Best & Cheapest Home And Auto Insurance Bundle In Texas 2025

If you’re looking for affordable home and auto insurance in Texas, Farmers offers the cheapest bundle, with an average annual premium of $2,962.

Bundling your home and auto policies is one of the most effective ways to reduce your insurance costs. When you buy both policies from the same insurer, you may be eligible for multi-policy discounts that make coverage more affordable — especially in high-risk areas.

In Texas, bundling home and auto insurance can save you an average of $200 per year — or around 7% off your total premium. Your actual savings will depend on where you live.

The exact amount you can save is based on where you live with those in Dallas and Houston saving an average of $440 per month on a bundle policy compared to $220 per month in El Paso.

With homeowners insurance premiums in Texas rising an average of 23% year over year, mostly due to inflation and extreme weather events, taking advantage of bundle discounts can make it much easier to afford the coverage you need.

Cheapest Home And Auto Bundles In Texas 2025

If you’re looking to save the most by bundling your home and auto insurance in Texas, Farmers offers the most affordable option, with an average annual premium of $2,962.

Here’s how the top providers compare:

Cheapest Non-Bundle Insurance Combinations In Texas

While bundling typically leads to savings, in some cases it can be cheaper to purchase your auto and home insurance policies separately — especially if you’re working with companies that have strong standalone offerings.

The cheapest non-bundled combination in Texas is:

• Auto insurance from Nationwide
• Home insurance from Farmers

This combo results in an average annual premium of $3,669.

Here’s how other non-bundled combinations compare:

Biggest Home And Auto Bundle Discounts In Texas

State Farm provide the largest discount for bundling your home and auto insurance policies, at 26%.

While the total cost of a bundle matters most, the size of the discount can also reveal which insurers are offering the best value when you combine policies.

Here are the largest bundling discounts currently available in Texas:

Benefits Of Bundling Your Insurance Policies

Bundling your home and auto insurance isn’t just convenient — it can lead to real savings and better overall service. Here are some of the biggest advantages of combining policies with the same provider:

Significant Savings on Premiums

Bundling can lead to savings of up to 25%, according to Experian. Many insurers offer multi-policy discounts when you combine auto and home insurance — and in Texas, that can translate to hundreds of dollars saved per year.

Quick Tip: Some insurers offer additional discounts (often around 5%) when you enable automatic payments — and yes, this can stack on top of your bundling discount.

Simplified Insurance Management

Managing multiple policies across different insurers means juggling:

• Separate bills
• Different renewal dates
• Multiple customer service contacts

Bundling puts everything in one place — making it easier to pay your premiums, file a claim, update coverage, and track your documents through one app or online portal.

Enhanced Customer Service

When you bundle, you’re a higher-value customer. That means:

• Better support from your agent or claims department
• Potential loyalty perks or additional policy options
• Priority handling during peak claim periods (like after a storm or wildfire)

One Deductible for Combined Claims

Some insurers offer single-deductible policies, which means if the same event (like a severe storm or falling tree) damages both your car and home, you only pay one deductible — not two.

Drawbacks Of Bundling Your Insurance Policies

While bundling your home and auto insurance can be a smart financial move, it’s not always the right choice for everyone. Here are some situations where bundling may not be the best fit:

You Might Pay More for One Policy

Not every insurer is equally competitive across all policy types. A provider might offer great auto rates but charge significantly more for homeowners insurance (or vice versa). When you bundle, you risk overpaying for one part of your coverage, which could cancel out the discount entirely.

Limited Flexibility in Coverage

Each insurance company has its own strengths. Bundling forces you to stick with one provider — which could mean missing out on better coverage options, policy features, or claims handling available from another company. For example, a carrier strong in auto may fall short when it comes to high-value home coverage or extreme weather protections.

Complacency Can Cost You

Once you’ve bundled, it’s easy to assume you’re getting the best deal — and stop shopping around. But renewal premiums often creep up, and other insurers may be offering more competitive rates or better discounts. Over time, sticking with a bundle could mean leaving money on the table.

Less Access to Specialized Coverage

In Texas, where weather-related risks like hurricanes, hail, and flooding are a concern, not all bundled plans cover the specialized endorsements or add-ons you may need. You might have to compromise on coverage to keep your bundle intact — which can leave you underinsured in high-risk areas.

Biggest Home And Auto Bundle Discounts In Texas

State Farm has the biggest discounts in Texas followed by the Texas Farm Bureau and Nationwide.

• State Farm: State Farm offers 24% discounts in Texas when you bundle home and auto.
• Nationwide: Nationwide provides discounts averaging 11% in Texas for bundles.
• Texas Farm Bureau: The Texas Farm Bureau gives an average of 14% for bundled discounts.

Average Home And Auto Bundle Rates In Texas – By City

Insurance costs can vary significantly across Texas depending on local risk factors, home values, and traffic patterns. Below is a breakdown of the average monthly premiums for standalone home insurance, auto insurance, and bundled policies in major Texas cities: