Case Study – Can bundling save you money on home insurance?

You’ve probably seen commercials from different insurance companies promising big-time savings if you bundle your home and auto insurance. But perhaps you’re skeptical. Bundling, which just means getting multiple lines of insurance from the same company (for example home and auto), can save you money on your insurance…but how does it work? And, well, why does it work? We’re going to illustrate how bundling can help you save money on your insurance by going through a case study.

CASE STUDY: Married Couple in Georgia

A married couple in Georgia was looking for home insurance for a new house and insurance for their two cars. We’ll call them Jim and Susan.

Here’s the details:

The home is about 1,900 square feet, and it’s a brick construction house. The replacement cost value is about $260,000. Jim and Susan have two cars – one sedan and one mini-van. Both vehicles are over ten years old.

They decided to get quotes just for their home, and then get a quote for both their home insurance and auto insurance. They know that it’s important to shop around and compare different insurance options to find out if it’s a better plan to get their home and auto from two separate companies (looking at the lowest rate for each line of coverage) or from the same company (and bundling the two coverages together.)

Here’s what happened.

  • The quote for just the home insurance came back at $2,240.
  • The quote for the home with the auto discount applied was $1,565.
  • The auto insurance quote is $2,636.

That’s saving $675 on home insurance!

Get a bundled homeowners insurance and auto insurance quote today.


Of course, that’s just the savings on the home insurance premium without the cost of the car insurance added on. But, if you think about it, Jim and Susan are going to be paying for car insurance no matter what. (So either you’re adding the cost of the car insurance on top of the discounted home insurance rate … or a not-discounted rate from another company.) They can save money on the total cost of their home and auto insurance if they were to get their home and auto insurance from the same company.

The benefits of bundling.

So, the savings are clearly one of the big reasons for Joe and Susan to consider bundling. Insurance companies tend to see people who get both home and auto insurance from them as being “better” risks because they’re financially established – they’ve become responsible for a home and a car, neither of which are insignificant feats. The insurance companies can offer the bundling discount (which is one of the common home insurance discounts) because of the lower level of risk associated with insuring that person or couple. And that’s how you can end up paying a lower home insurance premium when you bundle.

However, that’s not the only benefit that you might see from getting home insurance and car insurance from the same company.

First of all, when you get home insurance and auto insurance from the same company you’re only dealing with one insurance carrier. That means that you’ve got a single point of contact when it comes to handling your insurance needs. Rather than dealing with two separate companies, you’ll be able to have all of your customer service questions taken care of by one person – or department, at the very least. It’s convenient when you consider the fact that you’ll have bills to pay for your premium, renewals to think about, and so on. You’ll also be able to develop a stronger relationship with the agency or carrier.

And there’s another consideration, too – you might be able to get additional discounts if you purchase more lines of coverage from the carrier. For example, if you need to insure a motorcycle. Or if you’re interested in getting a personal umbrella policy. Or maybe you have a boat that you need to get insurance for before you hit the water. You might be able to get a better price for these additional lines of coverage by going through the company that you’ve already got home and auto insurance with. Just something to keep in mind.

insurancehub get insurance quote

So, that’s how Joe and Susan’s story illustrates the potential benefits of bundling. Of course, every person is different, and bundling isn’t the right fit for everyone. But a lot of the time it can help homeowners and drivers save quite a bit on their insurance premiums. It’s definitely worth thinking about and getting some quotes. You can compare the difference between paying for home and auto separately and paying for them as a bundle. Chances are you could see some savings.

Our team of insurance agents can help you get quotes so you can compare pricing and coverage options. We can help you find out if bundling is right for you, and we can go over your different options and quotes so you know you’re getting the coverage you need. And we also like to make insurance easy and as convenient for you as possible. Get started with your quotes by filling out our online form or giving us a call today.