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Best Home and Auto Insurance 949823

Bundling is a common practice in the insurance industry. It involves purchasing multiple insurance policies, like homeowners and auto, from the same insurance company. Also known as a multi-policy or multi-line discount, bundles can be one of the best ways to save on insurance premiums, with some companies promising anywhere from 10% to 25% in savings. This can also simplify bookkeeping habits as some companies will use one billing account for all policies and/or have online account features that allow you to pay all policies in one place. In this article, we’ll discuss the results of our Best Home and Auto Insurance Bundles of 2022 rating.

Our Best Home and Auto Insurance Bundles Rating

Compare the Best Homeowners and Auto Insurance Bundles of 2022

Best Home and Auto Insurance Bundles of 2022

Best Home and Auto Insurance Bundles in Detail

Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.

USAA

Pros:

No. 1 company in our homeowners, car insurance ratings

Homeowners policies include personal property replacement cost

Cheapest auto insurance rates on average among companies in our survey

Cons:

Only available to members of the U.S. military, veterans, and families

Our top-rated insurance company for bundles, USAA is No. 1 in both our Best Car Insurance Companies of 2022 and our Cheapest Car Insurance Companies of 2022 ratings. It is also No. 2 in Best Homeowners Insurance Companies of 2022 rating. USAA is based in San Antonio, Texas, and its policies and services are only available to U.S. military members, veterans, and their families. With a wide portfolio of insurance products, which includes policies for homeowners, renters, autos, life, health, pets, small businesses, and personal property, the company has earned an AM Best rating of A++ (Superior) for financial strength.

USAA earns high marks for excellent customer service, claims handling, and customer loyalty for its auto insurance product. For homeowners, the company offers a standard policy that includes replacement cost coverage for personal property and uniform coverage for active duty and deployed military members. Policyholders can bundle these two policies – or bundle an auto and renters policy together – and earn up to 10% in savings.

For more information read our USAA homeowners and car insurance reviews.

State Farm

Pros:

Cheapest rates on average for home insurance, according to our analysis

Local agents available nationwide

Available in all states and Washington, D.C.

Cons:

Fewer home insurance discounts than other companies in our ratings

Few extras included with standard homeowners coverage

State Farm takes the No. 3 spot in our rating of the Best Home and Auto Insurance Bundles of 2022.

On the auto insurance side, State Farm offers multiple coverage options, including comprehensive, collision, and liability coverage, among others. Depending on what you can afford and what you need in terms of coverage, State Farm allows you to set your own deductible and coverages, making it a customizable choice. Discounts include safe driver and safe vehicle savings and multiple auto savings, for having multiple vehicles insured through State Farm.

For homeowners insurance, State Farm offers a similar kind of customizable plan, helping you to determine how much and what kind of coverage your home needs. Discounts include home security discounts as well as roofing discounts. However, the easiest way to save is to bundle your home and auto policies with State Farm.

For the full reviews, read our State Farm homeowners and car insurance page.

Pros:

Ordinance or law coverage standard with home insurance policies

Wide range of discounts for both auto and home insurance

Cons:

Replacement cost is not standard

Coverage not available in all states

Rated as No. 3 in our Best Home and Auto Insurance Bundles of 2022, Nationwide is No. 2 in our Cheapest Homeowners Insurance Companies of 2022, No. 4 in our Cheapest Car Insurance Companies of 2022, and tied for No. 3 with Farmers and Geico in our Best Car Insurance Companies of 2022 ratings. Nationwide writes policies through licensed agents in most states – state availability differs for its auto and home insurance products, but Alaska, Hawaii, Louisiana, and Massachusetts are excluded from coverage for both lines of business. Homeowners insurance is also not available in New Jersey, Florida, and New Mexico. Based in Columbus, Ohio, Nationwide has a financial strength rating of A+ (Superior) with AM Best.

Nationwide offers standard home and auto insurance policies with several options and discounts for customization. Its home policies automatically include ordinance or law coverage, and policyholders can add replacement cost coverage for their home and personal property and Better Roof Replacement materials. They also have the option to include accident forgiveness and vanishing deductibles on their auto insurance policies. Nationwide offers a bundling discount of up to 20% for customers who purchase auto and home insurance together. The company also has a variety of other bundling options, including auto and renters, auto and boat, renters and motorcycle, and auto, home, and life insurance.

