Home and Auto Insurance Quote Buying Guide: How to Save Money in 2025

Finding the right insurance can feel overwhelming, but getting a combined home and auto insurance quote is one of the most effective ways to simplify your finances and unlock significant savings. By bundling policies with a single provider, you not only streamline bill payments but also often access discounts that aren’t available for individual policies. This guide will walk you through everything you need to know to compare insurance quotes intelligently, understand your coverage, and ultimately lower your annual premiums without sacrificing protection for your most valuable assets.

What to Know

Bundling Saves Money: Combining home and auto policies with one insurer can save you an average of 10-25%. Insurers reward this loyalty with multi-policy discounts.
Coverage is Key: The cheapest quote isn’t always the best. Ensure you’re comparing apples-to-apples coverage levels for both your property and vehicles to avoid being underinsured.
Your Credit Score Matters: Insurers in most states use a credit-based insurance score to help determine your rates. A higher score often leads to lower premiums.
Shop Around Regularly: Don’t set and forget your insurance. Your needs change, and rates fluctuate, so it’s wise to compare new insurance quotes every one to two years.
Understand Exclusions: Every policy has limitations. Knowing what isn’t covered, like floods for home insurance or business use for auto, is as important as knowing what is.

Understanding Home Insurance Basics: What Are You Protecting?

Before you can effectively compare any home insurance quote, you need to understand what a standard policy actually covers. Homeowners insurance is a package policy, meaning it protects against both property damage and liability claims. While specifics can vary, most policies are built around a few core coverage types.

First is Dwelling Coverage (Coverage A), which protects the physical structure of your house—the roof, walls, foundation, and attached structures like a garage. A key concept here is the “80% rule,” which many insurers use. To be fully reimbursed for a partial loss, you generally must insure your home for at least 80% of its replacement cost. If you insure it for less, the insurer may only cover a portion of the damages.

Next is Personal Property Coverage (Coverage C). This covers your belongings inside the home, such as furniture, electronics, and clothing, if they are stolen, damaged, or destroyed by a covered event. It’s crucial to create a home inventory to determine how much coverage you actually need. High-value items like jewelry or art often have limited coverage and may require a special endorsement or rider.

Finally, Liability Protection (Coverage E) is a critical component. It protects you financially if someone is injured on your property and you are found legally responsible. It also covers damage you or your family members (including pets) cause to other people’s property. This coverage can prevent a lawsuit from devastating your financial future.

Understanding Auto Insurance Basics: More Than Just a Legal Requirement

While carrying auto insurance is legally required in nearly every state, a basic policy does more than just keep you on the right side of the law. A good auto insurance quote reflects a policy that provides robust financial protection in case of an accident. Understanding the main components is essential for choosing the right coverage levels for your needs.

Liability Coverage is the foundation of any auto policy and is required by most states. It’s broken into two parts: Bodily Injury Liability, which covers medical costs for others if you’re at fault in an accident, and Property Damage Liability, which pays for repairs to the other person’s vehicle or property. State minimums are often very low, so financial experts recommend carrying much higher limits to protect your assets.

Collision Coverage pays to repair or replace your own vehicle after an accident, regardless of who is at fault. If you hit another car or an object like a fence, this is the coverage that kicks in. For older cars with low market value, you might consider dropping this coverage to save money, but for newer or financed vehicles, it’s essential.

Comprehensive Coverage protects your car from non-collision events. This includes theft, vandalism, fire, falling objects, or damage from weather like hail. Like collision coverage, it comes with a deductible, which is the amount you pay out-of-pocket before the insurance company pays the rest.

How to Compare Home and Auto Insurance Quotes Like a Pro

Getting the best deal on insurance isn’t just about finding the lowest price—it’s about finding the best value. A strategic approach to comparing quotes ensures you get the right protection without overpaying. Follow these steps to navigate the process effectively.

