Insurance agencies often recommend that you bundle home and auto insurance, but it’s not always that simple. There are a lot of different things to consider. While bundling your home and auto is usually cheaper, this isn’t always the case.

In general, home and auto insurance bundles can result in a 5%-25% discount. Your home insurance will likely have the highest discount since it’s usually the most expensive. The average savings on an auto insurance policy when bundled with home insurance is around 11.4%, while homeowners’ insurance policies save around 20% on average by bundling with auto.

These rates vary per insurance agency and state. Make sure to shop around thoroughly before signing to a policy or bundle.

When you sign up for an insurance policy for either your home or vehicle, insurance agents will usually recommend bundling home and auto insurance with them. This means you can have information for both of your insurance policies in one place. It also means that your insurance company is less likely to drop you for tickets, fines, living in a high-risk home or being a high-risk driver.

Pros of Bundling Auto Insurance

• If you have accidents or a bad record, your insurance company is less likely to drop you
• Possibly cheaper insurance rates
• Cheaper home insurance rates
• Information is all in one place

Cons of Bundling Auto Insurance

• You’re discouraged from shopping for cheaper car insurance
• The discount may not be substantial
• Insurance rates may crawl up without your notice

Bundle discounts can also vary depending on how many and what type of policies you bundle with an insurance agency. Most agencies offer a wide range of insurances, and you can save through bundling auto with life, renters and condo insurance. In general, however, you’ll save the most money bundling your auto insurance with a home insurance policy.

The actual price average of money saved depends on several factors, including the state. In Massachusetts, for example, the average cost of auto insurance bundled with home insurance is $1,311. Keep in mind that many factors attribute to car insurance prices beyond location such as age, gender, type of car and more.

Shop around and be sure to consider every choice while bundling home and auto insurance.