: A+

Pros

• Extensive bundling options available beyond home and auto insurance
• Exclusive discounts available through Nationwide’s smart home incentive program
• Free annual review of insurance policies to check for coverage gaps and missed discounts

Cons

• Conflicting information around home and auto insurance bundle availability

Photo: progressive.com

Why It Made the Cut: Progressive offers a customizable online quote tool as well as extensive educational resources and online tools such as insurance calculators, easing the pain points of shopping for insurance.

When shopping for home and auto insurance with Progressive, customers can use the customizable online quote tool, which allows them to adjust premiums to see how different rates impact coverage and total cost. Progressive also allows customers to add on policies covering a range of vehicle types, including golf carts and segways. Customers can add these policies and endorsements to the quote for a more accurate rate. In addition, the website is full of educational resources and online tools including pages dedicated to answering questions about coverage, insurance costs, and how different policies work. Customers can also use insurance calculators to figure out how much coverage they need. In order to determine eligibility for an insurance bundle, customers will need to get input their ZIP code to get a quote since bundles may not be available in all locations.

Progressive also offers a mobile app where customers can submit and track auto insurance claims. However, home insurance claims will need to be made by phone or online since the app doesn’t support homeowners insurance claims at this time. But for auto claims, the app offers an easy way to file, as well as track, claims.

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online, phone, agent
• Claims process: Online, phone, app
• Additional policies: Renters, motorcycle, ATV, condo, term life, RV, boat, classic car, watercraft, golf carts, segways, flood, pet
• Bundling discount: 20 percent or more
• AM Best rating: A+

Pros

• Easily customizable online quotes
• Various add-on policies covering a wide range of vehicle types
• Extensive online library of informative insurance resources and tools

Cons

• Mobile app does not support homeowners insurance claims
• Home and auto bundles may not be available in all ZIP codes

Photo: usaa.com

Why It Made the Cut: USAA may offer the lowest total cost on home and auto bundled insurance for eligible service members, which includes active and former military members and their families.

At first glance, USAA may not seem like it offers great savings because the maximum discount for bundling home and auto is 10 percent. However, USAA often has some of the lowest rates for home and car insurance, and the bundling discount could further reduce those rates. The company’s A++ rating from AM Best can provide peace of mind to consumers that the insurance company will likely continue operating for the foreseeable future and have the capital to adequately insure their possessions and assets. Additionally, USAA offers free identity theft coverage with many of its homeowners insurance policies.

In order to determine whether they are eligible for coverage, customers will need to contact USAA for a quote. While coverage is available in all states, customers living in certain zip codes may not be eligible for coverage. And while USAA insurance policies are only available for members of the military, veterans, and their eligible family members, USAA members can enjoy additional perks such as discounts on car rental, travel, entertainment, and home security.

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online, phone
• Claims process: Online, phone, app
• Additional policies: Renters, motorcycle, ATV, condo, term life, RV, boat, watercraft, flood, aviation
• Bundling discount: Up to 10 percent
• AM Best rating: A++

Pros

• Relatively low rates for bundling
• Exclusive perks available to USAA members
• Identity theft coverage often included with homeowners insurance policies
• A++ AM Best rating

Cons

• USAA membership limited to service members and their families
• No option to consult agents in person
• Homeowners insurance coverage may not be available in all ZIP codes

Our Verdict

We chose Allstate as our Best Overall pick because it offers the highest possible bundle discount by percentage, plus coverage is open to customers across the country. State Farm was our Runner-Up pick because it has an outstanding AM Best rating and virtual agent support.

How We Chose the Best Home and Auto Insurance Bundles

To choose the best providers for the best bundle insurance, we looked at potential bundling discounts, coverage area, financial strength, quote and claim processes, customer support options, policy add-ons, and other discounts that may be available to customers. More specifically, we looked for companies with discounts of 10 percent or more as well as those with an AM Best rating of A or higher. We also searched for companies that had the widest coverage area so the most consumers could be served. Quote and claim processes that are user-friendly also were important so customers could save time handling these processes.

