Multi-Policy Car Insurance Discount: How to Qualify, Potential Savings, and More
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Written byMandy Sleight
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Edited byNick Versaw
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Many insurers offer a discount when you bundle your car insurance with another insurance policy, like homeowners, renters, or life insurance. Specific savings vary by insurer, but you can typically save up to 25%, or around $1,000 per year, on your auto insurance policy.
State Farm, American Family, and Progressive are just a few insurance companies that offer a multi-policy discount. Keep reading to find out how much you can save, how and where to get the discount, and other ways to get cheaper car insurance rates.
How Much You Can Save With a Multi-Policy Discount
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Your savings with a multi-policy discount will vary by your state, insurance company, and the type of policy you’re bundling with your car insurance. For example, State Farm advertises savings of up to $1,273 annually when you bundle auto and homeowners insurance. With a renters insurance bundle, the company states you can save up to $704 per year on your auto policy.
State Farm’s discount amount is the largest we found. But not all insurers advertise how much you can save, and some may offer a larger discount with the more insurance policies you buy.
The best way to determine your potential savings is by calling your insurance company or licensed agent directly.
How to Get a Multi-Policy Discount
It’s easy to get a bundling discount. Simply buy more than one insurance policy from the same company. You usually have several types of insurance to choose from.
The most common insurance bundles include condo, home, or renters insurance alongside an auto policy, but other combinations may include:
Life insurance
Boat insurance
Umbrella insurance
Mobile home insurance
Motorcycle insurance
Pet insurance
Flood insurance
Some insurers even offer a multi-policy discount if you don’t have a vehicle. Nationwide and Allstate, for instance, offer savings if you combine motorcycle and renters insurance policies.
The discount is typically automatic when shopping for both policies at the same time. But if you’re adding a new policy to your account, you might have to contact your insurance agent or customer service and ask them to add the discount.
Where to Get a Multi-Policy Discount
A multi-policy discount is common and available from most insurance companies that offer more than one type of insurance. Some insurers advertise savings in dollars, while others advertise in percentages.
The table below shows different companies and their advertised discount amounts, based on our research.
Company ▲▼ | Advertised Discount Amount ▲▼ |
|---|---|
| State Farm | Up to $1,273 per year |
| Liberty Mutual | More than $950 per year |
| Allstate | Up to 25% |
| American Family | Up to 23% |
| Nationwide | Up to 20% |
| Erie | At least 15% |
| AAA | Up to 12.7% |
| Farmers | Up to 10% |
| USAA | Up to 10% |
| Progressive | Average of 7% |
| GEICO | Varies |
| Travelers | Varies |
| Mercury Insurance | Varies |
As you can see, savings can vary significantly from company to company. The best way to find the most affordable car insurance and get the largest bundling discount is to shop around and do a coverage and cost comparison. Consider starting with the companies offering the largest multi-policy discount.
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The Best Multi-Policy Discounts in 2024
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If saving money is your top priority, a multi-policy discount is usually the largest single discount available from an insurance company. Buying all your insurance policies from the same company can save you some serious money, streamline policy management, and make paying your premium easier, with all of your policies on one bill.
We found the following insurers advertise the largest savings opportunities:
State Farm
Advertised savings: Up to $1,273 per year
Average auto insurance premium: $85 per month
Compare.com Rating: 4.90 out of 5
If you need a home policy, combining it with car insurance from State Farm could save you more than $1,000 per year when you bundle them together. State Farm has multiple bundle options, too, including auto and renters, life, and condo insurance.
Liberty Mutual
Advertised savings: Over $950 per year
Average auto insurance premium: $146 per month
Compare.com Rating: 4.62 out of 5
Liberty Mutual advertises savings of more than $950 annually when you bundle auto and home insurance policies. You can bundle almost any Liberty Mutual policy — including boat and RV insurance — with car insurance, though the savings may not be as high. If you buy your car insurance policy online, you can also save up to 12%.
Allstate
Advertised savings: Up to 25%
Average auto insurance premium: $101 per month
Compare.com Rating: 4.93 out of 5
Allstate offers up to 25% savings on a home and car insurance policy bundle. You can also get additional discounts for buying your policies online, signing up before your policy effective date, and setting up an automatic payment plan or paying in full. You’ll even get instant access to your policies to verify or change coverages, view documents, and make payments.
How to Maximize Your Multi-Policy Discount Savings
Getting a multi-policy discount can open the door to substantial savings. Still, you can save even more with a few simple tricks. Use these tips to help you meet your coverage needs at the most affordable price:
Consider your deductibles: If you need comprehensive and collision coverage for your vehicle, a higher deductible will lower your premium. The same goes for your home insurance. Just make sure you can afford the extra expense if you need to file a claim.
Review your policies regularly: Insurance needs can change, and so can your premiums. When your policies come up for renewal, review your coverages, limits, and deductibles to see if they’re still meeting your needs and budget. If not, use a comparison site to compare quotes faster and easier to see if it’s worth changing companies.
Shop around: Comparing car insurance quotes and potential savings from different companies is the easiest way to determine which insurer is the best option for your unique needs.
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Other Common Car Insurance Discounts
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One of the great things about car insurance discounts is how you can stack several of them together to increase your savings. Some commonly available discounts you might also be eligible for include:
Multi-car: Insure at least two vehicles with the same insurer to get a multi-car discount.
Claims-free: Maintain a clean driving record by avoiding tickets and accidents to be eligible for a claims-free discount.
New-car: If you’re in the market for a newer car, ask your agent how to qualify for a new-car discount before you start shopping.
Safety features: The more safety features your vehicle has, the more you could save on your car insurance policy with a safety features discount.
Loyalty: Many insurers offer a loyalty discount if you renew your policy. You might also get a discount for having continuous coverage, even if you’re switching from another company.
Multi-Policy Discount FAQs
We answered the most common questions about the home and auto insurance bundle to help you decide if it’s right for you.
What is a multi-policy discount?
A multi-policy discount is a discount many insurers offer when you buy at least two policies from it. The most common insurance bundles are car and home insurance, but you can also save if you bundle your auto or motorcycle insurance with condo or renters insurance, depending on the company.
How much of a multi-policy discount does Progressive give?
Progressive offers an average savings of 7% if you bundle your auto and home insurance, according to our research. The savings are around 5% if you bundle car insurance with renters or condo insurance.
What does “multi-line discount” mean?
A multi-line discount is another name for a multi-policy discount or bundling discount. Insurance agents often call insurance products “lines,” so when you insure more than one policy, or line, together, you can get a multi-line discount.
What’s the maximum multi-policy discount percentage?
Allstate offers the highest multi-line discount percentage — up to 25% if you bundle home and auto insurance, according to our research. But savings will vary by the types of insurance policies you bundle together, the insurance company you choose, and the state you live in.
How do you get a multi-policy discount?
You can get a multi-policy discount by insuring at least two policies with the same insurance company. Though some companies only offer discounts if you insure your car and home, renters, or condo with the same insurer, others offer a discount toward any two policies the company provides.
Sources:
Insurance Information Institute, “Triple-I: Six Steps to Take When Renewing Auto, Home Insurance,” accessed October 16, 2024.
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Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.