Insurance bundling is possible (and useful) even if you don't own a home

This article is sponsored by Farmers Insurance.

If you're a homeowner with a car, you've probably considered getting insurance coverage for both from the same provider. According to 2026 data from J.D. Power, two-thirds of auto insurance customers who own their home bundle their policies with the same carrier.

But bundling can benefit all kinds of consumers, says Greg Pannhausen, head of property product at Farmers Insurance.

"People commonly think of bundling home and auto insurance because that's what's advertised on TV," Pannhausen told CNBC Select. "But it also applies to renters insurance, motorcycles, boats, RVs — even life insurance. It's any insurable assets that can be bundled together with one carrier."

The most obvious benefit of bundling is a multi-policy discount: Eligible Farmers customers who bundle home and auto insurance can get roughly 10% off both policies in most states, according to Pannhausen. 

"It depends on which policies you're talking about — with a renters and auto policy, it may be more like 7%," he said. "But if you add life insurance to that, that could be an extra 2%. And if you have other policies, like an RV, you could get another point or two. It all depends on the product and state you live in."

The savings isn't the only benefit of bundling, he added. Having multiple policies with the same insurer can simplify payments, policy management, claims and more.

"The real value is about bringing things all together under one roof," Pannhausen said. "So, you're not going from insurer to insurer. Bundling can even address gaps in coverage terms or limits by enabling you to get an excess liability or umbrella policy."

On some policy types, bundling can also mean benefiting from an aggregate deductible. For example, if a hailstorm or fire damages both your house and your car, and you'd bundled home and auto insurance, you may only be asked to pay one deductible for the two claims.

"Depending on the policy type, Farmers could waive the lower of the two for some policy types," Pannhausen said. "Typically, it's the auto deductible."

If you had car insurance with one company and homeowners insurance with another, you would generally have to pay both deductibles. Beyond the additional expense, Pannhausen said, there can also be a psychological cost.

"If you've dealt with a natural disaster, and you have to explain that traumatic loss over and over, it creates this unnecessary bad feeling," he said. "And also, it takes all this extra time. I'd want to speak to one insurer and be like, 'My home and car were damaged. Can you help me?' Even if I still need to work with separate home and auto adjusters, I shouldn't have to start from scratch each time. Because my time is important."

"Savvy consumers have bundling on their radars when shopping for insurance, according to " Pannhausen said. Simply comparing premiums side by side can be misleading.

"Maybe you could save a little bit going with two different providers," he said. "But the issues you'll have to deal with — different accounts, different bills, different agents — really make a difference. For some people, it's worth saving a dollar. For others, though, it wouldn't be worth saving $100."

"It's peace of mind, really," he added. "Which is even more important if something goes wrong."

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