Gather Your Information: Before you start, collect all necessary documents. For an auto insurance quote, you’ll need your driver’s license number, vehicle identification number (VIN), and driving history for all drivers. For a home insurance quote, you’ll need your property address, the square footage, the year it was built, and details about its construction (e.g., roof type, foundation).
Determine Your Coverage Needs: Don’t default to state minimums for auto insurance or the bare minimum for your home. Consider your net worth and assets. Your liability limits should be high enough to protect them from a lawsuit. For your home, insure it for its full replacement cost, not its market value.
Get Multiple Insurance Quotes: Aim for at least three to five quotes from different types of insurers. Check with direct writers (like Geico or Progressive), captive agents who represent one company (like State Farm or Allstate), and independent insurance agents who can quote from multiple companies.
Make an Apples-to-Apples Comparison: This is the most critical step. When you review quotes, ensure the coverage limits, deductibles, and endorsements are identical across all of them. A quote might look cheaper because it has a $2,000 deductible instead of a $500 one, or lower liability limits. Create a simple spreadsheet to track each company’s offer for the same level of protection.
Research Company Reputation: Price is important, but so is service. Look up customer satisfaction ratings from sources like J.D. Power and check the financial strength ratings from A.M. Best. A cheap policy is worthless if the company is difficult to work with during a claim.

Key Factors That Influence Your Home Insurance Rates

Ever wonder why your neighbor pays a different premium for a similar house? Home insurance rates are calculated using a complex algorithm that assesses risk. Understanding these factors can help you identify areas where you might be able to find savings.

Location, Location, Location: This is one of the biggest drivers of cost. Insurers look at the frequency of claims in your area, including theft rates and weather-related risks like hurricanes, tornadoes, or wildfires. Proximity to a fire station and fire hydrants can also lower your premium.

Home Characteristics: The age, construction materials, and condition of your home play a huge role. A newer home built with fire-resistant materials will be cheaper to insure than an older home with outdated electrical and plumbing systems. The age and material of your roof are particularly important, as roof claims are very common.

Your Claims History: If you’ve filed multiple claims in the past five years, insurers will view you as a higher risk and charge you more. Even small claims can add up and impact your rates, which is why it’s often better to pay for minor repairs out-of-pocket rather than filing a claim.

Protective Devices: Insurers love features that reduce risk. Installing a monitored security system, smoke detectors, and deadbolt locks can earn you a discount. Some insurers also offer discounts for water-leak detection systems or automatic water shut-off valves.

Key Factors That Influence Your Auto Insurance Rates

Just like with home insurance, your auto insurance premium is a reflection of how risky an insurer thinks you are. Dozens of data points go into this calculation, but a few key factors carry the most weight. Knowing what they are can empower you to take control of your costs.

Your Driving Record: This is the most obvious factor. A history of accidents, traffic tickets, or a DUI will significantly increase your rates. A clean record, on the other hand, will qualify you for safe driver discounts, which can be substantial.

The Vehicle You Drive: The make, model, and year of your car matter. Insurers look at a vehicle’s safety ratings, repair costs, and likelihood of being stolen. A sensible sedan will almost always be cheaper to insure than a high-performance sports car or a luxury SUV with expensive parts.

Pro Tip: A common myth is that the color of your car affects your insurance rates. Insurers do not ask for your car’s color when you get a quote. They are far more interested in its make, model, body type, and engine size.

Where You Live and Park: Your ZIP code has a major impact. Urban areas with higher rates of accidents, theft, and vandalism typically have higher premiums than rural areas. Where you park your car—in a secure garage versus on the street—can also influence your rate.

Annual Mileage and Vehicle Use: The more you drive, the higher the chance of an accident. Insurers will ask for your estimated annual mileage and whether you use the car for commuting, business, or just pleasure. A long daily commute will result in a higher premium than occasional weekend driving.

The Power of the Bundle: Is It Really Cheaper to Combine Policies?

Yes, in the vast majority of cases, it is significantly cheaper to bundle your home and auto insurance. Insurers offer this multi-policy discount for a simple reason: it’s good for their business. Customers who bundle are more likely to stay with the company long-term, which reduces administrative costs. They also tend to be more responsible clients overall, representing a lower risk profile.

