What is a Multiple Policy discount?

A multiple policy discount reduces car insurance rates for customers who have two lines of insurance with the same company. A multiple policy discount may reduce total insurance rates by 30%.

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UPDATED: Jun 2, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: Jun 2, 2022Fact Checked

Here's what you need to know...

  • The multi-policy discount is applied to premiums when you maintain two lines of insurance with the same carrier
  • In most scenarios, you’ll receive a discount off of your auto and property insurance premiums
  • Since the savings are applied to both policies, you’ll often save 30 percent or more off of your total insurance expense
  • If you insure two or more cars with the carrier, you’ll be able to stack the multi-policy and multi-car discounts
  • All insurance companies in the US that sell multiple lines of insurance will offer some type of multi-line discount

You see commercials advertising everything from sports drinks to cable TV. When you see advertisements that are aired by your local cable provider, it’s almost guaranteed that the company will talk about how bundling will save you money.

By buying more than one type of service through the company, it lowers the cost of all of the services. What’s great is that there is a similar bundling type of discount on insurance.

In the insurance industry, a bundling discount is typically referred to as a multi-policy discount.

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While there are 60+ discounts that you can shop for while you’re looking for a lower-priced plan, one of the most popular discounts that make a huge difference in your total cost of insurance. Here’s a guide to the multi-policy discount so that you understand how it works:

When do you qualify for a multi-policy discount?

In the insurance industry, you should always take advantage of discounts to lower your base rate. No matter who you are or what you drive, you’ll be eligible for at least small discounts off of your premiums.

To qualify for the multi-policy discount, you need to buy insurance from a carrier that sells more than one line of insurance.

After you’ve identified carriers that sell multiple lines of insurance, you can ask the agent if they offer their customers discounts when they combine policies.

Combining your policies means that you’ll have to bundle two or more of your insurance policies with the company so that you can save. Some of the types of policies that can be bundled include:

  • Auto with home insurance
  • Auto with renters insurance
  • Auto with condo unit insurance
  • Auto with landlord insurance
  • Auto with boat insurance
  • Auto with RV insurance
  • Auto with motorcycle insurance
  • Auto with life insurance
  • Auto with health insurance
  • Auto with disability insurance

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Why do insurance carriers give multi-policy discounts?

The multi-line insurance discount is perhaps one of the biggest discounts that a carrier will offer. It’s essentially like the company is giving you a break for buying in bulk as long as you’re buying in bulk under the same brand or a partner brand.

The reason for the discount is that the company is earning revenues for multiple policies from a single customer, which saves the company money in advertising and underwriting.

Insurance carriers also give discounts to their customers because the discount is likely to increase customer retention. 

Since consumers have such easy access to online quoting systems, it’s easier than it ever has been to shop the market and find lower rates. This shopping isn’t good for carriers who want to increase retention rates.

By offering their customers multi-policy discounts, companies believe it will be harder for them to find a lower rate if they intend on switching just their auto policy or just their home policy.

The carrier can ultimately lower their advertising expenses and sales expenses so they can turn more of the policy premiums that they collect into profits. In the end, offering lower rates could turn into larger growth.

How much is a multi-policy discount?


How much you’ll save after getting a multi-policy discount on your auto insurance depends entirely on the carrier and the other line of insurance you’re bundling.

Buying a second line of insurance through the carrier will almost certainly save you money, but some lines of insurance offer bigger discounts than others. Here’s a breakdown of the average savings by line:

  • Home – Save an average of 15 to 25 percent if you bundle auto with home insurance
  • Condo – Save an average of 10 to 15 percent if you bundle auto with condo insurance
  • Renter’s – Save an average of five to 10 percent if you bundle auto with renter’s insurance
  • Boat – Save up to five percent if you bundle auto and boat insurance
  • Life – Save up to 10 percent if you bundle auto and life insurance
  • Health – Save up to five percent if you bundle auto and health/disability insurance

One of the great things about multi-policy discounts is that you will save in not just one area but possibly two, especially if you are a condominium resident as condominium policies are usually standalone.

As long as you’re buying the other line of coverage from the same carrier and it’s a line of property insurance, the discount should be applied to your property insurance as well as your auto insurance.

If you’re combining your auto insurance with a line of health or life insurance, you probably won’t receive a discount off of the other premiums.

By law, you can only get multi-policy discounts off of the property and casualty policies and not the life or health lines.

The discounts are not allowed on health, disability, or life premiums.

Which insurance companies offer multi-policy discounts?


If you were to compare discounts from all of the carriers that are well known in the industry, you’d discover that the multi-line discount is probably the most popular discount available.

In fact, if you go down the line of discount offerings, this discount is the only one that all carriers that sell multiple lines of insurance all offer. Here’s a list of carriers with the discount:

  • 21st Century
  • AAA
  • Allstate
  • American Family
  • Ameriprise
  • Amica
  • Country Financial
  • Esurance
  • Farmers
  • Geico
  • Liberty Mutual
  • MetLife
  • Nationwide
  • Progressive
  • Safeco
  • State Farm
  • The General
  • The Hanover
  • The Hartford
  • Travelers
  • USAA

If you’re not currently receiving a multi-policy discount, you should ask your agent how much it will save you to bundle. Once you do that, get a quote for the other line of insurance and see if it makes sense to switch.

If you’re not with a multi-line carrier, start getting online auto quotes and see if you can buy auto and home insurance for the same price you’re paying for a single line of insurance.

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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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