Glossary

Multi-policy discount

A premium reduction for buying your home policy and another policy, usually auto, from the same insurer or insurance group.

Also called: bundling discount, bundle discount, multi-line discount

A multi-policy discount lowers your premium when you buy more than one kind of insurance from the same insurer or its affiliates. The usual pairing is homeowners with personal auto, but umbrella, renters, condo, life, boat or RV policies can also qualify. The insurer applies a percentage credit to the home policy, the auto policy or both. The size varies by company and state, so read the figure on your declarations page rather than relying on an advertised range.

Say your home premium is $2,400 and the company gives 12% off for bundling (hypothetical): that is $288 a year. Compare the bundle against buying each policy separately from the cheapest carriers, because a bundle can lose to two stand-alone policies from different companies. The home and auto bundle savings calculator helps you test it.

Weigh the trade-offs. With one carrier, a rate increase or nonrenewal in one line can ripple into the other. Some insurers require minimum liability limits on the auto policy to earn the discount, and the credit may shrink or disappear if you drop one policy. Ask whether it still applies after a claim. The bundling guide covers the math, and the claims-free discount entry covers another common credit.

Last reviewed October 10, 2026

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Related terms

Claims-free discount A premium credit for homeowners with no paid claims over a set number of recent years, verified from the insurer's records and claims history reports. Protective device discount A premium credit for installing safety equipment such as monitored burglar or fire alarms, sprinklers, smoke detectors, deadbolts or water-leak shutoffs. Mitigation credit A premium discount for building features shown to reduce storm or wildfire damage, such as a reinforced roof, impact windows or defensible space. Premium The price of a policy for its term, set by rebuilding cost, location, claims history, roof, deductible and other rating factors. Surcharge An extra amount added to a premium because of a specific risk factor, claim history or state-required assessment, usually shown apart from the base rate. Underwriting How an insurer evaluates a home and its owner, decides whether to offer coverage and on what terms, and sets the price.

Related guides

AAA home insurance: the clubs behind it AAA home policies come from regional auto clubs, not one national insurer. Learn which club insures you, what membership means, and what to check on the policy. Your annual homeowners insurance review Compare this year's renewal declarations page with last year's, recheck your rebuild cost and discounts, and decide whether to shop. A step-by-step review. Bundling home and auto insurance: when it pays A bundle pays only if the combined price beats the cheapest separate policies at equal coverage. How multi-policy discounts work, and Texas's 2025 ban on tying. Farm Bureau home insurance: how membership works Farm Bureau insurers are state-by-state companies tied to farm organizations; you usually join to buy, pay dues on top of premium, and deal with local agents. Homeowners insurance discounts to ask about Which homeowners insurance discounts exist, what each rewards, where state law requires them and how to get every one you qualify for credited on your policy. Retiree, employer and affinity group discounts How retiree, employer, alumni and association discounts work, which insurers offer them, and how to net out membership dues before you compare quotes.

Related insurers

AAA - CSAA Insurance Group Walnut Creek-based AAA insurer, a reciprocal exchange, selling home, condo and renters policies to members of partner AAA clubs in 23 states and D.C. Arbella Insurance Quincy, Massachusetts mutual founded in 1988 that sells home, condo and auto insurance through independent agents in Massachusetts and Connecticut; AM Best A. Branch Insurance Columbus, Ohio insurtech founded in 2017 that sells bundled home and auto insurance online and through agents, mostly via its member-owned reciprocal exchange. GEICO Homeowners Insurance (GEICO Insurance Agency) GEICO does not underwrite most home policies: its agency places home, condo and renters coverage with partner insurers that set the terms and pay claims. Progressive Home Progressive's home insurer, the former ASI of St. Petersburg, Florida, sold online and by agents; Progressive also places home policies with partner carriers. Safety Insurance Boston insurer, founded 1979, selling home and auto coverage through independent agents in Massachusetts, New Hampshire and Maine; MAPFRE is buying it.

Related tools

Home and auto bundle savings calculator Check a home and auto bundle discount against the same company's separate prices and against the best separate quotes you can find elsewhere.