- Cheapest home and auto bundles in Michigan
- The company offering the cheapest home and auto bundle in Michigan
- Biggest home and auto bundle discounts in Michigan
- How do home and auto bundles affect car insurance rates in Michigan?
- What are the best home and auto insurance companies in Michigan?
- 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 Michigan?
- Methodology
- FAQs: Home and auto insurance bundling
Cheapest home and auto bundles in Michigan
The price you pay with a home and auto bundle depends on the base prices for the home and auto policies as well as 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 Michigan are from Auto-Owners, followed by Automobile Club MI (AAA).
| Company | Home premium | Auto premium | Bundle premium | Without bundle premium |
|---|---|---|---|---|
| Auto-Owners | $541 | $3,533 | $3,651 | $4,074 |
| Automobile Club MI (AAA) | $1,356 | $3,611 | $4,184 | $4,967 |
| Frankenmuth Insurance | $2,197 | $3,798 | $5,213 | $5,995 |
| State Farm | $2,138 | $4,637 | $5,323 | $6,775 |
| Farmers | $3,890 | $8,977 | $10,235 | $12,867 |
| Michigan Farm Bureau | $9,932 | $4,100 | $12,021 | $14,032 |
| The Hanover | $4,188 | $12,400 | $13,531 | $16,588 |
The company offering the cheapest home and auto bundle in Michigan
Auto-Owners
Our take: Auto-Owners car insurance customers rank the company well for high renewal rates and affordable monthly premiums. Its home insurance customers generally score the company well for customer service and discounts. Auto-Owners works solely through agents and doesn’t offer online quoting, but offers many other online services.
Biggest home and auto bundle discounts in Michigan
With an average of 21%, the largest discount for bundling home and auto insurance can be found at State Farm. In contrast, at only 10%, the smallest multi-policy discount of the companies reviewed belongs to Auto-Owners.
| Company | Home and auto bundle discount |
|---|---|
| State Farm | 21% |
| Farmers | 20% |
| The Hanover | 18% |
| Automobile Club MI (AAA) | 16% |
| Michigan Farm Bureau | 14% |
| Frankenmuth Insurance | 13% |
| Auto-Owners | 10% |
How do home and auto bundles affect car insurance rates in Michigan?
The table below shows Michigan auto insurance rates before and after applying a bundling discount. The most affordable rate after the multi-policy discount belongs to Automobile Club MI (AAA) at $3,002. The largest discount on auto is offered by Farmers at 20%.
| Company | Auto premium before bundling | Auto premium after bundling | $ difference after bundling | % difference after bundling |
|---|---|---|---|---|
| Automobile Club MI (AAA) | $3,611 | $3,002 | $608 | 17% |
| Auto-Owners | $3,533 | $3,179 | $353 | 10% |
| Frankenmuth Insurance | $3,798 | $3,346 | $452 | 12% |
| Michigan Farm Bureau | $4,100 | $3,567 | $533 | 13% |
| State Farm | $4,637 | $3,877 | $761 | 16% |
| Farmers | $8,977 | $7,185 | $1,792 | 20% |
| The Hanover | $12,400 | $10,464 | $1,936 | 16% |
What are the best home and auto insurance companies in Michigan?
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 Michigan 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 | $426 | 5.00 |
| Frankenmuth Insurance | B++ | 0.03 | $1,745 | 4.81 |
| Michigan Farm Bureau | A- | 0.25 | $6,265 | 4.78 |
| Automobile Club MI (AAA) | A | 0.29 | $1,498 | 4.65 |
| Farmers | A | 0.54 | $2,824 | 3.99 |
| The Hanover | A | 0.50 | $3,286 | 3.95 |
| State Farm | A++ | 0.95 | $2,036 | 3.74 |
| Company | AM Best | JD Power by state | NAIC | Average annual premium | Insurance.com score |
|---|---|---|---|---|---|
| Auto-Owners | A++ | 833 | 0.50 | $2,080 | 3.82 |
| Travelers | A++ | 806 | 0.49 | $1,355 | 3.77 |
| Geico | A++ | 831 | 0.91 | $1,553 | 3.37 |
| Progressive | A+ | 816 | 0.65 | $2,069 | 3.19 |
| State Farm | A++ | 837 | 0.70 | $3,601 | 2.79 |
| Automobile Club MI (AAA) | A | 786 | 0.77 | $2,526 | 2.46 |
How does bundling home and car insurance work?
The concept of bundling is pretty straightforward. 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 the same for both policies. Each insurer has its own discount formulas. Companies may offer a more substantial discount on one than the other.
The pros and cons of home and auto insurance bundles
The biggest benefit of bundling your home and auto insurance is a decreased premium.
But keep in mind that you won't always save money bundling. You could find a provider with a low price on one of the two policies, which could result in better savings than a bundle. Here’s how that works:
- If you currently pay $1,000 for car insurance from one insurer and $1,200 for home insurance from another, that's a total of $2,200.
- But let's say you decide to buy your home insurance from your auto insurer. The cost for the new home insurance policy is $1,500, or $300 more than your current cost.
- Your total rate under the bundle would be $2,500, a $300 increase.
- That means you'd need a bundle discount of at least $400 or so to lower the total bundle rate enough to save money compared to the price you currently pay for separate policies.
That's why you should compare home and auto insurance bundle quotes to what you're paying for separate policies. Rates on bundles aren't always lower.
Should you bundle home and auto insurance in Michigan?
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 Michigan 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.
What information do you need to bundle your policies?
To bundle your policies you will need all of the details for both the cars and the home you want to insure. That includes VINs, driver information and details about the home. Your current home and auto policies will list this information for easy reference.
Which insurance companies bundle home and auto insurance?
Almost every insurance company offers a bundling discount, often called a multi-policy discount. Multi-policy discounts aren't just for auto and home. They often include other home insurance policies like renters and condo, as well as motorcycle insurance and in some cases life, RV, boat, and others.
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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