Before You Choose One of the Best Home and Auto Insurance Bundles

While the companies featured here are good options for the best auto home insurance bundle, that’s not to say that every company listed is the right choice for all consumers. It’s important to independently research companies to ensure they offer the right coverage at the right price. It’s also important to confirm that the company provides coverage where the customer lives. When shopping for insurance, potential policyholders can also review customer reviews and ask friends and family about their experiences with their insurance companies to see how well the company treats its customers.

Cost of Opting for One of the Best Home and Auto Insurance Bundles

The cost of homeowners insurance and auto insurance bundles will vary based on a number of factors including where the customer lives, the type and amount of coverage needed, and the discounts available to the customer. Therefore, it’s always important to shop around and get quotes from at least three different insurance companies. Most consumers will find a wide range of rates even from the best home and auto insurance companies. When getting quotes, it’s important to share the same information with each company and ask for the same coverage so the rate comparison is accurate. Also, because rates can fluctuate often, customers are advised to request quotes from multiple companies on the same day.

The Advantages of Opting for One of the Best Home and Auto Insurance Bundles

Purchasing one of the best home and auto insurance bundles can come with many benefits including significant discounts, nationwide coverage, and seamless quote and claims processes. Many insurance companies also offer good options for bundling not just home and auto insurance but also other types, such as term life, boat, and RV insurance. They may also offer bundling discounts on the best renters insurance policies for customers who are not homeowners. In addition, these companies offer various avenues of customer support that can prove invaluable when shopping for the best home and auto insurance bundles.

• Relatively high and competitive bundling discounts
• Coverage available throughout the country
• Companies have high AM Best ratings ensuring financial ability to pay claims

FAQs

It’s always important to research insurance companies when shopping for the best home and auto insurance bundles. This is the best way for customers to find the right coverage at the best rates. Here are some of the most common questions customers have when shopping for home and auto insurance bundles.

Q. What is homeowners insurance?

Homeowners insurance is a type of coverage that protects your home and personal property if it is damaged or destroyed by a covered peril.

Q. What does homeowners insurance cover?

Homeowners insurance typically covers the structure of the home, the homeowner’s personal property, and liability if someone is injured. It can also provide coverage for cost-of-living expenses if the homeowner is required to move out temporarily while repairs are being made to their home after major damage from a covered peril.

Q. Does homeowners insurance cover damage from flooding?

No, homeowners insurance doesn’t cover flood damage. A separate flood insurance policy would be required to cover damage from flooding. However, homeowners insurance may cover water damage if it is sudden and accidental. Check with your agent to see exactly what is covered by your policy. You can also buy coverage from one of the best home warranty companies to help pay for damage caused by a broken dishwasher or leaky pipe.

Q. Does homeowners insurance cover damage from fire?

Homeowners insurance typically covers damage from fire provided it’s not intentionally set by the homeowner.

Q. Does homeowners insurance cover earthquake damage?

Most homeowners insurance doesn’t cover earthquake damage; a separate policy or add-on would be required to protect the home from earthquake damage.

Q. Does homeowners insurance cover storm damage?

Yes, homeowners insurance typically covers damage from thunderstorms, heavy snow, wind, and tornadoes.

Q. Does homeowners insurance cover mold?

Unless the mold occurs as the result of a covered peril, homeowners insurance usually does not cover mold.

Q. What does auto insurance typically cover?

Auto insurance typically provides comprehensive coverage for collisions, vehicle theft, broken windows, liability, uninsured and underinsured motorists, personal injury, and medical payments.

Q. Will home and auto insurance bundles always save customers money?

There are many factors that influence insurance rates, so it is possible home and auto insurance bundles may not always save customers money. That’s why it’s important to get multiple quotes and to ask specifically about bundling discounts when researching the best home and auto insurance bundles for you.