Industry studies consistently show that bundling—purchasing auto and homeowners coverage from a single carrier—yields premium reductions typically ranging from 5% to 25%. This variance depends heavily on the carrier’s specific actuarial models. Insurers prioritize these multi-line customers because statistical data demonstrates they have higher retention rates than single-policy holders. Consequently, providers are willing to subsidize the cost of the policies to secure a long-term client relationship, reducing their customer acquisition costs over time.
Industry studies consistently show that bundling—purchasing auto and homeowners coverage from a single carrier—yields premium reductions typically ranging from 5% to 25%. This variance depends heavily on the carrier’s specific actuarial models. Insurers prioritize these multi-line customers because statistical data demonstrates they have higher retention rates than single-policy holders. Consequently, providers are willing to subsidize the cost of the policies to secure a long-term client relationship, reducing their customer acquisition costs over time.