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By Martha C. White
September 21, 2016

Combining policies or “bundling” is a tactic insurance salespeople tout as a way for customers to save money, but exactly how much you can save depends a lot on where you live and whether you own or rent your home, new research shows.

According to new data from InsuranceQuotes.com, you can get an average discount of 16% if you combine auto and homeowner’s insurance under the same umbrella. But you can expect only half those savings if you’re just a renter looking to combine your renter’s insurance with car insurance.

Homeowners in Illinois can shave an average of 23% off their combined premium if they bundle auto and homeowner’s policies, but it’s not nearly as big a deal for Florida residents: They score a discount of just 7%.

The other big geographical difference that factors into the equation is what insurance rates are like in your state in the first place.

In Louisiana, for instance, homeowners paying separately for auto and home insurance pay nearly $3,000. So even though their discount is a little below 20%—not far from the national average—because rates are so high, this translates to a savings of $584 a year. Other places where rates are highest include Louisiana neighbors Texas and Mississippi and nearby Oklahoma and Kansas.

In places like Vermont, though, where the average total premium for both policies is less than half of what Louisiana homeowners pay, the savings add up to less than $200.

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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