For the full reviews, read our Nationwide homeowners and pros.

Claim and accident forgiveness available for Farmers Smart Plan policies

Three tiers of home insurance policies offered

Cons:

Not available in all states

Auto insurance premiums higher than national averages

One of the largest insurance companies in the U.S., Los Angeles, California-based Farmers Insurance is our No. 4 choice for Best Home and Auto Insurance Bundles, No. 3 for Cheapest Home Insurance Companies, and tied for No. 3 with Nationwide and Geico for Best Car Insurance Companies of 2022. Farmers has mid-to-lower ratings in our other analyses, including Best Home Insurance Companies and Cheapest Car Insurance Companies of 2022. Its auto insurance premiums run higher than the national averages in all the sample demographics we reviewed. The company offers a broad range of policies and discounts and is available in all states except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia, and Washington, D.C. Home insurance is also not available in South Carolina. Farmers has earned an A rating (Excellent) for financial security with AM Best.

Although Farmers offers standard and optional coverages similar to other insurers, it has three tiers of its standard Smart Plan home insurance policies – Standard, Enhanced, and Premier – with different coverage levels and targeted policyholders. Policyholders who purchase auto and home policies under the Smart Plan program have additional features to choose from, including accident and claim forgiveness to help mitigate premium increases after filing initial claims with the company. With several options for bundling coverages, including home, auto, life, and umbrella policies, insureds can obtain discounts of up to 20%.

For the full reviews, read our Farmers homeowners and car insurance page.

Allstate

Pros:

Large variety of coverages, including green improvement reimbursement and home-sharing coverage

Available in all states and Washington, D.C.

Cons:

Some of the most expensive rates in our ratings

Replacement cost not standard

Allstate is tied for No. 5 with American Family in our Best Home and Auto Insurance Bundles of 2022 rating. However, it is amongst the lower-rated companies in our other reviews – it’s No. 9 in both our Best Homeowners Insurance Companies and Cheapest Car Insurance Companies of 2022. It also has the second-highest monthly premium for the sample home policy we analyzed. Headquartered in Northbrook, Illinois, Allstate has almost $51 billion in revenue and about 138,300 employees and agents according to its 2021 year-end report. The company writes insurance in all 50 states in addition to Washington, D.C. AM Best has given Allstate an A+ (Superior) rating for financial strength.

Along with its standard auto and home insurance policies, Allstate offers several optional coverages, including green improvement reimbursement to replace an item with an energy-efficient one after a covered loss, HostAdvantage to provide theft and property damage coverage for those who rent out a room or their entire home, and replacement cost coverage to exclude depreciation from personal property valuation. Allstate has different policy bundling combinations available: home and auto, renters and auto, and motorcycle and renters. Allstate’s bundling discount is on the higher end of the spectrum, promising savings up to 25% for purchasing home and auto insurance together.

For the full reviews, read our Allstate homeowners and car insurance page.

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American Family

Pros:

Wide variety of standard and optional coverages

Local agents available

Cons:

Replacement coverage not standard in all homeowners packages

Only available in 19 states

Tied for No. 5 with Allstate in our Best Home and Auto Insurance Bundles of 2022 rating, American Family is in the middle of our various company analyses. It is, however, No. 10 in our Best Car Insurance Companies of 2022 rating and has the highest sample premium for home insurance. American Family has its headquarters in Madison, Wisconsin, and only offers its auto and home insurance products in 19 states through local agents. The company has a financial security rating of A (Excellent) from AM Best.

American Family has a standard auto insurance policy, and its home insurance is offered in three protection packages: Economy, Traditional, and Premier. Personal property replacement cost coverage is automatically included with the latter two. Its optional homeowners coverages include equipment breakdown, matching siding protection, hidden water damage, and nursing and assisted living coverage. American Family offers insurance bundles for combining home and auto, renters and auto, or life and auto coverages. Bundling discounts with American Family range from 5% for auto and renters packages to 23% for auto and home packages.

For the full reviews, read our American Family homeowners and auto insurance page.