The savings can be substantial, often ranging from 10% to 25% off the combined total of the individual policies. For example, if your auto policy is $1,500 per year and your home policy is $1,200, a 15% bundling discount would save you $405 annually. Beyond the financial benefit, bundling simplifies your life. You have one company to deal with, one bill to pay, and often one agent who understands your complete insurance portfolio.

However, bundling isn’t always the cheapest option. In some cases, you might find a great deal on auto insurance from one company and a much better rate on home insurance from another, and the combined cost of these two separate policies could be less than a bundled price. This is especially true if you have a unique risk profile, such as a poor driving record but a brand-new, low-risk home. The only way to know for sure is to get quotes for both bundled and standalone policies.

What’s Not Covered? Common Exclusions in Home and Auto Policies

An insurance policy is a contract, and like any contract, it has limitations. Understanding common exclusions is crucial for managing your risk and avoiding surprises when it’s time to file a claim. Assuming everything is covered is a costly mistake.

For homeowners insurance, some of the most common exclusions include:

Floods and Earthquakes: Damage from these natural disasters is almost never covered by a standard policy. You need to purchase separate flood insurance (often through the National Flood Insurance Program) and earthquake insurance. – Maintenance Issues: Policies are designed to cover sudden and accidental damage, not problems from neglect. Issues like mold, pest infestations, or a worn-out roof are typically not covered.
Sewer Backup: Water damage from a backed-up sewer or drain is usually excluded unless you purchase a specific endorsement for it.

For auto insurance, common exclusions to be aware of are:

Business Use: If you use your personal vehicle for business activities, like ridesharing or food delivery, your standard policy may not cover you during those times. You’ll likely need a commercial policy or a special rideshare endorsement. – Intentional Damage: Insurance doesn’t cover damage you cause to your own vehicle on purpose. – Wear and Tear: Routine maintenance and gradual deterioration of your car, such as worn-out tires or brake pads, are not covered.
Racing: Any damage that occurs while participating in organized racing or speed contests is excluded.

Actionable Tips for Reducing Your Home and Auto Insurance Premiums

Beyond bundling, there are many proactive steps you can take to lower your insurance costs. Small changes can add up to significant savings over time. Here are some of the most effective strategies.

Raise Your Deductible: The deductible is what you pay out-of-pocket on a claim before insurance kicks in. By raising your deductible from, say, $500 to $1,000, you can lower your premium by as much as 25%. Just be sure you have enough in savings to cover the higher amount if you need to file a claim.
Ask About Discounts: You might be eligible for discounts you don’t even know about. Ask your agent about potential savings for being a good student, taking a defensive driving course, having anti-theft devices in your car, or being a member of certain professional organizations or alumni groups.
Improve Your Home’s Safety: As mentioned earlier, installing a monitored security system, smoke detectors, and deadbolts can lead to discounts. You may also get a discount for upgrading your home’s electrical, plumbing, or heating systems to reduce the risk of fire and water damage.
Maintain a Good Credit Score: A strong credit history demonstrates financial responsibility, which insurers see as an indicator of lower risk. Improving your credit score can have a direct, positive impact on your premiums.

The Surprising Role of Your Credit Score in Insurance Quotes

Many people are surprised to learn that their credit history can affect what they pay for insurance. Insurers in most states use what’s called a credit-based insurance score to help predict the likelihood that you’ll file a claim. It’s important to note that this is different from your traditional FICO or VantageScore credit score, though it is derived from the information in your credit report.

Statistical data has shown a strong correlation between how a person manages their financial affairs and their claims history. According to the Federal Trade Commission, individuals with lower credit-based insurance scores tend to file more claims. Therefore, insurers use this score as one of many factors to set rates. A better score can translate directly into a lower premium, while a poor score can lead to higher costs.

Because of this connection, managing your credit is a powerful way to manage your insurance costs. You can start by regularly checking your credit reports for errors and monitoring your score. Services like Credit Karma or Credit Sesame offer free access to your credit scores and reports, which can help you identify areas for improvement. For a more in-depth look at the specific scores used by lenders, a service like myFICO can provide additional insight.

