Car and Renters Insurance Bundling (2024)

Bundling your car and renters insurance can score you savings on both policies.

Daria Kelly Uhlig
Daria Kelly Uhlig
  • Licensed Realtor with 10+ years in personal finance content

  • Contributor to Nasdaq and USA Today

Daria is a licensed Realtor and resort property manager specializing in personal finance, real estate, and insurance topics. In her spare time, she practices photography.

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Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
Ashley CoxManaging Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

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Updated June 5, 2023 at 12:00 PM PDT

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Rent takes a serious bite out of your budget, which can make it hard to pay for other necessities, such as car insurance. But while a fair rate should be a priority when you’re shopping for coverage, great customer service is equally important — especially if you have to file a claim. One way to save money without compromising service is to bundle your policies.

Here’s what you need to know about bundling your car and renters insurance.

Quick Facts
  • Bundling lets you leverage your status as a renter to ensure proper coverage for all your personal property, including your car.

  • Depending on the insurer, bundling policies can save you as much as 25%.

  • Keeping all your insurance with one company makes it easier to manage your policies.

What is bundling, and how does it benefit you?

Bundling is a way for insurance companies to offer discounts to customers who purchase more than one type of policy.[1] As a renter, you can save money by purchasing your renters insurance and auto insurance from the same company.

Insurers offer bundling because it brings them more policies and encourages customer loyalty. Customers like it because of the many potential benefits it provides.

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Potential cost savings

Insurers discount policies for customers who have more than one, and the savings can be significant. American Family Insurance, for example, discounts bundled auto and renters insurance policies up to 5%. AARP offers 5% off auto insurance and 20% off renters insurance when you bundle the policies with The Hartford.

Streamlined payment process

Having your renters and auto insurance with the same company lets you track due dates and make payments using a single app or website. Some companies even combine the bills, leaving you with just one payment to make.

Simplified insurance management

Reviewing your coverages and making changes to your insurance policies are easier when you can view them both in one place. And when you need help from an agent, you can get it with just one call instead of two.

Simplified management is especially beneficial if a serious incident forces you to file claims on both policies. In the case of losses resulting from a fire that damaged your belongings and your car, for example, you’d have just one company to deal with in the claims process.

Customized policies

You can customize your bundled policies just as you do policies you purchase separately. You might increase the liability coverage limit for your renters insurance, for example, or add collision coverage to your basic auto insurance.[2] [3]

Bundled policies also make it easier for your insurance agent to evaluate your needs and make personalized recommendations.

Potential drawbacks to bundling

Bundling your renters and auto insurance limits your coverage options to those offered by a single company. That limitation has some drawbacks:

  • Not always the cheapest option: There’s no guarantee that a particular insurance company will discount your bundled policies. And even if it does, the discounted rate might not be lower than you could find with individual policies from other companies.

  • Coverage may suffer: Different insurance companies might have different areas of strength. Limiting yourself to one company’s offerings could leave you with less suitable coverage for one of your bundled policies.

  • Potential for claims to affect multiple policies: Filing claims can drive up your rates, and excessive claims might cause your insurer to drop you.[4] That’s a difficult situation when it affects just one policy. Facing it with two policies at the same time could leave you struggling to pay the rate increase or find new coverage.

  • More restrictions on coverage: Bundling doesn’t limit your coverage, per se — but purchasing all your insurance from a single insurance company might. That’s because policy details, such as coverage limits, vary by company.

  • Possibly limited customer support: Lackluster customer support can be frustrating, to say the least. That frustration is amplified when it affects two separate policies.

How to bundle renters and car insurance

You don’t need to do anything special to bundle your renters and car insurance. Just purchase both policies from the same company, and you’ll automatically create a bundle.

Research available options

Researching your options will ensure that you get the renters and auto coverage you need at a discounted price. You’ll have lots of investigating to do because you’ll need quotes for both policy types purchased separately and together.

The most efficient way to do that is to shop online using an insurance-comparison tool. That way, you only need to enter your information once. But if you want, you also can test different scenarios, such as higher or lower deductibles, to see how they might affect your rates.

