Stop Being Loyal to Your Insurance Company
Here's something worth knowing before you renew your insurance: the policy you have today may not be the best deal available to you. And it's easier than ever to find out.
For years, one of us had the same carrier. Home, car, the whole bundle. The agent swore it was a great deal — and honestly, we believed it. Bundling feels smart. It feels responsible. It feels like you're being a savvy adult who has their finances together. One bill. One company. One less thing to think about.
And then we bid out the car insurance. That's when everything changed.
The premium was $1,400 a year for one car. After shopping around and switching carriers, it was $1,400 for two cars. Same coverage. Half the per-car cost. We've since shopped again and found a better rate — and we no longer bundle. What seemed like a smart money move turned out to be an assumption that hadn't been tested in years.
We were paying $1,400 a year for one car. We shopped around and paid $1,400 for two cars. Same coverage. Half the cost.
The Bundling Question
The insurance industry has done a good job of making bundling feel like the obvious choice. And in many cases, it genuinely is. Bundling home and auto insurance saves an average of 15% annually, or just over $700. Major carriers advertise savings in the hundreds to over a thousand dollars. For a lot of households, that math works out.
But it's worth knowing that bundling isn't always the best deal for every household. Sometimes it's cheaper to buy home and auto separately from different companies. Bundles average around $542 in annual savings, but separate policies from different insurers can sometimes come in lower — so it's worth running the comparison before you decide.
The bundling discount is real. But it's a discount off that carrier's price. If their base price is higher than a competitor's, the discount can still leave you paying more overall. That's the part worth checking. A 25% bundle discount sounds impressive — but 25% off a higher starting number may not beat a lower rate elsewhere.
One thing worth noting: among people who stuck with their auto insurance carrier after shopping around, 40% said they did so because they bundle. That convenience has real value — but it's worth making sure you're also getting competitive pricing.
What Happens When You Actually Shop
The data on this is pretty compelling. Here's what the numbers say:
Nine out of ten people who shopped around paid less after switching. Consumer Reports' 2024 auto insurance survey found that among those who had switched insurers in the past five years, the median annual savings was $461. And yet, 65% of policyholders don't get outside quotes when their policy is up for renewal. Most people just renew. Year after year. Which is completely understandable — but it may be leaving money on the table.
Insurance companies have raised rates significantly in recent years — average car insurance premiums jumped 55% between 2020 and 2025. New customers at competing carriers are often offered more competitive introductory pricing. Shopping around is simply how you make sure you're still getting a fair deal.
So Is Bundling Ever Worth It?
Yes — but only if you've verified the math. The bundling discount is most valuable when the bundled price, after the discount, is still lower than what you'd pay buying each policy separately from different companies. That comparison requires an extra step most people skip.
Consumer Reports put it plainly: bundling is worth looking into, but it's not a one-size-fits-all way to save on premiums. One person might save by bundling; another might save more by going separate. The only way to know is to run both scenarios side by side.
Our recommendation: get quotes for your home and auto together from two or three carriers, and get separate quotes from different companies. Do the actual math. Don't let the word "discount" do all the thinking for you.
The Move: Shop Every Year
Whether you're buying a home for the first time or you've owned for years, this is one of the easiest ways to protect your financial health. Independent data shows that the cheapest large carrier can be hundreds — sometimes over $1,000 — less per year than the most expensive for comparable coverage. That gap exists whether you know about it or not.
The experts recommend shopping at every renewal, or at minimum every two to three years. Here's how to do it right:
- Get at least three to four quotes — don't stop at two
- Compare the same coverage and limits across every quote, not just the price
- Run a bundled scenario AND a separated scenario to find the true winner
- Call your current carrier and tell them what competitors are offering — sometimes they'll match
- Shop at policy renewal to avoid cancellation fees or coverage gaps
- Reassess after major life changes: new home, new car, marriage, added drivers
We've shopped our car insurance multiple times over the past few years and saved meaningfully each time. We're not anti-bundling — there are situations where it's absolutely the right call. We're pro-information. The moment you stop checking, you lose the ability to make an informed decision.
As real estate professionals, we help buyers think through the full cost of homeownership — not just the mortgage, but the insurance, the taxes, the maintenance, the carrying costs. Insurance is one of the few line items where an annual review can genuinely make a difference. It's worth the hour.
We're not anti-bundling. We're pro-information. Shop around annually and make sure the deal you have is still the best deal available.
If you're looking for a starting point, we've put together a curated list of trusted insurance providers in Austin. Browse our Austin Insurance Vendor Guide →
