Best Home and Auto Insurance Bundles of 2022

Car insurance is a requirement by law in most states, and home insurance can be required by mortgage lenders or homeowners’ associations – but there are other reasons why you might want to bundle both types of coverage. For home and vehicle owners, bundling these two types of insurance by purchasing both policies from a single insurer can have potential benefits such as discounted prices and streamlined recordkeeping.

Although a bundle may look like a discount up front, you’ll want to take a deeper dive into the fine print to determine exactly what is covered and make sure both auto and home policies work for your personal needs before buying.

USAA is No. 1 in our rating of the Best Home and Auto Insurance Bundles of 2022 with a score of 4.4 out of 5 points.

USAA provides several options for its car insurance coverage such as rental reimbursement, accident forgiveness, complimentary roadside assistance, and car replacement assistance.

As for homeowners insurance, USAA includes identity theft protection, which many competitors offer only as an add-on. On the downside, USAA doesn’t provide as many policy options as other companies in our rating.

USAA gives discounts for alarm systems, multiple policies, and claim-free accounts. There are further available auto discounts for clean driving records, families, loyalty, vehicles in storage, low mileage, good students, safe drivers, and new vehicles.

USAA is only available to those who are members of the military, whether active or retired, and their eligible family members. The company only has offices in nine U.S. cities: Arizona, Colorado, Texas, New York, Maryland, Virginia, and Florida.

Allstate is No. 2 in our rating of the Best Home and Auto Insurance Bundles of 2022 with an overall score of 4 out of 5 points. Insurance quotes are available on the Allstate website.

Car insurance coverage options from Allstate include rental reimbursement, personal umbrella, roadside coverage, and custom equipment coverages.

Allstate offers a variety of optional home insurance coverage for things like valuable possessions, flood, identity protection, electronic data recovery, home-sharing, green improvement reimbursement, water backup, and sports equipment.

On the downside, Allstate has some of the most expensive homeowners insurance premiums in our rating.

However, there are ways to save at Allstate, including discounts for being claim-free, safe driving, paying in full, being a responsible payer or smart student, signing up for automatic payments, or having an anti-theft device or anti-lock brakes.

State Farm takes third place in our rating of the Best Home and Auto Insurance Bundles of 2022 with 3.9 out of 5 points overall in this category.

On the car insurance side, State Farm offers additional coverage options for rental cars, medical payments, emergency road service, and rideshare drivers. State Farm’s Payoff Protector is a form of GAP coverage that will pay the difference between the market value of your car and what you owe if your vehicle is stolen or totaled. However, it is only available with a State Farm car loan rather than one of the company’s auto insurance policies.

As for home insurance coverage, State Farm provides the option to include identity theft protection. Water backup coverage is also optional, which some competitors in our rating don’t offer. State Farm updates your coverage annually to keep pace with inflation.

While State Farm doesn’t offer a lot of discounts on its homeowners policies compared to other companies in our rating, its car insurance discounts include vehicle safety, airbags, anti-theft systems, good student, accident-free, and defensive driver training.

State Farm offers a number of useful digital tools, including a mobile app that lets you manage your account, submit and check on claims, and request roadside assistance. The company also has a Drive Safe & Save mobile app that tracks your driving habit, earning you potential discounts.

Finally, you can find a repair shop and rent a car to use while your car is in the shop through the State Farm website.

American Family earns the No. 4 position in our rating of the Best Home and Auto Insurance Bundles of 2022, with 3.8 out of 5 overall points.

American Family also earns a spot on our rating of the Most Affordable Home Insurance Companies of 2022 with a premium of about $150 a month, according to our sample archetype. While its rates for drivers with moving violations or DUIs are higher than for drivers with clean records, they are still lower than many of American Family’s competitors.

American Family doesn’t offer online quotes and estimates. While you can start a quote online you must contact an agent to complete it. You also must contact an agent to purchase a homeowners insurance policy.

However, American Family allows policyholders to add coverage for identity theft protection and water backups. For auto insurance, American Family offers additional coverage for emergency road service, rental reimbursement, and accidental death and dismemberment.

American Family offers plenty of home insurance discounts, including for alarm systems, renovated homes, home purchasing, loyalty, generational, age of home, and savvy habits for online payments. There are also car insurance discounts for young volunteers, low mileage, good students, auto safety equipment, going paperless, and good drivers.

Nationwide ties for the No. 5 spot in our rating of the Best Home and Auto Insurance Bundles of 2022, earning 3.7 out of 5 possible points in a tie with Farmers Insurance.

For car insurance, Nationwide offers auto options roadside assistance, vanishing deductible, total loss deductible waiver, and accident forgiveness. Although Nationwide’s car insurance rates are in line with a number of companies we reviewed, our research shows that drivers 25 and under will pay a higher premium than the national average.

