Pros and Cons of Bundling Home & Auto Insurance


Two women sitting together in an office working on a laptop.
Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

Bundling insurance often helps save money, but not always. You have to shop around.

Bundling insurance simply means buying more than one policy from a single insurance company. Here’s a quick look at the pros and cons, as well as another way to save on insurance premiums.

What can be bundled

Two or more types of insurance can be eligible for a bundling discount. Home and auto insurance are often paired, but that’s not the only way to get a multi-policy discount. RV or boat coverage can be bundled with renters insurance or an umbrella policy. Or motorcycle and homeowners insurance can be bundled.

Bundling options will vary by insurer and the types of coverage they offer.

Pros of bundling insurance

The primary reason to bundle insurance is to save money. Getting coverage for multiple policies with the same insurer almost always garners a discount.

According to NerdWallet, multi-policy discounts average 18%. If your annual total expenditure for insurance is $5000, an 18% reduction means $900 in savings.

There’s also the convenience of dealing with just one insurer when you bundle insurance. You have a single company to deal with whether you’re making a payment, using online services or asking questions.

Cons of bundling insurance

Over time insurers tend to raise premiums, which diminishes the value of the discount initially offered. Insurers count on the fact that comparison shopping takes time and effort. It’s just easier for most people to renew their policies rather than unbundle them. Unless you comparison shop every year, you could end up paying more than you need to.

Another factor to consider is that some insurers start with a higher premium when offering a discount. The premium you end up with may not result in true savings.

Another way to save—group discounts

As a Consumers member, you can save money with group insurance discounts through Nulty Insurance. Discounts are available on both auto and homeowner’s insurance, with or without bundling. To see how much you can save call Bill Shearer at 269.488.0341 or visit the Nulty website.

Compare costs and coverages

The best way to ensure you’re getting the best insurance coverage at the best price is to comparison shop every year. Keep in mind that a lower insurance premium might reflect less coverage. Make sure you do apples-to-apples comparisons.

If you want to use an online insurance comparison website, first check out Consumer Report’s article on watching for privacy pitfalls.


Equal Housing Opportunity Logo with white background and black text and image. All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.

Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

Leave a Reply

Your email address will not be published. Required fields are marked *

Enter your email address to receive notifications of new posts by email.

Get awesome new content delivered straight to your inbox.