How To Find the Right Home and Auto Insurance Bundle

The right home and car insurance bundle for you will include all of the required insurance for your state and assets. It is important for both the homeowners policy and auto policy to cover everything required by your state and your lender. They should also provide enough coverage to meet your individual needs. Below we will explore how to find the best individual homeowners and auto policies for you.

For more information read How to Bundle Home and Auto Insurance.
How To Find the Best Homeowners Insurance Company

With so many coverage options and insurance companies to choose from, finding the best homeowners policy can seem overwhelming at first. That’s especially true with so much at stake, including your home and everything in it.

By breaking the process down into simple steps, we’ve made it easier to select the best, affordable homeowners insurance company, policy, and coverage for your needs.

First, determine how much coverage you need to cover the cost of rebuilding your home in the event of a total loss. Do the same for fences, pools, and any outbuildings detached from your home such as a garage or shed. You can estimate rebuilding costs by multiplying the square footage of your home by local building costs. A local insurance agent, real estate professional, or appraiser should be able to help with this.

Next, you’ll need to estimate the cost to replace the furniture and possessions in your home and on your property. Take the time to be thorough, and remember to include valuables and collectibles that may be tucked away in the attic or basement. Don’t forget to include musical instruments, sporting equipment, and outside items such as a barbecue grill.

A good way to have a record of personal items is to go through your home and make a video of each room and its contents, making updates from time to time to include newer purchases. Downloadable apps are available to help you with this process. Once you’ve completed your video record, find a secure place to store it remotely.

When estimating the value of items such as a washing machine or living room set, remember to use current replacement costs rather than what you paid. Due to inflation and other factors, replacing an appliance that’s just a couple of years old might cost considerably more than what you paid. The Insurance Information Institute (III) website is an excellent resource for more information on how to make an inventory and other tips.

Once you have an idea of how much coverage you need, look for a reputable insurance company that offers coverage in your area, has competitive rates, and is financially solid. Our ratings are a good source for this information. Also make sure to read professional and consumer reviews of any company you’re considering, and choose one with 24/7 access to help through either a company representative, website, or a local agent.

Finally, make sure to take advantage of any discounts you can, like bundling your homeowners insurance with an auto policy or other coverage or having security equipment such as smoke detectors or sprinkler systems installed. A good insurance agent or company website can help with this.

For more information on purchasing a homeowners insurance policy, read How to Buy Homeowners Insurance.
How To Find the Best Car Insurance Company

Shopping around for the right car insurance company can help you save money and find coverage that best suits your needs. If you’re looking for a new insurer, one of the first things to do is determine the type and amount of coverage you need.

Most states require drivers to carry minimum liability insurance. If you’re at fault for an accident, this type of insurance will cover any bodily injuries or property damage sustained by the other driver or their passengers. Depending on where you live, you may need to purchase uninsured/underinsured motorist insurance (UM/UIM), personal injury protection (PIP), or medical payment coverage (MedPay).

In addition to state requirements, keep any lender requirements in mind. If you finance your car, you may need to purchase additional types of insurance, like collision and comprehensive coverage.

Once you meet any state or lender requirements, you can choose to add other types of coverage to your policy. Common options include the following:

Gap insurance
Accident forgiveness coverage
New car reimbursement coverage
Roadside assistance
Rental reimbursement coverage
Rideshare insurance
Glass coverage
Custom-equipment coverage
Original equipment coverage

As you review auto insurance companies, verify that they offer the coverage options you want. Not all coverage options may be available where you live.
After you determine what type and amount of coverage you need, compare insurers by reading consumer and professional reviews and checking out their website. Once you narrow your list down to a few insurers, you can get free quotes to determine which company offers the most affordable policy options.

For more information on car insurance, read our guide How Much Car Insurance Do I Need? and The Best Car Insurance Companies of 2022.

FAQ

What is a home and auto insurance bundle?

A home and auto bundle means buying a combination of insurance coverage policies for both car and home through one overarching insurance provider. With many insurers, this practice can lead to a multi-policy discount. Some insurance companies offer similar discounts for bundling renters insurance with a car policy.
Should I bundle home and auto insurance?

Many leading insurers promise savings of hundreds of dollars if you bundle your home and auto insurance policies. This is true in many, but not all, cases, according to the Insurance Information Institute (III). If you drive an expensive sports car or own a home in a high-risk area, for example, you may find that combined policies from one company are more expensive than separate auto and home insurance coverage from two different insurers.

What is homeowners insurance?

Homeowners insurance provides some financial protection when rebuilding, repairing, or replacing your home and belongings after covered events like weather damage, fire, smoke, vandalism, theft, or damage from things like falling trees. It can also cover legal and medical fees in case of an accident, such as someone being injured on your property.

If you live in an area that is at high risk of flooding you can also purchase a flood insurance policy. Most homeowners insurance policies do not cover damages resulting from flooding. More information on flood insurance can be found on the National Flood Insurance Program’s (NFIP) website. If you live in a region prone to seismic activity, you may be able to purchase a separate earthquake insurance policy or add coverage to your homeowners policy, depending on the company.

For more information on homeowners insurance, read our guides How Does Homeowners Insurance Work? and What Does Homeowners Insurance Cover?

Do I need homeowners insurance?

Unlike car insurance, homeowners insurance is not generally required by law. When making a major purchase on a home, many people will opt for a mortgage that is backed by a lender such as a bank or credit union. In this case, it is the lender that requires homeowners insurance – or sometimes the condo association or homeowners’ association for your neighborhood.
How Much Does Homeowners Insurance Cost?

Our study found homeowners insurance to cost between $111 and $188 per month. Premiums for a homeowners insurance policy can be influenced by a number of factors, including:

The home’s location, value, construction type, and square footage
The homeowner’s age and credit score
The policy’s coverage amount, add-ons, and deductible
The house type, such as a single-family home or a townhouse

When choosing a policy, prices have the potential to increase based on add-on coverage or decrease when you find discounts such as bundling.

For more information on homeowners insurance costs read our guide to Homeowners Insurance Quotes.

What is the best homeowners insurance company?

Lemonade is rated No. 1 in our Best Homeowners Insurance Companies of 2022. It is noteworthy because nearly all of its customer transactions, from application to claims to policy termination, can be handled online. USAA, available only to members of the military and their families, and Erie Insurance are rated Nos. 2 and 3, respectively.

What is car insurance?

Car insurance can financially cover a motorist in case of an expensive accident, theft, or disaster. This means drivers can get financial support when emergencies occur.

Liability coverage means your auto insurance company will pay for repairs and medical expenses for another driver when you are at fault in an accident.
Comprehensive coverage can cover things like damage from hail, animals, riots, or vandalism.
Collision coverage can cover the damage to your car after an accident like hitting another car or a stationary object like a telephone pole.
Uninsured/Underinsured motorist coverage can provide support if you are hit by another driver who does not have insurance or whose policy doesn’t cover the cost of the damage to your car.

For more information on auto insurance read How Car Insurance Works.
Do I need car insurance?

Car insurance is required by law in most states, although the specifics can vary. Many states require at least liability insurance, while others require further types of car insurance such as personal injury protection and uninsured motorist protection.

This differs from homeowners insurance, which is generally only required by some lenders or neighborhood homeowners’ associations.
How much does car insurance cost?

Car insurance in the U.S. costs an average of $1,539 in 2022, according to an analysis of our Best Car Insurance Companies of 2022 ratings. The cost will vary by state. The least expensive state is Maine with a yearly average of $992. The most expensive state is Florida with a yearly average of $2,393.

However, your rates can differ widely depending on a multitude of other factors including your credit score, age, driving record, gender, marital status, how much coverage you purchase, and the make and model of your vehicle. If you’re interested in more affordable car insurance policies, read our guide to the Cheapest Car Insurance Companies of 2022.
What is the best car insurance company?

The No. 1 company in our ranking of Best Car Insurance Companies of 2022 is USAA. However, USAA is not available to all applicants, only to members of the military and their families. State Farm is No. 2 in our rating.

Best Homeowners Insurance of 2022

#1 Lemonade
#2 USAA
#3 Erie Insurance
#4 State Farm
#5 Nationwide
#6 American Family
#6 Amica
#8 Farmers Insurance
#9 Allstate
#10 Chubb
Best Car Insurance Companies of 2022

#1 USAA
#2 State Farm
#3 Farmers
#3 Nationwide
#3 Geico
#6 Allstate
#6 Travelers
#8 Progressive
#8 AAA
#10 American Family

Learn More

There is a lot more to learn about home and car insurance. Here are a few pages to help you on your journey.

