- Cheapest home and auto bundles in Alabama
- The companies offering the cheapest home and auto bundles in Alabama
- Biggest home and auto bundle discounts in Alabama
- How do home and auto bundles affect car insurance rates in Alabama?
- What are the best home and auto insurance companies in Alabama?
- How does bundling home and car insurance work?
- The pros and cons of home and auto insurance bundles
- Should you bundle home and auto insurance in Alabama?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Alabama
The price you pay with a home and auto bundle depends on the base prices for the home and auto policies in addition to the amount discounted on each policy. The table below shows the average rates for home insurance and auto insurance and how much the total premium is with and without the bundling discount.
The cheapest car and home bundles in Alabama are from Allstate, followed by State Farm.
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| Allstate | $1,151 | $1,884 | $2,543 | $3,035 |
| State Farm | $2,786 | $1,787 | $3,328 | $4,573 |
| Farmers | $2,360 | $2,308 | $3,853 | $4,668 |
| Nationwide | $4,096 | $1,167 | $4,243 | $5,263 |
| Country Financial | $3,764 | $1,660 | $4,275 | $5,424 |
| Auto-Owners | $2,934 | $2,166 | $4,481 | $5,100 |
The companies offering the cheapest home and auto bundles in Alabama
Allstate
Our take: Allstate auto customers give the company high scores for ease of service and for its expansive policy offerings. Its homeowners rates are lower than most major competitors and the majority of its home insurance customers give it high marks for customer satisfaction and claims handling. Allstate is the fourth-largest property and casualty insurance company in the U.S.
State Farm
Our take: State Farm topped the list of auto insurance companies in a recent ranking, with customers giving it extremely high satisfaction scores. The company is also the top pick for home insurance, with customers giving it high marks for customer satisfaction, ease of service and for its various policy offerings. State Farm is the biggest property and casualty insurance company in the nation.
Biggest home and auto bundle discounts in Alabama
With an average of 27%, the largest discount for bundling home and auto insurance can be found at State Farm. In contrast, at only 12%, the smallest multi-policy discount of the companies reviewed belongs to Auto-Owners.
| Company | Home and auto bundle discount |
|---|---|
| State Farm | 27% |
| Country Financial | 21% |
| Nationwide | 19% |
| Farmers | 17% |
| Allstate | 16% |
| Auto-Owners | 12% |
How do home and auto bundles affect car insurance rates in Alabama?
The table below shows Alabama auto insurance rates before and after applying a bundling discount. The most affordable rate after the multi-policy discount belongs to Nationwide at $1,043. The greatest discount on auto is offered by Farmers at 24%.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| Nationwide | $1,167 | $1,043 | $124 | 11% |
| Country Financial | $1,660 | $1,469 | $191 | 11% |
| State Farm | $1,787 | $1,510 | $277 | 15% |
| Allstate | $1,884 | $1,592 | $292 | 16% |
| Farmers | $2,308 | $1,763 | $545 | 24% |
| Auto-Owners | $2,166 | $1,906 | $260 | 12% |
What are the best home and auto insurance companies in Alabama?
When shopping for the right company for your home and auto insurance, it’s important to consider more than just bundling. You want a company that has a solid reputation as well as great rates. Below are the best home and auto insurance companies in Alabama overall based on our analysis of rates, financial stability and customer complaints.
| Company | AM Best | NAIC | Average annual premium | Insurance.com score |
|---|---|---|---|---|
| Auto-Owners | A++ | 0.33 | $2,868 | 5.00 |
| Country Financial | A+ | 0.26 | $3,567 | 4.47 |
| Allstate | A+ | 0.90 | $2,134 | 4.39 |
| Farmers | A | 0.54 | $3,231 | 4.09 |
| State Farm | A++ | 0.95 | $3,137 | 3.51 |
| Nationwide | A+ | 0.87 | $3,465 | 3.30 |
| Company | AM Best | JD Power by state | NAIC | Average annual premium | Insurance.com score |
|---|---|---|---|---|---|
| Country Financial | A+ | 828 | 0.34 | $1,694 | 3.44 |
| Travelers | A++ | 851 | 0.49 | $1,428 | 3.34 |
| Auto-Owners | A++ | 859 | 0.50 | $2,134 | 3.27 |
| Nationwide | A+ | 818 | 0.64 | $1,345 | 3.14 |
| State Farm | A++ | 807 | 0.70 | $1,790 | 3.06 |
| Geico | A++ | 847 | 0.91 | $1,625 | 3.03 |
| Allstate | A+ | 816 | 0.65 | $2,178 | 2.55 |
| Progressive | A+ | 828 | 0.65 | $2,402 | 2.37 |
| Farmers | A | 857 | 0.80 | $2,542 | 2.15 |
How does bundling home and car insurance work?
