Glossary
Bundling
Buying two or more insurance policies, such as auto and homeowners, from the same company, usually in exchange for a discount on each.
Also called: bundle, home and auto bundle, multi-policy bundle
Bundling means buying more than one type of insurance from the same insurer or insurance group, most often auto with homeowners, renters or condo coverage, and sometimes adding life, motorcycle, boat or an umbrella policy. Insurers reward it with a multi-policy discount because customers who bundle tend to stay longer and cost less to serve.
The discount usually applies to each policy. Suppose your auto policy costs $1,600 a year and your homeowners policy $1,400, and a hypothetical 10% bundle discount applies to both: you save $300 a year. Bundling also simplifies billing and puts everything with one company or agent, and some insurers apply a single deductible when one event, such as a storm, damages both your car and your home.
It does not always save money. A company with a generous bundle discount can still cost more overall than buying auto from one insurer and home from another, so get quotes both ways and compare the totals. Bundling also ties your policies together: a rate increase or nonrenewal on one can push you to move both. For several cars in one household, see the multi-car discount, which is a separate discount, and when bundling does not save money.
Last reviewed October 4, 2026