Best Home and Auto Insurance Bundles of 2021

Car insurance is a requirement by law in most states, and home insurance can be required by mortgage lenders or homeowners’ associations – but there are other reasons why you might want to bundle both types of coverage. For home and vehicle owners, bundling these two types of insurance by purchasing both policies from a single insurer can have potential benefits such as discounted prices and streamlined recordkeeping.

However, while a bundle may look like a discount up front, you’ll want to take a deeper dive into the fine print to determine exactly what is covered and make sure both auto and home policies work for your personal needs.

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Best Home and Auto Insurance Bundles of 2021

USAA  »

USAA

Caters to Military Families

AM best rating
A++
Online Tools
Online Estimate
Bundling Discount
Up to 10%

Pros:

  • Home insurance coverage includes identity theft protection

  • Replacement cost coverage is standard

Cons:

  • Only available to the military, veterans, and immediate family members

  • Fewer homeowners insurance options than other companies in our rating

USAA is No. 1 in our rating of the Best Home and Auto Insurance Bundles of 2021 with a score of 4.4 out of 5 points.

USAA provides several options for its car insurance coverage such as rental reimbursement, accident forgiveness, complimentary roadside assistance, and car replacement assistance.

As for homeowners insurance, USAA includes identity theft protection, which many competitors offer only as an add-on. On the downside, USAA doesn’t provide as many policy options as other companies in our rating.

USAA gives discounts for alarm systems, multiple policies, and claim-free accounts. There are further available auto discounts for clean driving records, families, loyalty, vehicles in storage, low mileage, good students, safe drivers, and new vehicles.

USAA is only available to those who are members of the military, whether active or retired, and their eligible family members.

Allstate  »

Allstate

Offers Extensive Coverage Options

AM best rating
A+
Online Tools
Online Estimate
Bundling Discount
Up to 25%

Pros:

  • Offers many additional optional coverages

  • Online estimates available

Cons:

  • One of the most expensive companies in our rating

Allstate is No. 2 in our rating of the Best Home and Auto Insurance Bundles of 2021 with an overall score of 4 out of 5 points. Insurance quotes are available on the Allstate website.

Car insurance coverage options from Allstate include rental reimbursement, personal umbrella, roadside coverage, and custom equipment coverages.

Allstate offers a variety of optional home insurance coverage for things like valuable possessions, flood, identity protection, electronic data recovery, home-sharing, green improvement reimbursement, water backup, and sports equipment.

On the downside, Allstate has some of the most expensive homeowners insurance premiums in our rating.

However, there are ways to save at Allstate, including discounts for being claim-free, safe driving, paying in full, being a responsible payer or smart student, signing up for automatic payments, or having an anti-theft device or anti-lock brakes.

State Farm  »

State Farm

Adjusts Coverage to Inflation

AM best rating
A++
Online Tools
Online Estimate
Bundling Discount
Up to $965

Pros:

  • Numerous home insurance coverages and add-ons are available

  • Homeowners insurance policies adjust to inflation

Cons:

  • Limited homeowners insurance discounts available compared to other companies in our rating

State Farm takes third place in our rating of the Best Home and Auto Insurance Bundles of 2021 with 3.9 out of 5 points overall in this category.

On the car insurance side, State Farm offers additional coverage options for rental cars, medical payments, emergency road service, and rideshare drivers.

As for home insurance coverage, State Farm provides the option to include identity theft protection. Water backup coverage is also optional, which some competitors in our rating don’t offer. State Farm updates your coverage annually to keep pace with inflation.

While State Farm doesn’t offer a lot of discounts on its homeowners policies compared to other companies in our rating, its car insurance discounts include vehicle safety, airbags, anti-theft systems, good student, accident-free, and defensive driver training.

People interested in a policy can obtain a quote or estimate online, and there is a convenient mobile app.

American Family  »

American Family
AM best rating
A
Online Tools
Agent only
Bundling Discount
Up to 29% on Auto and Up to 20% on Home

Pros:

  • Offers optional accidental death and dismemberment auto coverage

  • Offers credit theft protection and credit monitoring

Cons:

  • Can’t purchase a policy without speaking to an agent

American Family earns the No. 4 position in our rating of the Best Home and Auto Insurance Bundles of 2021, with 3.8 out of 5 overall points.

