Should You Bundle Auto and Renters Insurance, and Is It Worth It?

Bundling auto and renters insurance can save you money and simplify policy management, but it isn’t automatically the cheapest option. The best way to know whether a bundle is worth it is to compare coverage and the total cost of bundled policies against separate policies from multiple insurance companies.

Bundling auto and renters insurance means buying both policies from the same insurer. Many insurance companies offer a multi-policy discount for bundling.¹ You can usually manage both policies through one online account and with a single monthly bill. Bundling can also simplify the claims filing process.

Some insurance companies partner with other insurers to provide renters insurance, which means you may have different companies for each policy.

You can typically save between 5% and 15% with a renters and auto insurance bundle discount. But your actual savings can vary by insurer, location, your claims history, coverage needs, and other rating factors.

No. Insurance bundling may offer significant savings for some people, but be more expensive for others. Insurance pricing is highly personalized, especially for car insurance. 

Many rating factors, such as your age, driving record, vehicle, and ZIP code, determine your auto premium. One company may offer a lower price for renters insurance but charge more for your car insurance than your current insurer. In that case, bundling may not be worth it.

The only way to know if bundling is a good idea is to compare quotes for bundled and separate policies. Use the same coverage types, limits, and deductibles to get a true price comparison. Then, compare the total cost of the bundled and separate policies to see which option offers the best deal.

The following table shows nine of the best insurance companies offering an auto and renters insurance bundle. Some insurers apply bundling discounts to just the auto insurance policy, the renters policy, or both.

Follow these steps to find the best renters and auto bundle for you:

1. Check your price: Start an online quote or speak with an insurance agent to get personalized quotes.

2. Ask about other discounts and bundles: Many insurers offer additional discounts for things like safe driving, going paperless, setting up autopay, and being claims-free. If your household situation changes, some insurers may offer other bundle savings if you add life insurance or homeowners insurance.

3. Select a bundle: Once you find the right bundle for your specific needs, complete an application for auto and renters coverage with the same company.

Liability coverage is the most important coverage to consider because it protects you financially if you cause damage or injury to others. Consider the value of your assets when deciding how much liability coverage to buy.

Almost all states require a minimum amount of auto liability coverage to legally drive, but requirements vary by state. Most industry experts recommend buying at least 100/300, or $100,000 per person, $300,000 per accident in bodily injury liability coverage.²

Insurance companies typically offer at least $100,000 in liability coverage on renters insurance policies. You can usually increase your limit to $300,000 or $500,000, and some insurers offer limits up to $1 million. Higher limits may be worth considering if you have young children, a dog, a swimming pool, a trampoline, or other potential sources of injury or property damage.³

A renters insurance policy also includes personal property coverage, which can help replace your belongings after a covered loss. Choose enough coverage to replace all your personal belongings in a total loss, such as a fire. Loss of use coverage can help pay additional living expenses you incur while being displaced from your rental after a covered loss.⁴

Auto lenders and leasing companies typically require comprehensive and collision coverage to protect their financial interest in your vehicle. These coverages are optional if you own your car outright, but you may want them if you couldn’t comfortably afford to repair or replace your vehicle after a covered loss.

Renters insurance protects your belongings and finances in ways your landlord’s policy doesn’t. A landlord’s policy covers the building, while renters insurance can cover your personal property, liability, and additional living expenses after a covered loss.³

Landlords typically require renters insurance as part of the lease.⁵ Check your rental agreement for required minimum limits.

Bundling on a budget? Use these tips to get a great deal:

1. Do an “apples-to-apples” comparison. Compare the same coverages, limits, and deductibles in every quote to get a true price comparison.

2. Get bundled and separate quotes. Compare the total annual cost — after all applicable discounts — for bundled and separate policies to find the cheapest option.

3. Narrow down your choices. Although price is important, consider other factors, such as the insurance company’s customer satisfaction, claims process, financial strength, whether it offers a single loss deductible if you have a claim on both policies, and account management.

Luva makes it easy to compare policies side by side to see which carrier offers the best price and coverage. If you have questions, your personal insurance guide, Lu, is ready to help.