WalletHub, Financial Company
@WalletHub
To get a multi-policy discount on insurance, buy two or more types of insurance policies, such as car and home insurance, from the same insurance company. In return for the added business, insurance companies will then apply a multi-policy discount ranging from 5% to 30%. Some insurance carriers take one percentage off a person’s entire bill, while others apply separate discount amounts to each policy or a discount to just one policy. Insurers incentivize so-called “bundling” because it increases customer loyalty and is less expensive than finding a new customer.
Insurance companies treat bundling differently when it comes to the types of policies that are eligible, too, with some providing discounts only for dwelling and auto insurance, while others include life insurance and more. It’s also important to note that multi-policy discounts are different than multi-vehicle discounts, which involve more than one car or, sometimes, the combination of a car and an ATV, boat, RV or motorcycle.
Multi-Policy Discounts by Insurer
Insurance Company |
Possible Car Insurance Bundles |
Multi-Policy Discount Amount |
Car insurance + homeowners, renters, condo, or life insurance |
Up to 17% |
|
Car insurance + homeowners, mobile home, or renters insurance |
Undisclosed |
|
Car insurance + homeowners or renters insurance |
12% on average |
|
Car insurance + homeowners, condo, or life insurance |
Up to 10% off auto and 25% off home |
|
Car insurance + homeowners or renters insurance |
Up to 10% |
|
Car insurance + homeowners, renters, or condo insurance |
Undisclosed |
|
Car insurance + homeowners, renters, life, or umbrella insurance |
Undisclosed |
|
Car insurance + homeowners, renters, or home and life insurance |
Undisclosed |
|
Car insurance + homeowners, renters, or life insurance |
Average of 29% on car and 20% on home insurance |
|
Car insurance + homeowners, renters, umbrella, or valuable items insurance |
Up to 10% on car insurance |
Advantages of Bundling Multiple Insurance Policies
Besides the lower cost, bundling multiple policies with the same company is more convenient, saving you time and effort. Bundling could even decrease your expenses if you file a claim, since some insurers will only charge you one deductible if, say, your car and your house are both damaged by the same event.
In addition, since having multiple policies increases your value to the insurance company, bundling could be a smart choice if you’re struggling to find a company willing to insure a high-risk home, for example. Customers with multiple policies are also less likely to be dropped by insurance companies after filing claims than customers with only one policy.
On the other hand, bundling can sometimes be more expensive than getting separate policies, even with the multi-policy discount added. It all depends on personal circumstances and needs.
Possible Exceptions: When a Multi-Policy Discount Won’t Save You Money
- If you have a high-end car or collector car, the traditional company you use for home, renters, or life insurance might charge you much more for your car insurance than a specialty company would, even with a multi-policy discount.
- If your car insurance is standard but you need specialty insurance on your house, condo, boat, or RV, it could be less expensive to use two separate companies.
- It isn’t worth bundling if the bundled policies provide less coverage than you need or want.
- Life insurance policies can be difficult to change, so it might not be easy, or even possible, to bundle your life and car insurance.
If you’re looking for multiple types of insurance at the same time, be sure to compare quotes that include the multi-policy discount alongside quotes for each policy separately. Then, you can balance price against convenience to decide if a multi-policy discount is worth the savings.
People also ask
Did we answer your question?