The concept of bundling is pretty basic. You buy more than one type of insurance from the same company and, in exchange for the increased business, the insurance company gives you a discount. And there’s an additional benefit for the insurer for offering bundles: Customers who bundle are more likely to renew their policies.
You typically get discounts on both car insurance and home insurance when you bundle coverage. The discount isn’t equal for both policies. Each provider has its own discount formulas. Companies may offer a greater discount on one than the other.
The pros and cons of home and auto insurance bundles
The biggest benefit of bundling your home and car insurance is a cheaper premium.
But keep in mind that you don't always save money by bundling. You could find a company with a low enough price on one of the two policies to result in more affordable overall rates than a bundle elsewhere. Here’s how that works:
- If you pay $1,000 for car insurance from one provider currently and $1,200 for home insurance from another, the total is $2,200.
- Let's say, however, you decide to get your home insurance from your car insurance company. The price is $1,500 for the new home insurance policy, $300 more than what you pay right now.
- The new combined premium would mean a $300 increase, totaling $2,500.
- You would need a bundling discount of $400 or so, at minimum, to decrease the total bundle rate by enough money to save when compared to the price you currently pay for the separate policies.
Bundled rates aren't always cheaper in absolute terms. This is why you should carefully compare what you pay for separate policies now to quotes on home and car insurance bundles.
Should you bundle home and auto insurance in Alabama?
Prior to signing up for an auto and home bundle, it’s important to shop around. Bundling your car and homeowners insurance has many advantages; you only have to deal with a single company and with a single bill and you typically get a discount on both policies. However bundling isn’t always the best deal.
Some companies have cheap car insurance rates but less competitive home insurance rates, and vice versa. You might pay less overall by choosing two different companies for your insurance.
Shop around and evaluate Alabama car insurance rates on an individual basis and with a bundling discount to make sure you’re getting the best deal before you buy.
Methodology
In the spring of 2023, Insurance.com analyzed rate and discount data from Quadrant Data Services. The rates, from 2022, are the most recent available to Insurance.com and are based on a 40-year-old male driver with a 12-mile daily commute, good credit and a clean driving history. Rates were fielded for a full-coverage policy (100/300/100 with a $500 collision and comprehensive deductible). Homeowners insurance rates are based on $300,000 in dwelling coverage with $300,000 in liability and a $1,000 deductible.
FAQs: Home and auto insurance bundling
Below are answers to common questions about bundling home and auto bundles and other multi-policy discounts that can save you money on your insurance.
How do I cancel my insurance and bundle with another company?
You should have your new policy ready to go first, as you want to avoid a lapse in coverage. Once you have the new policy start date, give your car or homeowners insurance company at least a 30-day notice of your cancellation. You can set the start date of your new policy for the day your old policy ends. By doing so, you'll ensure that your former company will stop billing you by the time your new policy is in effect. You'll also prevent any coverage gaps between the canceled policy and the new one.
Is there a limit on how many policies can be bundled?
Typically, you can purchase as many insurance policies as you want from the same company. However, that doesn’t mean you can take advantage of a bundling discount with every policy you buy. There may be a limit on the number of policies you can bundle with one company. For instance, you might only qualify for a bundling discount on the three most expensive policies. You should speak with an agent from your insurance company to learn more about the possible restrictions.
What type of insurance policies can I bundle?
Multi-policy discounts can also apply to other types of insurance policies that you buy from the same insurance company. Depending upon the insurer, you may also be able to bundle these types of insurance policies:
- Condo
- Renters
- Motorcycle
- RV
- Life
Some auto insurance companies don't write homeowners insurance, but some may align themselves with a home insurer to offer a discount. Ask your agent or customer service representative to see if you can bundle multiple insurance policies.
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