In terms of home insurance coverage, water backup, replacement cost, and identity theft protection coverage options are available with Nationwide’s policies.

Nationwide homeowners policies offer discounts for having protective devices, a new home, or being claim-free. You can also earn discounts with Nationwide for having anti-theft devices installed in your car, or for being a safe driver, defensive driver, accident-free, or a good student.

Despite its name, Nationwide does not offer auto insurance in Massachusetts, Louisiana, Hawaii, or Alaska. You also can’t get homeowner policies in Massachusetts, Rhode Island, New Jersey, Florida, Louisiana, New Mexico, Hawaii, or Alaska.

Farmers is fifth, tied with Nationwide, in our Best Home and Auto Insurance Bundles of 2022 rating. Farmers has a score of 3.7 out of 5 points.

Additional types of car insurance coverage Farmers offers include new car replacement, ridesharing, spare parts, windshield and safety glass, towing and roadside assistance, and umbrella coverage.

Farmers’ tiered homeowners insurance policies increase standard coverage limits and features as you go higher up in tiers. For example, its Premier tier can include Guaranteed Replacement Cost coverage if your home meets certain conditions.

Farmers offers many home insurance discounts, including discounts for multiple policies, loyalty, protective devices, claim-free accounts, and new home credit. The company also offers state-specific home insurance discounts in California, Arizona, Nevada, and Alabama. Car insurance discounts from Farmers can also include anti-theft devices, good student, and safe drivers.

Farmers also offers declining deductibles in its homeowners insurance policies, which takes $50 off your deductible each year you remain a customer, and claim forgiveness, which prevents your rate from going up after your first claim.

Progressive is No. 7 in our Best Home and Auto Insurance Bundles of 2022.

On the car insurance side, Progressive offers additional auto coverages such as roadside assistance, rental car reimbursement, rideshare, and custom parts and equipment value. Because Progressive works with other companies who will administer your policy it’s able to offer a wide range of policies and coverage options.

Progressive’s HomeQuote Explorer tool lets you compare home insurance rates from multiple companies. You can also compare car insurance rates using a similar online tool.

Progressive has discounts for teen drivers, good students, safe drivers, and going paperless. Progressive also offers discounts for homeowners insurance, including a new home credit and a discount for having protective devices.

It is important to note that policies purchased through Progressive will be with insurers both affiliated and unaffiliated with Progressive, and the individual insurer will be responsible for a policyholder’s claims.

The right home and car insurance bundle for you will include all of the required insurance for your state and assets. It is important for both the homeowners policy and auto policy to cover everything required by your state and your lender. They should also provide enough coverage to meet your individual needs. Below we will explore how to find the best individual homeowners and auto policies for you.

Shopping around for the right car insurance company can help you save money and find coverage that best suits your needs. If you’re looking for a new insurer, one of the first things to do is determine the type and amount of coverage you need.

Most states require drivers to carry minimum liability insurance. If you’re at fault for an accident, this type of insurance will cover any bodily injuries or property damage sustained by the other driver or their passengers. Depending on where you live, you may need to purchase uninsured/underinsured motorist insurance (UM/UIM), personal injury protection (PIP), or medical payment coverage (MedPay).

In addition to state requirements, keep any lender requirements in mind. If you finance your car, you may need to purchase additional types of insurance, like collision and comprehensive coverage.

Once you meet any state or lender requirements, you can choose to add other types of coverage to your policy. Common options include the following:

As you review auto insurance companies, verify that they offer the coverage options you want.
After you determine what type and amount of coverage you need, compare insurers by reading consumer and professional reviews, checking out their website. Once you narrow your list down to a few insurers, you can get free quotes to determine which company offers the most affordable policy options.

A home and auto bundle means buying a combination of insurance coverage policies for both car and home through one overarching insurance provider. With many insurers, this practice can lead to a multipolicy discount.

Many leading insurers promise savings of hundreds of dollars if you bundle your home and auto insurance policies. This is true in many, but not all, cases, according to the Insurance Information Institute (III). If you drive an expensive sports car or own a home in a high-risk area, for example, you may find that combined policies from one company are more expensive than separate auto and home insurance coverage from two different insurers.

Homeowners insurance gives the policyholder some financial protection when rebuilding, repairing, or replacing your home and belongings in case of covered events like weather damage, fire, smoke, vandalism, theft, or damage from things like falling trees. It can also cover legal and medical fees in case of an accident, such as someone being injured on your property.

If you live in an area that is at high risk of flooding you can also add on to your main home insurance with a flood insurance policy. Most homeowners insurance policies do not cover damages resulting from flooding. More information on flood insurance can be found on the National Flood Insurance Program’s website.

