Auto and Home Insurance: How the Two Policies Work Together

Which policy pays?

General examples. Coverage depends on the policy wording, deductibles, and exclusions.

What auto insurance covers

Auto insurance includes liability for injuries and damage you cause to others, coverage for your own injuries through medical payments or personal injury protection where offered, uninsured and underinsured motorist coverage, and physical damage coverage for your vehicle through collision and comprehensive. It does not generally cover personal belongings in the car, and it does not cover your home.

What homeowners insurance covers

Homeowners insurance typically covers the dwelling, other structures such as a detached garage or fence, personal property wherever it is located, additional living expenses if you must move out after a covered loss, and personal liability and medical payments to others. It does not cover your vehicles, and it usually excludes flood and earthquake, which require separate policies.

Bundling auto and home

Most insurers that sell both reward customers who buy both, usually with a multi-policy discount on each. A bundle can also simplify billing and service. But the discount is applied to each insurer's own base price, so a bundle can still cost more than the best separate combination. Always compare the bundled total with separate policies.

Single-deductible and other bundle features

Some insurers that write both home and auto offer a single-deductible feature: when one event, such as a hailstorm or a fire, damages both your home and your car, you pay only one deductible, usually the higher of the two. Others offer a combined renewal date or one bill. These features are not universal, so ask each insurer what it provides and whether conditions apply.

What to check on the home policy

• Dwelling coverage based on the cost to rebuild, not the market value, plus extended replacement cost if offered.
• Roof settlement terms, such as replacement cost versus actual cash value, and any separate wind or hail deductible.
• Water backup, service line, and ordinance or law coverage, which are often optional.
• Personal property at replacement cost and limits on jewelry, firearms, and electronics.
• Liability limits high enough to meet an umbrella insurer's requirements.

See our home insurance comparison guide for more.

Umbrella coverage over both

Personal umbrella insurance adds liability protection above your home and auto limits, usually in $1 million increments. Most umbrella insurers require minimum underlying limits on both policies, and many offer better pricing when home and auto are with them. If you have significant assets or a teen driver, price an umbrella as part of any home and auto comparison. See our umbrella insurance page.

Renters and condo owners

You do not need to own a house to bundle. Renters and condo insurance can be bundled with auto, often at a low cost, and renters insurance covers belongings stolen from your car. Condo owners should match their policy to the association's master policy.

Coverage terms to match on every quote

Limits shown are examples, not recommendations. State minimum requirements differ.

Ways to lower your premium

• Compare at least three quotes with identical coverage every year or two, and whenever your premium jumps at renewal.
• Raise collision and comprehensive deductibles to an amount you could pay tomorrow without strain.
• Drop collision and comprehensive on an older car only when the car's value is low enough that you could replace it yourself.
• Ask about every discount: multi-policy, multi-vehicle, good student, defensive driving, paperless, paid-in-full, and safety equipment.
• Try a driving-data program if you drive carefully and are comfortable sharing driving data. See usage-based insurance.
• Keep continuous coverage. Even a short lapse can raise future rates.
• Report accurate mileage. Lower annual mileage can mean a lower premium.
• Bundle auto with renters or homeowners insurance where the combined price is lower.

Discounts to ask about

Discount names, amounts, and availability vary by insurer and state.

Coverage you should think twice about cutting

Some coverage cuts save very little and expose you to large losses. Be cautious about:

• Buying only the state minimum liability. Minimum limits can be exhausted by a single serious injury, leaving you personally responsible for the rest.
• Rejecting uninsured motorist coverage. It protects you when the at-fault driver has no insurance or too little. See uninsured and underinsured motorist coverage.
• Dropping collision on a financed car. Lenders and lessors usually require it.
• Letting the policy lapse between vehicles or during a move.

How insurers set your price

Most insurers price a policy using your driving record, years licensed, age where allowed, the vehicle, where it is garaged, annual mileage, coverage limits, deductibles, prior insurance history, and, where state law permits, a credit-based insurance score. Each insurer weighs these factors differently, which is why quotes for the same driver can differ by hundreds of dollars. Improving the factors you control, especially your record and continuous coverage, pays off over several renewals.

Payment plans and fees

How you pay can change your total cost. Many insurers charge installment fees for monthly payments, and some offer discounts for paying the full term upfront, enrolling in automatic payments, or going paperless. If paying in full is not possible, ask which payment plan has the lowest fees. Missing a payment can cancel your policy and create a lapse, which raises future rates, so set up reminders or autopay.

When an agent may help

Online tools work well for simple situations. A conversation with a licensed agent may be more useful when:

• You have a teen driver, several vehicles, or drivers with recent accidents or violations.
• You need an SR-22 or other state filing. See our SR-22 insurance page.
• You use a vehicle for rideshare, delivery, or other business purposes.
• You own a home, rental property, or significant savings and want liability limits that work with an umbrella policy.
• You have had a claim denied or a policy nonrenewed and need help understanding your options.

An agent can also explain differences in policy wording that are hard to see on a results page.

Switching insurers without a gap

If a new quote is lower, switch carefully so you are never uninsured:

1. Confirm the final price after the insurer verifies your information.
2. Set the new policy to start on or before the date the old one ends.
3. Give the new insurer your lender or lessor information if the vehicle is financed.
4. Save your new ID cards and declarations page.
5. Cancel the old policy effective the same day, and ask about any refund of unused premium.
6. If you have an SR-22, confirm the new insurer files it before the old filing ends.

What to have ready for home and auto quotes

These details help produce accurate quotes.

1. Home details. Address, year built, square footage, roof age and material, and updates.
2. Current declarations pages. Home and auto.
3. Driver details. Licenses and dates of birth.
4. Vehicle VINs. And annual mileage.
5. Claims history. Home and auto claims in the past five years.

Auto and home insurance FAQs

Related guides

• Home and auto insurance quotes
• How to find the best bundle
• Home insurance comparison

Your next step

Request home and auto quotes, and a licensed agent will compare bundled and separate options available to us.