Best Homeowners Insurance Companies of 2022
Cheapest Homeowners Insurance Companies of 2022
How To Buy Homeowners Insurance
How Does Homeowners Insurance Work?
What Does Homeowners Insurance Cover?

READ MORE

Other Ratings From 360 Reviews

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Best Renters Insurance Companies of 2022
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Best Pet Insurance Companies of 2022
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360 Methodology for Homeowners Insurance

Why You Can Trust Us: 30 Homeowners Insurance Companies ResearchedAt U.S. News & World Report, we rank the Best Hospitals, Best Colleges, and Best Cars to guide readers through some of life’s most complicated decisions. Our 360 Reviews team draws on this same unbiased approach to rate the products that you use every day. To build our ratings, we researched more than 30 homeowners insurance companies and analyzed 15 third-party reviews. Our 360 Reviews team does not take samples, gifts, or loans of products or services we review. All sample products provided for review are donated after review. In addition, we maintain a separate business team that has no influence over our methodology or recommendations.

The following describes our 360 approach to researching home insurance to guide prospective consumers.

1. We researched the companies and products people care most about.U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which companies Americans are most interested in. We found 30 homeowners insurance companies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources. After conducting a thorough analysis, we were able to condense the initial list to the 10 best home insurance companies. With the companies determined, we conducted comprehensive research on their features to create a general layout of what consumers should know to assist with their purchasing decisions.

We compared available coverages from top homeowners insurance companies across several criteria, including cost, coverage limits, policy features and availability. Research shows that these criteria are among the most important considerations to people shopping for homeowners insurance. We compared cost across different companies using an archetype that, as much as possible, represents a standard American home: a 2,400-square-foot townhome in Naperville, Ill., with an estimated market value of $450,000, equipped with a home security system and fire alarms, belonging to a non-smoking, four-person family with no pets. We built a standard plan that includes coverage for the home itself, personal property, personal liability, loss of use/additional living expenses and guest medical protection, with a $1,000 deductible and comparable coverage amounts.

2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.U.S. News’ 360 Reviews team applied an unbiased methodology that includes opinions from professional reviews as well as consumer reviews.

Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on personal opinions or experiences of U.S. News. To calculate the ratings:

(a) We compiled two types of third-party ratings and reviews:

Professional Ratings and Reviews. Many independent homeowners insurance evaluating sources have published their assessments of homeowners insurance companies and products online. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
Consumer Ratings and Reviews. U.S. News also reviewed published consumer ratings and reviews of homeowners insurance providers. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.

Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.

(b) We standardized the inputs to create a common scale.

The third-party review source data were collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.

The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company’s score compared to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:

Calculating the Z-Score. The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the mean from the company’s rating and divided it by the standard deviation to produce the Z-Score.
Calculating the T-Score. We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
Calculating the common-scale rating. We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.

(c) We calculated the 360 Overall Score based on a weighted-average model.

We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than one was excluded from the consensus scoring model.

Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.

3. We created a final Home and Auto Bundle score.

Our home and auto bundle scoring methodology is based on a weighted average of the 360 Overall Rating for Best Homeowners Insurance Companies of 2022 and U.S. News’ Best Car Insurance Companies of 2022. Insurance companies appearing in both 360 Reviews’ Best Homeowners Insurance Companies of 2022 and U.S. News’ Best Car Insurance Companies of 2022 were qualified to appear in the Best Home and Auto Insurance Bundles ranking. Furthermore, all companies in the Home and Auto Bundle ranking offer multi-product bundles for homeowners insurance and auto insurance policies. Ratings are not based on the personal opinions, tests, or experiences of U.S. News.

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

U.S. News & World Report (U.S. News) prepared this content about insurance companies for general informational purposes only. Neither U.S. News nor the individual writers of this content are licensed to sell or advise on insurance products. Some coverages, discounts and features may not be available in all states. For more information about any of the companies or products profiled herein, or to inquire about the purchase of insurance, please contact the insurance company, an insurance agent or a financial advisor. This content is not, and should not be considered to be, a recommendation to homeowners insurance products generally or an endorsement of a particular insurer or product. Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.