Best and cheapest companies for home and auto bundles in Alabama

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When you shop for home and auto insurance, some companies will have a better deal on bundled coverage than others. We compared multi-policy discounts from insurance companies in Alabama to determine which will give you the biggest price break when you purchase multiple types of coverage.

State Farm offers the biggest percentage break on your home and auto premiums in Alabama when you bundle. Bundle your policies with this insurance company, and it will cut your costs by an average of 27%.

Meanwhile, Allstate offers the cheapest overall rate when you bundle with the company in Alabama. On average, you will pay $2,543 when you bundle.

How we picked the best companies for home and auto bundling

Insure.com analyzed home and auto insurance rates from Quadrant Data Services in 2024 for all 50 states and Washington, D.C. Home and auto bundling discount percentages, based on the average discount from each company were also analyzed. Before and after bundling rates were calculated using the average discount percentage. We included 48 companies and 4,686 ZIP codes in our analysis.

Insure.com’s choice: Best companies for home and auto bundles in Alabama

Insure.com’s analysis ranked companies based on the average bundle discount they offer both in terms of dollar amount and percentage. Based on those criteria, these are the best companies for home and auto bundles in Alabama.

State Farm

The average bundle discount at State Farm is $1,245, or 27%. The average cost of auto and home insurance is $4,573 without the discount. With a bundle discount, the average drops to $3,328. State Farm ranked at No. 6 in our Best Auto Insurance Companies ranking and at No. 4 in the Best Home Insurance Companies ranking.

Allstate

The average bundle discount at Allstate is $492, or 16%. Before the bundle discount, the average cost of auto and home insurance is $3,035. After the bundle discount, you can expect to pay $2,543 on average. at No. Allstate ranked 11 in our Best Auto Insurance Companies ranking and at No. 5 in the Best Home Insurance Companies ranking.

Nationwide

The average bundle discount at Nationwide is $1,020, or 19%. Before the bundle discount, auto and home insurance costs $5,263. With a bundle discount, that drops to $4,243. Nationwide ranked at No. 4 in our Best Auto Insurance Companies ranking and at No. 7 in the Best Home Insurance Companies ranking.

Farmers Insurance

The average bundle discount at Farmers Insurance is $815, or 17%. Before getting a bundle discount, customers pay $4,668 on average. After getting a bundle discount, customers pay $3,853 on average. Farmers Insurance ranked at No. 12 in our Best Auto Insurance Companies ranking and at No. 8 in the Best Home Insurance Companies ranking.

Auto-Owners

The average bundle discount at Auto-Owners is $619, or 12%. Without the bundle discount, the average cost is $5,100 for both policies. When the bundle discount is added, the average cost drops to $4,481. Auto-Owners ranked at No. 2 in our Best Auto Insurance Companies ranking and at No. 3 in the Best Home Insurance Companies ranking.

Home and auto insurance bundle comparison in Alabama

The amount you can save on home and auto insurance with a bundle in Alabama varies by company. Here is a breakdown of the rates and savings with top companies.

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

What company provides the cheapest home and auto bundles in Alabama?

State Farm offers the biggest percentage discount if you bundle. Allstate offers the cheapest rate overall if you bundle.

Most and least expensive ZIP codes for home and auto insurance bundles in Alabama

Where you live can help to determine how big of a discount you will get for bundling coverage, and also the base rates from which that discount is taken. Here are the most and least expensive ZIP codes in Alabama for policyholders who bundle their coverage:

Most expensive ZIP codes

The most expensive ZIP code in Alabama for home and auto insurance bundling is 36527 at an average rate of $4,548. See the 10 most expensive ZIP codes below.

Least expensive ZIP codes

The least expensive ZIP code in Alabama for home and auto insurance bundling is 36345 at an average rate of $3,365. See the 10 least expensive ZIP codes below.

Frequently asked questions about home and auto bundle insurance

Is bundling home and auto insurance right for everyone in Alabama?

Bundling your coverage can be one of the best ways to save on insurance. It also can be convenient to have all of your coverage with the same insurer. By bundling, you have one insurance company and can check all your coverages on a single website.

However, bundling might not always be the wisest option. For example, an insurer that offers a great deal on auto insurance might charge higher rates on homeowners insurance. In such a circumstance, you might be better off purchasing your auto insurance from one insurer and your homeowners coverage from another.

In addition, it is possible that an insurer might offer the coverage options you need for one type of insurance but not for the other.

Rather than simply assuming that a bundle is your best deal, it always pays to shop around.

“Remember when buying insurance that you’re doing so to protect your most valuable assets,” says Christine O’Brien, president of the Insurance Council of New Jersey. “Take the time to learn about policy limits and coverages and get several quotes.”

How can you switch to a home and auto bundle in Alabama?

Switching to a bundle is easy. Many people make this change when one of their policies is up for renewal. For example, if your auto insurance is with one company and your homeowners insurance is with another, you can decide to bundle your coverage with a single insurer the next time the coverage term for one of the two policies ends.

However, you do not have to wait until renewal to bundle your policies. If you decide to cancel one of your policies prior to the end of its coverage term, you should receive a refund for the months you will no longer be insured with the company.

If you decide to end coverage on one of your policies, be careful not to do so until you are sure your new coverage is in place and has been activated.

Methodology

Insure.com analyzed rates and discount averages provided by Quadrant Data Services in 2024 fielded from all 50 states and Washington, D.C. Rates were compared based on average home and auto premiums before bundling and after bundling based on the average multi-policy discount offered by each insurance company. The average total rate after the discount was calculated by subtracting a dollar amount equal to the average discount percentage from the pre-discount total rate.

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Chris Kissell

Contributing Researcher

 

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Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.