The Pros and Cons of Bundling Auto and Renters Insurance

Should you bundle your car and renters policies?

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Insurance can be expensive, especially when you need multiple types of coverage. By the time you have a policy in place to protect your health, your car, and the personal property inside your rented home, the premiums can really add up. 

It makes financial sense to look for ways to save money on insurance. Since many insurance companies provide a discount for bundling policies—combining more than one type of insurance with the same company—it may be a good way to cut costs. But before you make that decision, consider these pros and cons. 

Key Takeaways

  • You may qualify for a multi-policy discount if you have both renters and auto insurance from the same company. 
  • If you want to simplify things by only working with one insurance company, you should consider bundling. 
  • Bundling policies isn’t the best move for everyone, especially if the savings don’t outweigh the other benefits you get from your current policies. 

What Is Bundling?

Bundling insurance means you have multiple policies in place with the same insurance company. For instance, if you already have a car insurance policy and then purchase renters insurance from the same company, you may be eligible for a bundle discount, also known as a multi-policy discount.


Renters and auto insurance aren’t the only combination that may offer bundle savings. Insurance companies typically provide this discount if you have at least two policies in place, including motorcycle, life, or umbrella insurance. If you have multiple insurance needs, check with your insurance company to see if bundling makes sense for you. 

Pros of Bundling Auto and Renters Insurance

Bundling offers many benefits, including potential savings. Let’s take a look at why you might consider bundling your renters and auto insurance.

Bundling Could Save You Money

Many insurers offer a discount when you combine your auto and renters insurance policies. The amount of money you could save depends on many factors, including: 

  • Your insurance company and/or underwriter
  • The amount of insurance coverage you need 
  • Your state 

Check with your insurance agent to see if you’re eligible for a bundle discount and how much you could save. 

Here’s a look at how much you may be able to save with five different insurers.

Insurance Company Bundling Discount for Renters & Auto
State Farm Up to 17%
USAA Up to 10%
Amica Up to 15%
The Hartford Up to 5% off car insurance; up to 20% off renters insurance
Progressive Up to 4%

Bundling Is Convenient

Another benefit of bundling your auto and renters insurance policies is the convenience factor. Dealing with only one insurance company means everything is streamlined. 

There’s only one set of login information to remember to manage all of your policies online. And, if there’s ever a problem, you know exactly who to call without having to remember which insurance company provides which policy. In a high-stress situation, like when you’re filing a claim, this convenience can offer peace of mind. 

Your Agent Gets To Know Your Insurance Needs

When your agent has access to all of your policies, they can more easily see any gaps in coverage. This bird’s eye view can make them better equipped to help you get the insurance you need to be fully protected. 

Cons of Bundling Auto and Renters Insurance

Even though bundling your auto and renters insurance has many benefits, it isn’t the right move for everyone. Here are a few of the downsides of bundling. 

The Savings Might Not Be Worth Switching Insurers

Renters insurance is generally pretty cheap, often around $12 a month for $30,000 worth of coverage. Since a renters policy is already fairly inexpensive, bundling it may not offer the same potential savings as a higher-priced homeowners policy might. These savings may not be worth the hassle of switching to a new insurer, especially if you like your current provider and policy terms. 


If you do decide to change insurers to bundle your policies, make sure you receive similar levels of coverage. Otherwise, you may find yourself underinsured. 

It Could Stop You From Shopping Around

By bundling your renters and car insurance together, you’re sticking with the same company. Because of the added convenience, you may not take the time to shop around regularly for different insurance options. This means you could be missing out on lower rates from another company.

Bundling Your Insurance May Be Time-Consuming 

Since your eligibility for bundling discounts depends on so many factors, you may not be able to get an instant quote that reflects these savings. You may need to speak with an agent and provide information before getting a quote for bundled insurance, which may take additional time. 

Does Bundling Make Sense for You?

Now that you’ve weighed some of the pros and cons about bundling your auto and renters insurance, you get to decide if bundling makes sense for you. To help you make the decision, compare quotes from different insurance companies for both stand-alone policies and bundled ones.


Make sure you’re comparing the same amounts of coverage when you request quotes. Read the fine print carefully, and select the same limits and deductibles with each company.

If you decide to bundle your insurance, don’t put your coverage on autopilot. The amount of coverage you need and the rates that companies offer change over time, so don’t set it and forget it. At least once a year, take time to review your insurance policies and consider your other options. 

Frequently Asked Questions (FAQs)

How much can I save by bundling auto and renters insurance?

The amount of money you save by bundling auto and renters insurance depends on many factors, including your coverage, deductible, location, and insurance company. Discounts advertised by major insurers suggest that consumers may save between 4% and 20% by bundling, but it’s important to collect and compare quotes for your own needs.

What’s the best insurance company to bundle with?

Most major insurance companies offer a discount when you bundle policies such as auto and renters insurance, as the table above shows. But the best insurance company for you to bundle with is the one that offers the best coverage for your needs, for the best price. Take the time to compare coverage, request quotes, and see what other discounts you qualify for before choosing your insurance policy.

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The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Progressive. "Bundling Home and Auto Insurance: Convenience at a Discount," see "How Much Will I Save by Bundling?"

  2. Amica. "Renters Insurance Discounts."

  3. The Hartford Insurance. "Bundle Home and Auto Insurance With Your AARP Membership," see "The Best Home and Auto Bundle To Fit Your Needs."

  4. USAA. "Bundle and Save."

  5. State Farm. "Save Up to $965 on Auto & Home Insurance," see "What If I Have an Auto Policy, But Need Another Product?"

  6. State Farm. "How Much Is Renters Insurance?"

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