Quick answer: Bundling your home and auto insurance with one company usually saves money. In Illinois, major carriers took 10% to 23% off for a bundle in 2026 rate data, and the national average is about 15%, or roughly $869 a year. But the biggest discount is not always the cheapest bundle. What matters is the total you pay for both policies, and the coverage you get for it.
With home and auto rates still climbing across the Midwest, a lot of Chicago households are looking at bundling as a way to bring their renewals back down. Here is how the discount works, what it is worth in Illinois, when it pays, and when two separate policies come out ahead.
What Bundling Means
Bundling means buying two or more policies from the same insurance company, most often homeowners and auto. In return, the company gives you a multi-policy discount. The Illinois Department of Insurance lists "auto/home packages" among the standard discounts Illinois drivers can ask about, applied when you buy both policies from the same company. Depending on the carrier, the discount can apply to the home policy, the auto policy, or both.
Bundling does not mean one combined policy. You still get a separate homeowners policy and auto policy, each with its own coverage, limits, and deductibles. They simply share a company, and usually an agent and a renewal date.
How Much Bundling Saves in Illinois
Insurance.com's 2026 study, built on rates from Quadrant Information Services, found these bundle discounts for Illinois households:
| Carrier | Bundle discount | Average bundled premium |
|---|---|---|
| Allstate | 23% | $4,776 |
| State Farm | 21% | $4,052 |
| Country Financial | 21% | $5,091 |
| Auto-Owners | 15% | $2,823 |
| Travelers | 10% | $3,525 |
Look at the two columns together. The largest discount in the table, 23%, came with a bundled price of $4,776 a year. A 15% discount came with a bundled price of $2,823, about $1,950 a year less. A percentage only tells you how much a company takes off its own price. It says nothing about how that price compares to everyone else's.
These are averages for a sample household with full coverage. Your numbers will depend on your home's age and rebuild cost, your ZIP code, your cars, your drivers, and your claims history.
When Bundling Pays Off
- Your current carrier is competitive on both lines. If one company already prices both your home and your cars well, the discount is extra savings on top.
- You want one point of contact. One agent, one app, one renewal date, and often one bill make it easier to keep your coverage organized and spot gaps.
- You need an umbrella policy. Most carriers require your home and auto liability to be with them before they will write a personal umbrella policy, and many give an extra discount when you add one.
- One storm hits everything. When hail or a falling tree damages your house and your car at the same time, having both policies with one company can mean a single claims adjuster, and some carriers will apply only one deductible.
- Loyalty perks. Some carriers pair bundles with features like accident forgiveness or claim-free credits that only apply when you hold multiple policies.
When Separate Policies Can Cost Less
- One side of the bundle is overpriced. A company may be excellent for car insurance and expensive for older Chicago homes, or the other way around. A great auto rate does not make up for a homeowners premium that is $800 too high.
- Your home is hard to insure. Older frame houses, two-flats, homes with knob-and-tube wiring, or a history of water claims can push a home policy to a specialty carrier. Our guide to insuring older homes in Chicago covers why.
- Your driving record changed. A teen driver, a ticket, or an at-fault accident can make your bundled auto rate jump far more than the discount is worth.
- The coverage got thinner. A cheaper bundle is not a better one if it lowers your dwelling limit, swaps replacement cost for actual cash value, or drops sewer backup coverage.
Other Bundles Chicago Households Use
- Renters and auto: the most overlooked bundle in the city. Renters insurance is inexpensive, and the auto discount can cover much of its cost. See our Chicago renters insurance guide.
- Condo and auto: works the same way as a homeowners bundle. Our guide to Chicago condo insurance for unit owners explains what an HO-6 policy has to cover.
- Two-flat or landlord policy: many carriers count a rental dwelling policy toward the discount. See our guide to Chicago two-flat insurance.
- Toys: motorcycles, boats, and RVs can often join the bundle. More in insuring your bikes, boats, and ATVs.
Captive Agent vs. Independent Agent for Bundles
A captive agent, who sells for only one company, can show you that company's bundle and nothing else. If the price is high, your only option is to leave and start over. An independent agent can quote bundles from several carriers side by side, and also price separate policies, so you can see which combination actually costs less. Read more about independent vs. captive agents, or see how we compare with State Farm and Allstate.
How to Compare Bundles: A Checklist
- Pull the declarations pages for your current home and auto policies.
- Write down your current total annual premium for both policies.
- Ask for quotes with the same limits and deductibles, so you compare like with like.
- Compare each bundle's total price, not its discount percentage.
- Price separate policies from different carriers as a check.
- Confirm the dwelling limit matches today's rebuild cost.
- Check for sewer backup, service line, and replacement cost coverage on the home.
- Ask whether an umbrella policy, renters, or a rental property can join the bundle.
- Find out whether the carrier offers a single deductible when one event damages your home and car.
- Line up the new start dates before canceling anything, so you are never without coverage.
The Bottom Line
Bundling is one of the biggest discounts in personal insurance, and for most Chicago households it is worth checking every renewal. Just judge a bundle by its total price and its coverage, not by the size of the discount. If your rates jumped this year, our guides to reshopping home and auto insurance and saving money when premiums spike have more ways to bring them down.
As an independent insurance agency in Chicago, we compare home and auto bundles from multiple carriers, along with separate homeowners and car insurance quotes, and show you which combination really costs less. Contact Six Corners Insurance for a free bundle review.
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Frequently Asked Questions
How much do you save by bundling home and auto insurance in Illinois?
In Insurance.com's 2026 rate data, Illinois bundle discounts from major carriers ranged from 10% to 23%. Nationally, bundling saves an average of about 15%, or roughly $869 a year. Your discount depends on the carrier, your home, your cars, and your driving record.
Is bundling always cheaper?
No. The bundle discount is taken off each carrier's own price, so a big discount on an expensive policy can still cost more than a smaller discount, or two separate policies, somewhere else. In the same Illinois data, the bundle with the biggest discount cost about $1,950 a year more than one with a 15% discount. Compare the total price, not the percentage.
Can renters or condo owners bundle?
Yes. Most carriers give a multi-policy discount when you pair auto with renters or condo insurance. The discount is usually smaller than a homeowners bundle, but renters insurance is inexpensive, so adding it often costs very little after the auto discount.
What else can I bundle besides home and auto?
Common add-ons include a personal umbrella policy, a landlord policy on a rental unit or two-flat, motorcycles, boats, RVs, and sometimes life insurance. Each carrier decides which policies count toward its discount.
Will I lose my discount if I move one policy?
Usually yes. The multi-policy discount depends on keeping the qualifying policies with the same company, so moving your auto policy can raise the price of the home policy you leave behind. Count that change before switching either one.
