The idea of bundling is very popular in marketing. The theory suggests that if you give the insurance company more of your risk (by combining home and auto), they will give you a discount, and you should save money.

While it is true that you get a “bundle discount,” that does not necessarily mean you are paying the lowest total price .

Here is the reality many people miss: The auto insurance rate at one company might be great, but their home insurance rate might be significantly higher than the competition.

For example, let’s say a bundled quote includes a home insurance premium of $4,000. We might be able to find a separate policy with another carrier like American Integrity or Security First for $2,500. Even if the bundle gives you a 10% discount on your car, it usually isn’t enough to make up for a $1,500 difference in home insurance premiums.

At my agency, even though we are an Allstate agency, we try to quote your home with as many approved providers as possible. We look at the math. If the bundle is cheaper, great. But often, we find that keeping them separate actually saves the client more money.

Insurance companies have different risk appetites. Sometimes a carrier wants to grow aggressively in a specific zip code, so they drop their rates to acquire market share. If you just blindly bundle without checking the individual costs, you might miss out on those savings.

We always do that comparison for our clients to ensure the “discount” is actually a deal.