American Family doesn’t offer online quotes and estimates. While you can start a quote online you must contact an agent to complete it. You also must contact an agent to purchase a homeowners insurance policy.

However, American Family allows policyholders to add coverage for identity theft protection and water backups. For auto insurance, American Family offers additional coverage for emergency road service, rental reimbursement, and accidental death and dismemberment.

American Family offers plenty of home insurance discounts, including for alarm systems, renovated homes, home purchasing, loyalty, generational, age of home, and savvy habits for online payments. There are also car insurance discounts for young volunteers, low mileage, good students, auto safety equipment, going paperless, and good drivers.

Nationwide  »

Nationwide
AM best rating
A+
Online Tools
Online Estimate
Bundling Discount
Up to 20%

Pros:

  • One of the least expensive homeowners insurance companies in our rating

  • Many optional coverage add-ons

Cons:

  • Not available in as many states as other companies in our rating

Nationwide ties for the No. 5 spot in our rating of the Best Home and Auto Insurance Bundles of 2021, earning 3.7 out of 5 possible points in a tie with Farmers Insurance.

For car insurance, Nationwide offers auto options roadside assistance, vanishing deductible, total loss deductible waiver, and accident forgiveness.

In terms of home insurance coverage, water backup, replacement cost, and identity theft protection coverage options are available with Nationwide’s policies.

Nationwide homeowners policies offer discounts for having protective devices, a new home, or being claim-free. You can also earn discounts with Nationwide for having anti-theft devices installed in your car, or for being a safe driver, defensive driver, accident-free, or a good student.

While it does offer coverage in the vast majority of states, it doesn’t offer coverage in as many states as other companies in our rating, like USAA.

Pros:

  • Convenient tiered homeowners insurance policies

  • Offers a rideshare coverage option on its auto insurance policies

Cons:

  • Water backup is not available

Farmers is fifth, tied with Nationwide, in our Best Home and Auto Insurance Bundles of 2021 rating. Farmers has a score of 3.7 out of 5 points.

Additional types of car insurance coverage Farmers offers include new car replacement, ridesharing, spare parts, windshield and safety glass, towing and roadside assistance, and umbrella coverage.

Farmers’ tiered homeowners insurance policies increase standard coverage limits and features as you go higher up in tiers. For example, its Premier tier can include Guaranteed Replacement Cost coverage if your home meets certain conditions.

There are many home insurance discounts with Farmers, including for multiple policies, loyalty, protective devices, claim-free accounts, and new home credit. Car insurance discounts from Farmers can also include anti-theft devices, good student, and safe drivers.

Progressive  »

Progressive
AM best rating
A+
Online Tools
Online Estimate
Bundling Discount
Up to 4% on Auto

Pros:

  • Wide range of policies and prices available

Cons:

  • May not administer your policy

Progressive is No. 7 in our Best Home and Auto Insurance Bundles of 2021.

On the car insurance side, Progressive offers additional auto coverages such as roadside assistance, rental car reimbursement, rideshare, and custom parts and equipment value. Because Progressive works with other companies who will administer your policy it’s able to offer a wide range of policies and coverage options.

Progressive has discounts for teen drivers, good students, safe drivers, and going paperless. Progressive also offers discounts for homeowners insurance, including a new home credit and a discount for having protective devices.

It is important to note that policies purchased through Progressive will be with insurers both affiliated and unaffiliated with Progressive, and the individual insurer will be responsible for a policyholder’s claims.

The right home and car insurance bundle for you will include all of the required insurance for your state and assets. It is important for both the homeowners policy and auto policy to cover everything required by your state and your lender. They should also provide enough coverage to meet your individual needs. Below we will explore how to find the best individual homeowners and auto policies for you.

When shopping for homeowners insurance, coverage options and limits, as well as price point, are all key factors. Almost all of the insurers in our ratings include coverage for the main dwelling, loss of use, personal property, personal liability, and guest medical. But, additional coverage types can vary widely in terms of availability.