Paying bills on time, keeping credit card balances low, and avoiding unnecessary new credit applications can all help improve your score over time.

A Step-by-Step Guide to Filing a Home or Auto Insurance Claim

No one wants to file an insurance claim, but knowing the process can make a stressful situation much more manageable. Whether it’s a fender bender or a burst pipe in your home, following these steps will help ensure a smoother process.

Ensure Safety and Document the Scene: Your first priority is safety. In a car accident, move to a safe location if possible and check for injuries. For a home incident, like a fire or major leak, evacuate everyone. Once it’s safe, document everything with photos and videos from multiple angles. Get names and contact information of any witnesses.
Contact Your Insurer Promptly: Call your insurance company or agent as soon as possible. Most insurers have 24/7 claims hotlines. Be prepared to provide your policy number and a detailed description of what happened.
Fill Out the Claim Forms: Your insurer will send you claim forms. Fill them out accurately and completely. Be honest and stick to the facts. Exaggerating the damage can be considered insurance fraud, which has serious consequences.
Prepare for the Adjuster’s Visit: The insurance company will assign a claims adjuster to your case. The adjuster’s job is to investigate the loss and determine the amount the insurer will pay. Be ready for their visit with your documentation, photos, and any repair estimates you’ve gathered.
Keep Detailed Records: Maintain a log of every conversation you have with your insurance company, including the date, time, and name of the person you spoke with. Keep copies of all emails, letters, and receipts for any temporary repairs or expenses, like a hotel stay if your home is uninhabitable.

Frequently Asked Questions (FAQ)

Is it really cheaper to bundle home and auto insurance?

For most people, the answer is a resounding yes. Insurance companies offer significant multi-policy discounts, often between 10% and 25%, to customers who purchase both home and auto coverage from them. This is because bundled customers are more loyal and tend to have a lower risk profile. However, it’s not a universal rule.

In some situations, particularly if you have a high-risk profile in one area (e.g., a poor driving record), you might find better overall pricing by purchasing policies from two separate, specialized companies. The only way to be certain is to compare both bundled and individual quotes.

What is the 80% rule in homeowners insurance?

The 80% rule is a guideline many insurers use to determine how they will reimburse you for a claim. To receive the full replacement cost for a damaged part of your home (like the roof), you must have your home insured for at least 80% of its total replacement value. If your coverage falls below this threshold, the insurer may only pay a depreciated amount, leaving you to cover the difference. It’s crucial to regularly review your dwelling coverage to ensure it keeps up with inflation and rising construction costs.

Does my credit score affect my insurance rates?

Yes, in most states, your credit history plays a significant role in determining your insurance premiums. Insurers use a credit-based insurance score, which is calculated from information in your credit report. Decades of data show a strong correlation between this score and the likelihood of filing a claim. A higher score generally indicates lower risk, leading to more favorable rates.

This makes managing your credit an important part of controlling your insurance costs.

What is the best insurance company to bundle car and home?

There is no single “best” company for everyone, as the right choice depends on your individual needs, location, and risk profile. Companies like State Farm, Allstate, Progressive, and USAA (for military members and their families) are well-known for their bundling options and often receive high customer satisfaction ratings. The best approach is to get quotes from several top-rated companies and compare their coverage options, discounts, and customer service records to find the perfect fit for you.

Final Thoughts

Securing the right protection for your home and vehicle is a cornerstone of financial health. By taking a strategic approach to getting a home and auto insurance quote, you can do more than just fulfill a legal requirement—you can find comprehensive coverage that fits your budget. The key is to be an informed consumer. Understand the basics of your coverage, know what factors drive your rates, and never stop looking for a better deal.

Remember to compare quotes from multiple providers regularly, paying close attention to both price and the quality of coverage. Don’t be afraid to ask about discounts, and take proactive steps like improving your credit score and home safety to lower your premiums. With a little effort, you can ensure your most valuable assets are protected without overpaying.