Should I bundle insurance? When keeping different companies pays off

Many insurance companies promote bundling policies, like home and auto, as a simple way to save. And sometimes it really is that simple. One provider, one bill, zero headaches.

So how do you know what’s right for you? 

What does it mean to bundle insurance?

When you bundle insurance, you’re buying two or more policies, like home and auto, from the same insurance company. It’s like ordering the combo meal instead of a la carte. In exchange for keeping your business in one place, the company typically offers you a multi‑policy insurance discount.

That discount can be meaningful, and bundling also comes with some added perks. But before jumping in and bundling your policies, it’s worth understanding the mechanics behind the offer.

Bundling isn't a one-size-fits-all setup and what works best for one person might not work for another. That’s why it helps to know what kinds of policies are commonly bundled together before diving in.

If you’re considering bundling, it helps to understand what combinations are most common. These pairings tend to offer the highest discounts and are the easiest to manage with one provider. Here's a quick look at the most popular policy bundles:

• Auto, home, renters, or condo insurance – This bundle combines your vehicle coverage with your place of residence, whether it’s a house, condo or apartment, and remains the most common and heavily marketed combination.
• Renters and auto insurance – This is a type of bundle that is popular with younger adults or apartment dwellers.
• Auto and motorcycle or RV insurance – This is an option that is often bundled for active travelers.

Why do insurance companies offer bundling discounts? Because it rewards your loyalty. The more policies you have with one company, the more they can recognize your commitment and pass along savings. This helps create a long-term relationship that benefits both you and the provider.

Is bundling insurance cheaper?

Bundling can be an appealing option since it often comes with upfront savings, which is why it’s so commonly recommended. However, it’s important to look beyond the initial discount. The true value comes from making sure the coverage fits your needs, claims are handled smoothly and future renewals remain competitive.

So how much do you really save?

On average, most people save between 10% and 25% when bundling home and auto insurance, though the exact percentage depends on the insurer and where you live. The savings can also vary by state and provider, with some offering smaller discounts or limiting which policy combinations are eligible. Beyond home and auto, many companies extend discounts for bundling renters and car or even life and auto insurance, giving policyholders more opportunities to cut costs.

Still, price is only part of the equation. The real question is: are you still getting the coverage you need at the level of service you expect?

What are the benefits to bundling insurance policies?

Bundling works really well for a lot of people, especially if you like keeping things simple and want to save some cash along the way. It’s the classic “one-stop shop” approach to coverage that gives many policyholders peace of mind. For busy households, the ease of combining policies in one place often outweighs the time it takes to hunt for separate deals. Bundling offers:

• Convenience – You get one bill, one contact, one login for everything.
• Discounted premiums – That multi-policy insurance discount can be significant.
• Streamlined claims process – Filing claims across policies can be smoother.
• Loyalty perks – Some companies reward bundled customers over time.

When you want to simplify your setup and reduce monthly costs, bundling can definitely deliver value. 

What are the drawbacks to bundling insurance?

As great as bundling sounds, it’s not always right for everyone. Sometimes you’re better off picking and choosing based on performance, not convenience. In certain cases, separating policies can give you more control over pricing and the freedom to choose providers that truly meet your needs. Here’s what to watch out for:

• Missed savings on individual policies – You might score a great auto deal elsewhere.
• Less flexibility – Coverage choices may be limited or one-size-fits-all.
• Harder to switch – Once everything’s in one place, shopping around feels more complicated.
• Drag-down effect – A bad claim experience in one area, like auto, can taint your view of the company as a whole.
• First-year teaser rates – Discounts may disappear after the initial term.

So if bundling isn’t always better, how do you know when to skip it?

Pros of using different insurance companies:

• Get the best rate on each individual policy
• Tailor coverage to your unique needs
• Keep flexibility across providers

Cons of using different insurance companies:

• Multiple bills, websites or contacts
• May miss out on bundle discounts
• Claims process could involve more coordination

So, should you use different insurers for home and auto? If you're willing to compare, the payoff can be better value and more control over your protection.

When should I not bundle insurance?

Bundling might be convenient, but there are real scenarios where it costs more or leaves you underinsured. In these cases, it's worth considering whether to unbundle insurance policies. Thinking through your unique situation can reveal whether the savings are real or just surface-level, and it may highlight coverage gaps you didn’t expect. 

You should avoid bundling when:

• You qualify for a better rate elsewhere – This is especially important if you're a high-risk driver or live in a high-value home.
• One provider underperforms in key areas – You need to be happy with the performance for all insurance types. A great auto company could have low claims satisfaction on home insurance.
• Your needs are highly specialized – If you have a vintage car or a vacation property, you’re likely to have different insurance needs than other homeowners and drivers.
• You want access to niche carriers or local agents – Smaller companies, or those who specialize in one type of coverage, may not offer bundles.
• You want the best service for each policy – The best service may mean choosing more than one insurance company.

This is when not to bundle insurance and when a little extra effort can pay off in a big way. The VIU by HUB Advisory team is here to help you make sense of your coverage needs and point you in the right direction, whether that means bundling your policies or keeping them separate for the best value.

So how do you decide? 

This isn’t just about finding the cheapest deal. It’s about the right combination of coverage, service and value for your life and circumstances. You’ll want to weigh your options carefully before making a decision. This checklist can help:

• Compare policies – Look at bundled policies vs. unbundled policies and look past the premium to compare the coverage.
• Check satisfaction ratings – This way you know how each company performs, especially for claims and support.
• Think about convenience – This helps you decide whether you want one portal or multiple points of contact.
• Evaluate long-term costs – This makes it easier to factor in rate stability and potential renewal increases.

No single setup works for everyone. The key is choosing what fits your life now and adapts with you later. The VIU by HUB Advisory team is here to guide you through that decision, helping you weigh the benefits and drawbacks of each approach so you can feel confident in your choice.

Frequently asked questions

How much do you save by bundling insurance?

Most people save when they bundle home and auto insurance. That range varies by insurance company and where you live, so it’s worth getting personalized quotes. Keep in mind that savings can also change over time, especially after the first policy renewal.

Is it better to use one insurance company or multiple?

It depends. One company can offer simplicity and discounts, but multiple may offer better coverage or pricing in some cases. The right choice depends on your priorities, such as convenience versus customization.

Can you bundle renters and auto insurance?

Yes, many companies offer bundle discounts for renters and auto insurance. It’s a popular option for apartment dwellers who drive and want to cut costs without skimping on protection. Depending on the provider, the savings can also include extra perks like roadside assistance or loyalty rewards.

There’s no universal right answer. It all depends on your needs, your budget and your comfort with comparison shopping.

Bundling can offer great savings and convenience. But separating policies might give you stronger protection, better pricing or more flexibility in the long run.

So take the time. Get the quotes. Ask the hard questions.

And when in doubt, get help from a pro who can lay out your options clearly.

Want help deciding? Speak with a VIU by HUB advisor to compare bundled vs separate insurance options today.