Unlike car insurance, homeowners insurance is not generally required by law. When making a major purchase on a home, many people will opt for a mortgage that is backed by a lender such as a bank or credit union. In this case, it is the lender that requires homeowners insurance – or sometimes the condo association or homeowners’ association for your neighborhood.

Our study found homeowners insurance to cost between $98 and $169 per month.

Premiums for a homeowners insurance policy can be influenced by a number of factors, including:

When choosing a policy, prices have the potential to increase based on add-on coverage or decrease when you find discounts such as bundling.

Lemonade is rated No. 1 in our Best Homeowners Insurance Companies of 2022. It is noteworthy because nearly all of its customer transactions, from application to claims to policy termination can be handled online. USAA, available only to members of the military and their families, and Amica are rated Nos. 2 and 3, respectively.

Car insurance can financially cover a motorist in case of an expensive accident, theft, or disaster. This means drivers can get financial support when emergencies occur.

Liability coverage means your auto insurance company will pay for repairs and medical expenses when you are at fault in an accident.

Comprehensive coverage can cover things like damage from hail, animals, riots, or vandalism.

Uninsured/Underinsured motorist coverage can provide support if you are hit by another driver who does not have insurance or whose policy doesn’t cover the cost of the damage to your car.

Car insurance is required by law in most states, although the specifics can vary. Many states require at least liability insurance, while others require further types of car insurance such as personal injury protection and uninsured motorist protection.

This differs from homeowners insurance, which is generally only required by some lenders or neighborhood homeowners’ associations.

Car insurance in the U.S. cost an average of $1,190 in 2018 according to the NAIC. The cost will vary by state. The least expensive state is North Dakota with a yearly average of $686.08. The most expensive state in the study was Louisiana with a yearly average of $1,545.82.

However, your rates can differ widely depending on a multitude of other factors including your credit score, age, driving record, gender, marital status, how much coverage you purchase, and the make and model of your vehicle.

For example, in some cases, younger drivers might pay a premium, while motorists who find discounts such as multi-vehicle bundling policies can sometimes save costs on their car insurance rates. If you’re interested in more affordable car insurance policies read our guide to the Cheapest Car Insurance Companies of 2022.

The No. 1 company in our ranking of Best Car Insurance Companies of 2022 is USAA. However, USAA is not available to all applicants, only to members of the military and their families. State Farm is No. 2 in our rating.

There is a lot more to learn about home and car insurance. Here are a few pages to help you on your journey.

The following describes our 360 approach to researching and analyzing home and auto bundles to provide guidance to prospective consumers.

1. We researched the companies and products people care most about.

U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which homeowners insurance brands Americans are most interested in. We found 24 companies that stood out for further evaluation using the volume of searches and research among consumers, as well as across the different rating sources. Once we identified these companies, we reviewed the companies’ available homeowners insurance features offered at the time of publication. After conducting a thorough analysis, we were able to condense the initial list to the 12 overall Best Homeowners Insurance Companies.

We compared available coverages from top homeowners insurance companies across several criteria, including cost, coverage limits, policy features, and availability. Research shows that these criteria are among the most important considerations to people shopping for homeowners insurance. We compared cost across different companies using an archetype that, as much as possible, represents a standard American home: a 2,400-square-foot townhome in Naperville, Illinois, with an estimated market value of $450,000, equipped with a home security system and fire alarms, belonging to a non-smoking, four-person family with no pets. We built a standard plan that includes coverage for the home itself, personal property, personal liability, loss of use/additional living expenses, and guest medical protection, with a $1,000 deductible and comparable coverage amounts.

2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.

Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on the personal opinions, tests, or experiences of U.S. News. To calculate the ratings:

(a) We compiled two types of third-party ratings and reviews:

Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.

(b) We standardized the inputs to create a common scale.

The third-party review source data were collected in a variety of forms, including ratings, recommendations and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.

The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company that a source rated was scored in comparison to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:

(c) We calculated the 360 Overall Score based on a weighted-average model.

We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than 2 was excluded from the consensus scoring model.

Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.

3. We created a final Home and Auto Bundle score.

Our home and auto bundle scoring methodology is based on a weighted average of the 360 Overall Rating for Best Homeowners Insurance Companies of 2022 and U.S. News’ Best Car Insurance Companies of 2022. Insurance companies appearing in both 360 Reviews’ Best Homeowners Insurance Companies of 2022 and U.S. News’ Best Car Insurance Companies of 2022 were qualified to appear in the Best Home and Auto Insurance Bundles ranking. Furthermore, all companies in the Home and Auto Bundle ranking offer multi-product bundles for homeowners insurance and auto insurance policies. Ratings are not based on the personal opinions, tests, or experiences of U.S. News.