Next, use the Better Business Bureau and other review sites to see what kinds of complaints customers have had and how responsive the companies were in resolving them.[5]

Contact insurance companies

Once you’ve done your research, you should have a list of at least a few insurance companies that might fit the bill. You can contact them individually for more details, such as:

  • Can you get an additional discount by paying the premiums for the full term all at once?

  • Does the insurer place either kind of policy with an affiliate? If so, you might still get the bundling discount, but you’ll be dealing with two different insurance companies.

  • If you add additional policy types later — life insurance, for example — will they also be discounted?

  • Are you eligible for additional discounts for each policy?

  • Can you cancel one of your bundled policies before the term is up?

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Determine eligibility and requirements

In most cases, getting insurance is just a matter of filling out an application online or answering an agent’s questions by phone. However, insurance companies can decline to insure you if they think you pose too high a risk of making claims.

Speak with an agent if you’ve filed multiple claims within the last few years, have a low credit score, or have no credit or insurance history to find out how to qualify for coverage.[6]

Change your policies

You can purchase your insurance as soon as you feel confident that you’ve found the company offering the best combination. That might mean purchasing one new policy from a company you’re already working with or two new policies from a new insurance company.

If you already have renters or auto insurance and are moving one or both policies to a new company, set a date for your new policy or policies to take effect. Then, contact the other insurer to have your existing policy or policies terminated on that same date. This step is vital to avoiding gaps in coverage.

Car and renters insurance bundling FAQs

You can often save money by bundling your insurance products, but it can be confusing if you haven’t done it before. Here’s some additional information to help you decide if bundling is a good choice for you.

  • What is a renters and auto insurance bundle?

    A renters and auto insurance bundle means you’ve purchased a renters insurance policy and an auto insurance policy from the same insurer.

  • What does bundled insurance cover?

    Bundled insurance is simply two or more types of insurance from the same company. What your bundle covers depends on the types of policies you purchase. Renters insurance and auto insurance are one example of a bundle. Another example is a home insurance policy and a life insurance policy.

  • If you purchase renters insurance now, can you bundle an auto policy later on?

    Yes. When you’re ready, just purchase the auto policy from the same company, and you’ll have created a bundle.

  • What happens if you cancel one of your bundled policies later on?

    Canceling one of your bundled policies means you no longer have a bundle — assuming your bundle consisted of just two policies. As a result, you’ll lose any multi-policy discount you’re currently receiving on the policy you plan to keep.

  • Is insurance cheaper when you bundle?

    It can be. Insurance companies often discount bundled policies. But it’s a good idea to compare rates for bundled and unbundled policies to make sure you’re saving money.

  • How much can you save by bundling?

    How much you can save depends on your insurance company. Typical savings range from 5% to 20% on one or both policies’ premiums.

  • Is bundling renters insurance worth it?

    Bundling your renters insurance is worthwhile when:

    • It saves you money.

    • Both policies have the coverages you need and want.

    • The insurance company has good customer service.

    • The company has a good reputation for paying claims.

Sources

  1. National Association of Insurance Commissioners. "Bundling." Accessed June 1, 2023
  2. Insurance Information Institute. "Renters Insurance." Accessed June 1, 2023
  3. Insurance Information Institute. "What is covered by a basic auto insurance policy?." Accessed June 1, 2023
  4. Insurance Information Institute. "Do auto insurance premiums go up after a claim?." Accessed June 1, 2023
  5. Insurance Information Institute. "How to find the right auto insurance." Accessed June 1, 2023
  6. Insurance Information Institute. "What if I can't find auto coverage?." Accessed June 1, 2023
Daria Kelly Uhlig
Daria Kelly Uhlig

Daria Uhlig is a freelance writer and editor with over a decade of experience creating personal finance content. Her work appears on USA Today, Nasdaq, MSN, Yahoo Finance, Fox Business, GOBankingRates and AOL. As a licensed Realtor and resort property manager, she specializes in real estate topics, including landlord, homeowners and renters insurance. In her spare time, Daria can be found photographing people and places on Maryland's Eastern Shore. Connect with her on LinkedIn.

Ashley Cox
Edited byAshley CoxManaging Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxManaging Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

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