Some insurance providers only offer certain coverages as an add-on or not at all. These options may include coverage for identity theft, valuable possessions, flooding, earthquakes, green improvement reimbursements, as well as extended coverage limits for dwelling and personal property replacement.

Many insurers in our ratings offer a mobile app for convenience. However, only some offer online estimate tools, while others require agents in order to sign up. When doing your research verify that you can reach the insurance provider in your preferred manner, whether online or through an agent.

Homeowners may also want to review discounts as well, which in addition to multipolicy bundling can include things like military affiliation, alarm systems, going paperless, staying loyal, being claim-free, and paying the premium in full at the start of the policy term.

All of the insurers in our rating earned an AM Best rating of A, A+, or A++. This financial strength rating is an indication of an insurer’s ability to meet its ongoing contractual obligations and insurance policies.

How to Find the Best Car Insurance Company For You

Car insurance is intended to financially protect motorists in case of accidents or disasters, and many states have a minimum coverage requirement before vehicles are allowed out on the road. Having car insurance can protect your assets in case of an expensive accident or emergency.

Generally, most states require drivers to carry liability insurance at the minimum, which covers drivers for property damage and bodily injury of others when you are at fault in an accident. Driving without insurance can result in a ticket, driver’s license suspension, or your car’s registration may also be suspended.

The five basic types of car insurance include liability coverage, uninsured motorist coverage, comprehensive coverage, collision coverage, and medical payment coverage. Further coverage options can include rideshare insurance, gap insurance, forgiveness coverage, glass coverage, custom-equipment coverage, pay-per-mile coverage, roadside assistance, umbrella insurance, rental reimbursement coverage, and original equipment coverage.

For example, motorists who choose an auto insurance policy that only includes the minimum liability requirement might find their personal belongings unprotected after cases of theft or vandalism – which is generally covered under additional comprehensive coverage.

Motorists will want to check out minimum car insurance requirements in their state, as well as what other types of coverage they might want to add, when shopping for car insurance. Also, make sure any policy you are looking at provides enough coverage in the event of a serious accident.

What Is a Home and Auto Insurance Bundle?

A home and auto bundle means buying a combination of insurance coverage policies for both car and home through one overarching insurance provider. With many insurers, this practice can lead to a multipolicy discount.

What Is Homeowners Insurance?

Homeowners insurance gives the policyholder some financial protection when rebuilding, repairing, or replacing your home and belongings in case of covered events like weather damage, fire, smoke, vandalism, theft, or damage from things like falling trees. It can also protect cover legal and medical fees in case of an accident, such as someone being injured on your property.

If you live in an area that is at high risk of flooding you can also add on to your main home insurance with a flood insurance policy. Most homeowners insurance policies do not cover damages resulting from flooding. More information on flood insurance can be found on the National Flood Insurance Program’s website.

Do I Need Homeowners Insurance?

Unlike car insurance, homeowners insurance is not generally required by law. When making a major purchase on a home, many people will opt for a mortgage that is backed by a lender such as a bank or credit union. In this case, it is the lender that requires homeowners insurance – or sometimes the condo association or homeowners’ association for your neighborhood.

How Much Does Homeowners Insurance Cost?

Our study found homeowners insurance to cost between $98 and $169 per month.

Premiums for a homeowners insurance policy can be influenced by a number of factors, including:

  • The home’s location, value, and square footage
  • The homeowner’s age and credit score
  • The policy’s coverage amount, add-ons, and deductible
  • The house type, such as whether it is a single-family home or a townhouse

When choosing a policy, prices have the potential to increase based on add-on coverage or decrease when you find discounts such as bundling.

What Is Car Insurance?

Car insurance can financially cover a motorist in case of an expensive accident, theft, or disaster. This means drivers can get financial support when emergencies occur.

Liability coverage means your auto insurance company will pay for repairs and medical expenses when you are at fault in an accident.

Comprehensive coverage can cover things like damage from hail, animals, riots, or vandalism.

