Did you know 1 in 3 Americans overpay on insurance by not bundling renters and auto policies? In 2025, bundling could save you 300–300–1,000+ a year—money that could fund a vacation, pay off debt, or pad your savings. This guide cracks open the hidden perks, pitfalls to avoid, and step-by-step strategies to score the best bundle deal. Let’s get started!
What Is Bundling Renters and Auto Insurance?
Bundling means buying both policies from the same insurer. It’s like a “buy one, get one discounted” deal but for insurance. Most major companies (e.g., State Farm, Geico) offer this, and savings can stack up fast.
5 Jaw-Dropping Benefits of Bundling
- Save Up to 30%: Insurers reward loyalty. For example:
- Geico offers up to 25% off.
- Allstate discounts bundles by 30% in some states.
- Single Bill, Less Stress: No more juggling multiple due dates.
- Extra Perks: Free add-ons like identity theft protection (Progressive) or vandalism coverage (Liberty Mutual).
- Simpler Claims: One call handles both car and rental claims.
- Discount Stacking: Combine bundling with safe driver, military, or smart home savings.
Real Savings: 2025 Price Comparisons
Here’s what bundling looks like for a 30-year-old driver with a clean record:
| Company | Avg. Annual Auto Cost | Avg. Annual Renters Cost | Bundle Savings |
|---|---|---|---|
| State Farm | $1,250 | $160 | $320 |
| Geico | $1,100 | $140 | $260 |
| Allstate | $1,400 | $180 | $400 |
| Progressive | $1,300 | $150 | $280 |
| Liberty Mutual | $1,450 | $170 | $350 |
Real-Life Example: Sarah, 29, in Florida, saved $540/year by switching to an Allstate bundle. She used the savings to upgrade her apartment’s security system!
Top 5 Insurance Companies for Bundling (2025)
- State Farm
- Best For: Personalized service, local agents.
- Bundle Discount: Up to 23%.
- Perks: Accident forgiveness, rideshare coverage.
- J.D. Power Rating: 4.2/5.
- Geico
- Best For: Tech-savvy users (easy app claims).
- Bundle Discount: Up to 25%.
- Perks: Mechanical breakdown insurance.
- J.D. Power Rating: 4.0/5.
- Allstate
- Best For: High savings, customizable plans.
- Bundle Discount: Up to 30%.
- Perks: Claim RateGuard® (no rate hikes after first claim).
- J.D. Power Rating: 3.8/5.
- Progressive
- Best For: Budget flexibility.
- Bundle Discount: Up to 22%.
- Perks: Name Your Price® tool, pet injury coverage.
- J.D. Power Rating: 3.7/5.
- Lemonade
- Best For: Renters-only seekers (but partners with Metromile for auto).
- Bundle Discount: 10% off renters insurance.
- Perks: AI-driven claims (settlements in minutes).
- J.D. Power Rating: 4.3/5 (renters category).
How to Choose the Perfect Bundle (Without Regrets)
- Compare Coverage, Not Just Price:
- Renters insurance should cover personal property, liability, and temporary housing.
- Auto insurance must meet your state’s minimum liability requirements.
- Ask About Exclusions:
- Does the policy cover floods, earthquakes, or mold?
- Check Discount Eligibility:
- Are you a student, veteran, or homeowner? Speak up!
- Read Reviews:
- Check BBB complaints or Reddit threads for real user experiences.
- Test Customer Service:
- Call their claims line. Is it 24/7? How long do they take to answer?
When Bundling Is a Bad Idea
- Your Renters Policy is Cheaper Alone: Example: Lemonade offers renters plans from $5/month—less than most bundles.
- You Need Specialized Coverage: Ex: If you own expensive jewelry, a standalone policy (like Chubb) might offer better protection.
- Poor Customer Service: If the insurer has low ratings, savings aren’t worth the hassle.
FAQs: Bundling Renters and Auto Insurance
1. Does bundling lower both policies’ costs?
Yes! Most insurers discount both policies. Always ask for a breakdown.
2. Can I bundle with a bad credit score?
Yes, but discounts may shrink. Companies like The General specialize in high-risk drivers.
3. How fast can I save?
Immediately! Discounts apply as soon as both policies are active.
4. What if I move or buy a car?
Update your insurer ASAP. Most adjust your bundle without fees.
5. Is bundling safe long-term?
Yes, but review your policies yearly. Prices and life circumstances change!
Pro Tip: Negotiate Like a Pro
Insurers want to keep you. If you find a cheaper quote, ask your current provider to match it. 63% of customers who haggle save extra!
Final Word
Auto and renters insurance bundles aren’t just smart—they’re a no-brainer for saving money and time. But always do your homework: compare, ask questions, and read the fine print. Share this guide to help friends stop wasting cash on overpriced insurance! 🚗💸
Got questions? Drop them below—we’ll answer within 24 hours!
Melanie Lopez is a passionate content specialist at American National Car Insurance, dedicated to simplifying car insurance for every American driver. With years of industry expertise, she crafts informative and engaging articles to help users make confident insurance decisions.