If you have separate home and auto insurance with different carriers, you're almost certainly leaving money on the table. Bundling — placing both policies with one carrier — is the biggest insurance discount available. Here's a complete guide.
How Much Does Bundling Save?
Typical Michigan savings:
- 10-15% off auto
- 10-15% off home
- Combined savings: $400-$900/year for typical families
Higher-value homes and multiple vehicles tend to save more.
Why Carriers Offer Bundle Discounts
- Lower customer acquisition cost
- Higher retention (bundled customers stay 3-5× longer)
- Better loss ratios (bundled customers file fewer claims)
- Cross-sell opportunities
Bundle Discount Tiers
Most carriers offer escalating discounts based on number of products:
- 2 products (home + auto): ~15%
- 3 products (home + auto + umbrella): ~17-18%
- 4 products (add life, boat, etc.): ~18-20%
Other Bundle Benefits
Single Deductible Endorsement
Some carriers offer a single deductible across home and auto for events affecting both (e.g., garage fire damaging car and house).
Streamlined Claims
Multi-vehicle incident? One claim adjuster instead of two carriers pointing fingers.
One Renewal Date
Easier to manage and review annually.
Single Bill
Simpler than tracking multiple insurance bills.
Cross-Policy Underwriting Leniency
Carriers often look past minor issues when you have a strong overall relationship.
When NOT to Bundle
Bundle savings are real but not unlimited. Sometimes a non-bundled carrier offers such a better price on one product that the total is lower than bundled.
Examples Where Splitting Wins
- Specialty home (historic, manufactured) needs Foremost while auto is best at Farmers
- One driver has SR-22 needs (Bristol West) while home is best elsewhere
- High-value home needs specialty HNW carrier
How to Properly Compare Bundle vs Split
Don't compare just the bundle discount — compare the total cost of both products together. Get quotes from:
- One carrier bundled
- The best individual carrier for each product
- Sometimes a second bundled carrier
The math sometimes surprises people. Independent agents like us run all the comparisons.
Bundling at Farmers (Our Primary Carrier)
Farmers has one of the strongest bundle programs in Michigan:
- Up to 20% bundle discount
- Single deductible endorsement
- Easy multi-product policy management
- Strong claim service when both policies are with one carrier
- Signal app discount on top of bundle
Common Bundle Add-Ons
Once you have home + auto bundled, additional discounts available by adding:
- Umbrella policy ($1M+ for ~$200-$300/year)
- Life insurance
- Boat or RV
- Renters (for adult children)
- Identity theft protection
Get a Bundle Quote
Knight Family Agency makes bundling simple. We collect your information once, quote multiple carriers, and present the best bundle option alongside split options if those make more sense. Fill out our quote form to start.
Get a Free Michigan General Insurance Quote
Local Farmers Insurance agent in Belding, MI. Most clients save $1,200+ per year.