Uninsured/Underinsured motorist coverage can provide support if you are hit by another driver who does not have insurance or whose policy doesn’t cover the cost of the damage to your car.

Do I Need Car Insurance?

Car insurance is required by law in most states, although the specifics can vary. Many states require at least liability insurance, while others require further types of car insurance such as personal injury protection and uninsured motorist protection.

This differs from homeowners insurance, which is generally only required by some lenders or neighborhood homeowners’ associations.

How Much Does Car Insurance Cost?

Car insurance in the U.S. cost an average of $1,190 in 2018 according to the NAIC. The cost will vary by state. The least expensive state is North Dakota with a yearly average of $686.08. The most expensive state in the study was Louisiana with a yearly average of $1,545.82.

However, your rates can differ widely depending on a multitude of other factors including your credit score, age, driving record, gender, marital status, how much coverage you purchase, and the make and model of your vehicle.

For example, in some cases younger drivers might pay a premium, while motorists who find discounts such as multi-vehicle bundling policies can sometimes save costs on their car insurance rates. If you’re interested in more affordable car insurance policies read our guide to the Cheapest Car Insurance Companies of 2021.

Learn More

There is a lot more to learn about home and car insurance. Here are a few pages to help you on your journey.

Other Ratings From 360 Reviews

Our 360 Methodology for Evaluating Home and Auto Insurance Bundles

The following describes our 360 approach to researching and analyzing home and auto bundles to provide guidance to prospective consumers.

1. We researched the companies and products people care most about.

U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which homeowners insurance brands Americans are most interested in. We found 24 companies that stood out for further evaluation using the volume of searches and research among consumers, as well as across the different rating sources. Once we identified these companies, we reviewed the companies’ available homeowners insurance features offered at the time of publication. After conducting a thorough analysis, we were able to condense the initial list to the 12 overall Best Homeowners Insurance Companies.

We compared available coverages from top homeowners insurance companies across several criteria, including cost, coverage limits, policy features, and availability. Research shows that these criteria are among the most important considerations to people shopping for homeowners insurance. We compared cost across different companies using an archetype that, as much as possible, represents a standard American home: a 2,400-square-foot townhome in Naperville, Illinois, with an estimated market value of $450,000, equipped with a home security system and fire alarms, belonging to a non-smoking, four-person family with no pets. We built a standard plan that includes coverage for the home itself, personal property, personal liability, loss of use/additional living expenses, and guest medical protection, with a $1,000 deductible and comparable coverage amounts.

2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.

Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on the personal opinions, tests, or experiences of U.S. News. To calculate the ratings:

(a) We compiled two types of third-party ratings and reviews:

  • Professional Ratings and Reviews: Many independent homeowners insurance evaluating sources have published their assessments of homeowners insurance companies and products online. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
  • Consumer Ratings and Reviews: U.S. News also reviewed published consumer ratings and reviews of homeowners insurance providers. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.

Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.

(b) We standardized the inputs to create a common scale.

The third-party review source data were collected in a variety of forms, including ratings, recommendations and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.

The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company that a source rated was scored in comparison to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:

  • Calculating the Z-Score: The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the company’s rating from the mean and divided it by the standard deviation to produce the Z-Score.
  • Calculating the T-Score: We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
  • Calculating the common-scale rating: We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.

(c) We calculated the 360 Overall Score based on a weighted-average model.

We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than 2 was excluded from the consensus scoring model.

Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.

3. We created a final Home and Auto Bundle score.

Our home and auto bundle scoring methodology is based on a weighted average of the 360 Overall Rating for Best Homeowners Insurance Companies of 2021 and U.S. News’ Best Car Insurance Companies of 2021. Insurance companies appearing in both 360 Reviews’ Best Homeowners Insurance Companies of 2021 and U.S. News’ Best Car Insurance Companies of 2021 were qualified to appear in the Best Home and Auto Insurance Bundles ranking. Furthermore, all companies in the Home and Auto Bundle ranking offer multi-product bundles for homeowners insurance and auto insurance policies. Ratings are not based on the personal opinions, tests, or experiences of U.S. News.

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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