Best Auto Insurance For Bundling: Save Money, Get Covered

Bundling home and auto insurance is a great way to save money and simplify your policy management. The best auto and home insurance bundles of 2024 include State Farm, Erie, and Nationwide. State Farm offers the biggest home and insurance bundling discount with an average savings of 23% per year. Erie stands out for its extremely competitive bundling rates, while Nationwide is a good choice for its low-cost auto and home insurance rates.

Discounts and savings

Bundling can also make insurance management easier. You only have to deal with one insurance company, and you may be able to manage your policies online in the same place or through the same agent. You can also align the renewal periods and effective dates of both policies or combine your billing statements. Some companies even offer a single-loss deductible, meaning that if your home and car are damaged in the same incident, you only have to pay one deductible.

However, bundling is not always the best deal. Sometimes, purchasing home and auto insurance separately from different companies can be cheaper. It is important to compare quotes for bundled and unbundled policies to determine which option is best for you.

Customer service and satisfaction

State Farm

State Farm has been recognised for its high customer satisfaction ratings, receiving the highest score in the Southwest region in the J.D. Power Auto Insurance Study for 2022. It has a stable financial backing, highly rated customer service, and a wide range of discounts available, including multi-line, safe driver, and student discounts. State Farm also offers a robust mobile app and 24/7 emergency roadside assistance for added convenience and peace of mind.

Amica Mutual

Amica Mutual has consistently received high rankings from J.D. Power for customer satisfaction and has been awarded the highest score in New England for ten consecutive years. As a mutual insurance company owned by its policyholders, Amica returns up to 20% of premiums to eligible policyholders. Amica offers a wide range of insurance products, including auto, home, life, renters, and pet insurance, and provides various discounts, including those for bundling, family, and safe driving practices.

Erie Insurance

Erie Insurance has received high marks for customer satisfaction, particularly in the Mid-Atlantic and North Central regions, and has been recognised by J.D. Power for its performance. Erie offers a range of standard policy features, ridesharing coverage, and the ERIE Rate Lock option, which keeps rates stable unless there are changes to the insured vehicle, driver, or address. Erie also provides multi-policy discounts of up to 25% and has a wide network of agents offering auto, home, life, and business insurance.

Farm Bureau Insurance

Farm Bureau Insurance, specifically its Tennessee branch, has been recognised for its high customer satisfaction ratings in the Southeast region by J.D. Power. Membership with Farm Bureau comes with advantages beyond insurance, including discounts on various goods and services and access to health and safety programs. Farm Bureau Insurance offers competitive rates, a wide range of policy discounts, and standard auto coverage options with some optional add-ons.

The Hartford

The Hartford has received high customer satisfaction ratings in the Northwest region and Florida, particularly catering to drivers over 50 years of age. As an exclusive provider of car insurance for AARP members, The Hartford offers various discounts, a 24/7 car insurance claims hotline, and a range of coverage options, although availability may vary by state. The company also provides business insurance and employee benefits.

Wawanesa

Wawanesa has consistently received high customer satisfaction ratings in California, ranking first in the state in the J.D. Power Auto Insurance Study for three consecutive years. Wawanesa offers competitive rates, particularly for good drivers, and provides multiple discounts, including those for driver, vehicle, and customer appreciation. However, it is important to note that Wawanesa is currently only available in California and Oregon, and it does not have a mobile app.

Coverage options

Auto Insurance Coverage Options:

• Liability coverage: This covers bodily injuries or property damage to others in an accident where you are at fault. It is required by law in most states.
• Collision coverage: This covers damage to your car if you hit another car or object.
• Comprehensive coverage: This includes protection from fire, theft, vandalism, natural disasters, and more.
• Uninsured/underinsured motorist coverage: This covers damages if you are hit by a driver without insurance or with insufficient coverage.
• Personal injury protection: This covers medical expenses and lost wages for you and your passengers, regardless of who is at fault.
• Accident forgiveness: Some companies offer this option, which prevents your rates from increasing after your first at-fault accident.
• New car replacement: This ensures you receive the full value of your car if it is totalled, without deducting for depreciation.
• Rental reimbursement: This covers the cost of a rental car while your vehicle is being repaired.

Home Insurance Coverage Options:

• Dwelling coverage: This covers the cost of repairing or rebuilding your home if it is damaged or destroyed by a covered peril.
• Personal property coverage: This protects your belongings if they are stolen or damaged by a covered event.
• Liability coverage: This covers legal and medical fees if someone is injured on your property or you accidentally damage someone else's property.
• Additional living expenses: If your home becomes uninhabitable due to a covered loss, this covers expenses like hotel stays or restaurant meals.
• Extended replacement cost: Some companies offer this option, which provides additional coverage if the cost of rebuilding your home exceeds your policy limit.
• Flood insurance: Standard home insurance policies usually exclude flood damage. You may need to purchase separate flood insurance, especially if you live in a high-risk area.
• Earthquake insurance: Similar to flood insurance, earthquake coverage is typically purchased as an add-on to your standard policy.
• Umbrella insurance: This provides extra liability coverage beyond the limits of your standard policy, protecting you from major claims or lawsuits.

Financial strength

• Auto-Owners Insurance Group: Auto-Owners exhibits a strong financial backing and ability to pay insurance claims. It has superior AM Best financial strength ratings and has few complaints relative to its size.
• Geico: Geico has tied with Auto-Owners for financial strength. It is the second-largest auto insurance company in the country, dominating just over 14% of the market.
• State Farm: State Farm is the largest personal auto insurance company in the country. It has an A++ (Superior) financial strength rating from AM Best.
• USAA: USAA has impressive financial strength ratings from Moody's, AM Best and S&P. It is only available to active military, veterans and their families.
• Travelers: Travelers is one of the largest insurance providers in the nation. It has an A+ (Excellent) financial strength rating from AM Best.
• American Family: American Family has superior AM Best financial strength ratings. It has a low number of customer complaints relative to its size.

Company reputation

When it comes to company reputation, there are a few key factors to consider when choosing the best auto and home insurance bundle. These include customer satisfaction, financial strength, and industry ratings.

Customer Satisfaction

Customer satisfaction is an important indicator of a company's reputation and can give you an idea of how well the company handles claims and provides service. Look for companies with high customer satisfaction ratings and fewer complaints relative to their size. This information can be found through consumer review sites and organizations like J.D. Power and the National Association of Insurance Commissioners (NAIC).

Financial Strength

The financial strength of an insurance company is crucial, as it indicates their ability to pay out claims. Reputable companies will have strong financial strength ratings from credit rating agencies like AM Best, Standard & Poor's, Moody's, and Demotech. A strong financial rating indicates that the company is stable and likely to be around for the long term.

Industry Ratings

Industry ratings from organizations like J.D. Power and AM Best can provide valuable insights into a company's reputation. J.D. Power conducts studies and surveys to evaluate customer satisfaction, claims handling, and other factors. AM Best focuses on financial strength ratings, providing an indication of a company's ability to meet its financial obligations.

When considering company reputation, it's also worth looking at the number of discounts and coverage options offered, the ease of managing policies, and the overall value provided by the bundle. Comparing quotes and researching company reputations can help you make an informed decision about which auto and home insurance bundle is right for you.

Frequently asked questions