Many insurance companies offer healthy discounts for customers who take out both homeowners and car insurance policies. If you rent, you may assume you're not eligible for one of these "bundling" discounts.
But you can get a healthy rate reduction for taking out renters insurance and auto insurance from the same provider. Bundling renters and auto policies could save as much as $650 a year off an average-priced car insurance policy, according to our analysis.
That's more than enough to cover the full cost of almost any renters insurance policy.
How much can you save bundling renters and auto insurance?
Auto insurance costs have been rising lately, but bundling your renters insurance could deliver a discount.
"You'll see discounts of anywhere between 5% and 25% depending on the company, and that's usually on both policies," Leslie Kasperowicz, executive editor at Insurance.com, told CNBC Select. "Often the discount is a little higher on the auto policy than it is on the renters policy."
The average full-coverage auto insurance policy in June 2026 is $2,564 per year, according to data from U.S. News & World Report.
At that rate, a bundling discount of just 10% would yield savings of slightly more than $256 per year. A 15% discount would amount to about $385 in savings, while a 25% discount would mean about $640 in savings on an average-priced policy.
Considering the cost of renters coverage, these discounts are significant.
"Renters insurance is actually really cheap," Kasperowicz said.
Insurance.com's most recent numbers indicate that the average policy is about $24 per month, or $288 per year.
"You might see such a savings that you're almost not paying any more for the renter's insurance policy than you were for just auto," Kasperowicz added.
Pros and cons of bundling renters and auto insurance
If you're considering getting an insurance bundle, here's what you need to know:
- Bundling discount: With discounts between 5% and 25%, your savings could be significant — possibly enough to offset the entire cost of your renters policy.
- Easier to manage: Working with one company means having one account. "You get one bill and one renewal date," Kasperowicz said.
- May save on deductibles: If your car window is smashed and your laptop was stolen, you'd typically have to pay two separate deductibles — one for your renters insurance to cover your personal property and one with your auto policy to repair the window. Some companies, including Progressive, let policyholders pay a single deductible when they file two claims at once.
- You may not get the best price: Every insurance company considers your information and calculates prices differently. You may get a great rate on renters insurance from a company, but higher premiums on car insurance. This is especially true for those with negative marks on their driving records.
- You may be less likely to shop around: People who bundle their insurance policies stay with that insurer for nearly a year-and-a-half longer, according to J.D. Power data. Experts recommend comparison shopping every six months to a year for any type of insurance to make sure you're still getting the best price.
- Not every insurer offers bundling discounts: If you want a specific feature, the insurer that offers it might not offer a bundling discount on renters and car insurance. They might not even offer both kinds of policies. Getting two separate policies might be the best move.
Should I bundle renters and auto insurance?
"A lot of times bundling is the best deal, but it's not always," Kasperowicz says. "I always tell people, get quotes for auto and renters insurance separately and get quotes for them together."
As you gather quotes, keep an eye out for renters and auto insurance policies with significantly lower prices.
Drivers with tickets or accidents on their record, or who have filed several renters insurance claims, may find that bundling isn't the best move, Kasperowicz added.
"It may be a case where your particular profile either as a driver or as a renter means one particular company charges you a lot more for one policy than another company would," she added. "Sometimes getting two separate policies from two separate companies is cheaper."
How to bundle renters and auto insurance
If you've determined that bundling is the best move, it's pretty simple.
1. Gather the information you'll need. For auto insurance, this includes your driver's license number and your car's VIN number, make, model and mileage. For renters insurance, you'll need details about the size, nature and location of your home and an estimate of the total value of your belongings.
2. Get several quotes. To help you get started, CNBC Select combed through companies that offer both renters and car insurance and have bundling discounts. We chose Erie is a top choice for customer satisfaction.
Erie Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Erie Insurance offers auto insurance for many different situations and affordable premiums. Several different coverages allow you to customize your policy.
Terms apply.
Erie Renters Insurance
Availability
Erie renters insurance is available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, D.C.
Coverage limits
Not disclosed
Policy highlights
Policies cover personal property damage, personal liability, loss of use and medical expenses for others. Replacement cost coverage is standard
Add-ons
identity theft, home-sharing, sewer and drain backup, high-end items
We also highlighted Lemonade for those who don't drive much and want to bundle renters insurance.
Lemonade Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you're sued for liability and if your car gets stolen
Terms apply.
Lemonade Renters Insurance
Availability
Lemonade renters insurance is available in 28 states and Washington, D.C.
Coverage limits
Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000
Deductible
$250 to $2,500
Add-ons
Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss
Terms apply.
As you shop, make sure you're looking at the same limits for liability and personal property coverage and the same deductible rates across the different options.
Keep in mind that the largest discount might not mean the most savings for you. If an insurer quotes you a higher base price, 25% off might still be more than a competitor's rate with a smaller discount.
Once you've made your choice, apply for both policies. Bundling discounts often apply automatically, but make sure the rate reduction is added.
Bundling auto and renters insurance
Is bundling renters and auto insurance always cheaper?
While bundling renters and auto insurance often involves a discount, it's not always cheaper. Look at the dollar amount you'd be paying after the reduction, rather than just the discount amount.
Do I have to get renters insurance?
Renters insurance isn't required by law, but it may be required as a condition of your lease. Even if it's not, it can protect you if your belongings are damaged, if you're held liable for unintended damages to someone else or if your rented home becomes uninhabitable due to damages.
What factors affect renters insurance rates?
The price you'll pay for renters insurance can be influenced by things like your claims history, where you live, and the deductible amount you've chosen. In some states, your credit-based insurance score can also be a factor.
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Meet our experts
At CNBC Select, we work with experts with specialized knowledge and authority. For this story, we interviewed Leslie Kasperowicz, an executive editor at Insurance.com since 2022. She specializes in home and auto insurance.
Prior to her current role, Leslie had two decades of experience in the insurance industry as a customer service representative at Farmers Insurance.
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every insurance story is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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