Bundling home and auto insurance in New York
Every carrier's advertising says bundle and save. Often that's true; sometimes two carriers beat one. Here is what the discount actually is, when the bundle wins, when it doesn't, and how to find out for your own house and cars without taking anyone's word for it.
Bundling means buying your homeowners (or renters or condo) and auto policies from the same carrier, which most carriers reward with a multi-policy discount on each; the Insurance Information Institute puts it at 5 to 15 percent, and some carriers advertise more. It usually saves money, but not always: a carrier that is cheap on auto can be expensive on home, and a bundle discount on a high base premium can cost more than two separate policies at lower ones. The honest comparison prices both routes for the same coverage, which is what I do with the carriers I represent. Bundling also makes an umbrella policy easier, because one carrier holds both underlying policies.
What bundling actually is
A bundle is nothing more than two policies from the same carrier: your auto policy and your homeowners, condo or renters policy, sometimes a boat or motorcycle policy too. Each policy stays a separate contract with its own limits, deductible and renewal date. What changes is the price: the carrier applies a multi-policy discount to each one, and you deal with one company for both. The Insurance Information Institute puts the discount at 5 to 15 percent; carriers' own advertising sometimes claims more, applied to their own base rates.
When the bundle wins
- Both base rates are competitive for you. A newer house with a recent roof and drivers with clean records tend to price well everywhere, so the discount is pure saving.
- You want an umbrella. One carrier holding both underlying policies makes a $1 million umbrella a routine add-on. See umbrella insurance.
- You value one claims number. A tree through the garage roof onto the car is one call instead of two carriers arguing over which policy pays.
- The renters or condo policy is small. The auto discount alone often exceeds the renters premium, making the second policy effectively free.
When two carriers beat one
- An older home. Carriers' roof-age rules and home-condition appetite differ sharply; the carrier that loves your cars may surcharge or decline a 1950s house with a 20-year-old roof. See the roof and imagery guide.
- A driver the carrier prices badly. A teen, a recent accident or a lapse can move one carrier's auto quote by hundreds; if the home quote doesn't offset it, split them. See adding a teen driver.
- A specialty home. Flood-prone, high-value, a rental, a second home: often placed with a specialist carrier that doesn't write auto at all.
- Discount on a high base. Fifteen percent off $2,600 is still more than $2,000 elsewhere. Compare the net premium, not the discount.
How I compare it
- Send me both declarations pages. I copy the coverage exactly, so the comparison is like for like.
- I price the bundle at each carrier I represent that writes both lines, and the split at the carriers that are strongest on each line alone.
- You see three or four net yearly totals side by side, with the umbrella priced on top of each.
- If your current setup wins, I say so. If a change wins, I time it to your renewal dates so there is no gap and no short-rate cancellation penalty.
The coverage gap check is a useful first step: it finds the gaps in the home and auto coverage you have now, so the comparison prices the coverage you should have rather than the coverage you happen to have. Related: auto insurance in New York · homeowners insurance · renters insurance · why premiums rise without a claim.
- 12 ways to lower your homeowners insurance costs (Insurance Information Institute) — 5 to 15 percent off for two or more policies with the same insurer
- Auto insurance resource center (NY DFS)
- Homeowners insurance resource center (NY DFS)
Common questions
Short answers to what people ask before they call.
How much does bundling home and auto insurance save?
The Insurance Information Institute says companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them; some carriers advertise larger multi-policy discounts. The discount applies to each policy, so on a household paying $1,500 for auto and $1,800 for home, ten percent is about $330 a year. Whether that beats two separate carriers depends on each carrier's base rate for your house and your cars.
Is it always cheaper to bundle?
No. Carriers price home and auto from different data, and one that is competitive on your cars may be expensive on a 1960s house with an older roof, or the reverse. A ten percent discount on a high premium can cost more than no discount on a low one. The only way to know is to price both routes for identical coverage, which takes me about twenty minutes with your declarations pages.
Can I bundle renters or condo insurance with auto?
Yes. Renters and condo policies qualify for the multi-policy discount with most carriers, and a renters policy is inexpensive enough that the auto discount alone often pays for it. Landlord policies on a rental property sometimes qualify too; it varies by carrier.
Does bundling help with an umbrella policy?
It helps. Umbrella carriers require minimum liability limits on the policies underneath and many prefer, or require, that they hold at least the auto policy. With home and auto at one carrier, the umbrella is usually a simple addition; with them split, some umbrella carriers decline or charge more. See the umbrella page for the underlying limits.
What happens to the discount if I drop one policy?
The discount on the remaining policy ends at its next renewal, so the premium rises even though nothing about that policy changed. If you're thinking of moving one policy, re-quote both at the same time rather than one at a time.
Can I bundle if my home and auto are with different carriers now?
Yes, at either carrier's renewal or mid-term with a pro-rated refund on the policy you move. Time it so the new policies start the day the old ones end, with no gap; a lapse on auto in New York triggers DMV penalties and costs more than any discount.
Get an auto or home quote
Your current declarations page is all I need to compare like for like. If you're already well placed, I'll say so.