Best Home And Auto Insurance In California 2025

Bundling discounts, called multi policy discounts, offer the biggest discounts on home and auto premiums saving an average of $460 per year for new policyholders in California. This can be a critical figure given the rising increase in premiums across the state due to extreme weather events and higher risks.

Finding the right discounts can help you make sure you have the coverage you need.

Best Home And Auto Insurance Bundles In California

State Farm provides the top home and auto insurance in California, at an average annual premium of $2,380.

Cheapest Home And Auto Bundles In California

If you’re looking to save the most by bundling your home and auto insurance in California, Allstate offers the most affordable option, with an average annual premium of $1,892.

Here’s how the top providers compare:

Average Cost Of Home And Auto Insurance In California

The average annual cost of home and auto insurance in California is $2,453, which is $1,597 lower than the national average of $4,050.

Home And Auto Insurance Rates In California Without Bundling

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 California is:

• Auto insurance from Mercury
• Home insurance from Allstate

This combo results in an average annual premium of $2,740.

Here’s how other non-bundled combinations compare:

Biggest Home And Auto Bundle Discounts In California

The biggest home and auto bundle discounts though are offered by:

• State Farm: Allstate has the highest discounts in the state offering 26% off home and auto bundles in California.
• Allstate: Allstate provides California residents with a home and auto bundle discount of 20%.
• Travelers: Travelers gives an average of 11%.
• USAA: California residents can get a 10% discount on average from USAA.
• Progressive: Progressive offers discounts of 9%.

When To Consider Bundling Your California Insurance

There are a few times to consider bundling your California insurance.

To Get Savings

The biggest benefit obviously comes from the savings including:

1. The discount for bundling
2. The savings from one deductible in an event that affects home and auto
3. The savings from 12-month car insurance policies instead of 6-month policies

It’s important to compare not just the percentage you get in terms of your discounts but what your premiums are for the coverage you get.

For example:

Travelers charges $1,995 for homeowners insurance and $1,735 for car insurance equaling $3,730 each year in separate policy premiums. With the 11% discount, you might pay around $3,320 each year instead.

By comparison, State Farm which has the highest discounts might charge $2,080 on average for your homeowners insurance premium and $1,790 on average for your car insurance premium equaling $3,870 per year. With a 26% discount that still brings the annual costs to around $2,865.

So California residents can get the biggest discount and savings from State Farm.

To Get Support

Another time to consider bundling your California insurance is when you want to get better support. It can be much easier to manage multiple insurance products like boat insurance, homeowners insurance, and car insurance from a single location, through a single agent, and with a single insurance portal.

When Not To Consider Bundling Your Insurance In California

There are two key drawbacks to bundling your insurance in California: you may not find the specialized coverage you need and you might not get savings as high as you would with separate policies.

Specialized Coverage

One of the biggest drawbacks to bundling your insurance in California is that you may not find the type of plan you need. Not all of the same coverage is available under bundled packages and if you find a worthwhile discount from one company, they may not provide the specialized coverage you need for your home.

In California, in particular, there is a need for specialized coverage extending to flood damage and other wildfire incidents. Not all providers who offer bundling discounts will offer that coverage.

Separate Savings

For some people, the savings that are provided by bundling may not be as high as the average across the state. For example, one customer might only save 2% on their current car insurance policy and 12% on their homeowners insurance, but that amounts to a total of 14% in savings whereas keeping separate policies gives them a total of 17% in savings.

There are plenty of ways to get discounts on home or car insurance and shopping around for separate policies might give you a better combination of discounts depending on your circumstances.

Compare Home And Auto Insurance Bundles To Other States