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.
Best Home and Auto Insurance Bundle (tie)
Pros:
-
Uniform coverage for active and reserve service members included
Cons:
-
Policies only available for USAA members
-
Bundling discounts not as high compared to others in our rating
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multipolicy Discount Available
- Bundling Discount
- Up to 10%
USAA earns the highest financial strength rating available for insurance companies: an A++ from AM Best. While available nationwide, USAA’s auto and homeowners insurance policies are only available to its members. Membership to USAA is reserved for qualified members of the military and their families. The insurer offers all of the standard coverages for its auto insurance policy, as well as common discounts such as for maintaining a clean driving record. The same goes for its homeowners insurance policies. Identity theft protection is also included, unlike some competitors.
USAA’s standard homeowners insurance policy includes uniform coverage for active-duty and deployed service members. It also includes replacement cost coverage for personal belongings. According to our analysis, the overall discounts offered aren’t as high compared to other competitors in our rating. That being said, USAA does offer a discount for military members, something not all insurers offer.
For the full reviews, read our USAA homeowners and car insurance page.
See Full Review »
Best Home and Auto Insurance Bundle (tie)
Pros:
-
Variety of additional coverages for homeowners insurance policies
-
Numerous discounts available
Cons:
-
Policies only available through State Farm agents
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multipolicy Discount Available
- Bundling Discount
- Up to $1,127
State Farm has offices in all 50 states plus Washington, D.C., but the company is not writing new policies in Massachusetts and Rhode Island. It has a financial strength rating of A++ from AM Best, the highest available. The insurer offers many coverage options for both car and homeowners insurance policies. For instance, homeowners can purchase additional coverage for home businesses, sewer or drain backup, identity restoration protection, and increased limits for ordinance or law coverage.
Applicants can qualify for a reduction on their premium when bundling home and auto, plus a whole slew of other discounts are available. These include savings for installing home-security devices, going claims-free for a set period of time, and being a loyal customer.
Policyholders can take advantage of several other features including filing claims online, and a mobile app to view, modify and pay for their premiums. You can begin the quote process online, but applicants will need to work with a State Farm agent to purchase coverage.
For the full reviews, read our State Farm homeowners and car insurance page.
See Full Review »
Pros:
-
Multiple discount opportunities available
Cons:
-
Policies tend to cost more on average than competitors in our rating
-
Must work with an agent in order to purchase a policy
- AM Best Rating
- A+
- Quote Access
- Online Estimate
- Multipolicy Discount Available
- Bundling Discount
- Up to 25%
Available in all 50 states and Washington D.C., Allstate offers standard coverage that’s similar to what competitors offer for their auto and homeowners insurance policies. Some optional add-on coverage for auto insurance includes classic car insurance, roadside coverage, and rideshare insurance. Allstate’s homeowners insurance policy has several optional coverages, including identity protection plans, insurance against water backups, and coverage in case the homeowner needs to make additional repairs to meet building codes.
One interesting coverage option for homeowners is Allstate’s HostAdvantage home-sharing insurance. Policyholders will be protected if their belongings are stolen or damaged while there are renters in the home.
Although policyholders can file a claim and manage policies online through Allstate’s app, applicants will need to call the insurer or work with an agent to purchase a policy. Plus, policies may cost more compared to other competitors in our analysis, though Allstate does provide some discount opportunities, including bundling, that could lower premiums.
For the full reviews, read our Allstate homeowners and car insurance page.
See Full Review »
Pros:
-
Credit card fraud protection included in homeowners insurance policy
-
Identity theft coverage available as an option
Cons:
-
Not available in all states
-
Policies may not be as competitively priced as other insurers in our rating
- AM Best Rating
- A+
- Quote Access
- Online Estimate
- Multipolicy Discount Available
- Bundling Discount
- Up to 20%
Nationwide is rated A+ from AM Best, considered a superior financial strength rating. Applicants can find the typical coverages for auto and homeowners insurance policies, such as uninsured motorist coverage and protection against stolen or damaged personal property. There are some coverages that other insurers don’t include in their standard offerings, such as credit card coverage. The latter protects policyholders from unauthorized transactions on their credit card, debit card, and provides coverage against forged checks and counterfeit money. Optional identity theft protection is also available.
Nationwide offers a variety of additional coverage options to customize your policy. Some of its options include water backup coverage, equipment breakdown, and higher coverage limits for valuables. Policyholders can access their policies online or through the mobile app — features include managing and paying policy premiums.
The insurer is not available in Alaska, Georgia, Kentucky, Maryland, New Hampshire, and New Jersey.
For the full reviews, read our Nationwide homeowners and car insurance page.
See Full Review »
Pros:
-
Options available for homes that use energy-efficient or eco-friendly materials
Cons:
-
Discounts may not be as high compared to other insurers in our rating
- AM Best Rating
- A++
- Quote Access
- Online Estimate
- Multipolicy Discount Available
- Bundling Discount
- Up to 12%
Travelers Insurance has a superior financial rating of A++ from AM Best. Like many of its competitors in our rating, it offers an online quoting tool and a mobile app. Policyholders can use either to view and manage their policy, file claims, and track their claims.
In addition to its standard home and auto insurance coverages, Travelers offers additional coverage to repair or rebuild their home with eco-friendly materials after a successful claim. Homeowners may also be eligible for a discount on their premiums if they have a home that meets certain efficiency standards.
That being said, its discounts may not be as plentiful compared to other insurers in our rating. For instance, Travelers doesn’t offer discounts for electronic document delivery or for getting a quote before purchasing a policy.
For the full reviews, read our Travelers homeowners and car insurance page.
See Full Review »
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. It 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.
With so many coverage options and insurance companies to choose from, finding the best homeowners policy can seem overwhelming at first. 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.
- Determine how much coverage you need to rebuild your home. The amount of coverage you need will partly depend on the cost to rebuild your home, along with any fences, pools, and detached buildings on your property in the event of a total loss. You can estimate rebuilding costs on your own or seek advice from a local real estate professional.
- Estimate the cost to replace possessions. You’ll want to estimate the cost to replace the possessions in your home and on your property. Don’t forget to include musical instruments, sporting equipment, and outside items, such as a barbecue grill, as well as certain valuables and collectibles that may be tucked away out of sight.
- Document personal items and property. A good way to have a record of personal items is to go through your home and take pictures or record a video of each room and its contents, making updates from time to time to include newer purchases. Once you’ve completed your record, find a secure place to store it remotely.
- Choose a reputable insurance company. 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.
- Research and take advantage of available discounts. You’ll want to take advantage of any discounts you can, like bundling your homeowners insurance with an auto policy or having security equipment, such as smoke detectors or sprinkler systems, installed. A good insurance agent or company website can help with this.
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.
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.
Homeowners insurance provides some financial protection when rebuilding, repairing, or replacing your home and belongings after covered perils 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.
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.
Our study found homeowners insurance to cost between $88 and $264 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.
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.
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.
Car insurance in the U.S. costs an average of $1,539 per year, according to an analysis of our Best Car Insurance Companies of 2023 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 2023.
The No. 1 company in our ranking of Best Car Insurance Companies of 2023 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 Companies of 2023
Best Car Insurance Companies of 2023
There is a lot more to learn about home and car insurance. Here are a few pages to help you on your journey.
read more
Other Ratings From 360 Reviews
At 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 15 homeowners insurance companies and insurance agencies and analyzed 11 reviews from both professionals and consumers. 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 and analyzing homeowners insurance companies 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 homeowners insurance companies and agencies Americans are most interested in. We found 15 homeowners insurance companies and agencies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources.
We then compared the available homeowners insurance companies and agencies across several criteria, including standard cost, dwelling and structure coverage, identity theft protection, valuable possessions coverage, and available discounts. Research shows that these are the most important criteria for people shopping for a homeowners insurance company.
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 agencies and their policies 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 and agency’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 or agency, 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 two 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.
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.
link