You’re paying for home insurance, car insurance, and maybe contents cover too. That’s three separate premiums, three renewal dates, and a lot of paperwork to track. Managing multiple policies gets expensive and complicated fast.
Bundling insurance sounds like an easy fix. You combine your policies with one insurer, get a discount, and simplify everything. But does it actually save you money? Or are you just locking yourself into a deal that looks better than it is?
This guide shows you how to bundle home and car insurance in Australia, what savings you can expect, and when keeping separate policies makes more sense. You’ll see real examples and learn how to compare properly.
What Insurance Bundling Actually Means
Insurance bundling means you hold multiple policies with the same insurer. Instead of buying your home insurance from one company and your car insurance from another, you get both from the same provider.
Most Australian insurers call this a multi-policy discount. You might combine home and car insurance, or add contents insurance to the mix. Some people bundle car insurance for two vehicles, or combine landlord insurance with their personal policies.
Insurers like bundling because it’s cheaper for them to manage. They process one customer relationship instead of several. They save on marketing costs because they don’t need to win you over separately for each policy. These savings get passed to you as a discount, usually between 5% and 25% off your total premiums.
The actual discount depends on which insurer you choose and how many policies you bundle. Some providers offer flat percentage discounts. Others give you a dollar amount off your second or third policy.
Why Multi-Policy Households Choose Bundling
Most people bundle because it’s convenient. You get one renewal date, one bill, and one company to call when something goes wrong. You don’t need to remember which insurer covers what or juggle payment dates across three different providers.
The financial benefit matters too. A 15% discount on a $2,000 home insurance premium saves you $300 per year. Add that to savings on your car insurance, and the total adds up quickly.
If something major happens, like a storm that damages both your home and car, you only deal with one claims team. They coordinate everything. You don’t need to explain the situation twice or wait for two separate assessors to visit your property.
Some insurers also reward loyalty. After a few years with bundled policies, you might qualify for additional no-claim bonuses or reduced excesses. These perks stack on top of your multi-policy discount.
Real Savings Scenarios from Australian Households
A Sydney family with a mortgaged home, two cars, and contents insurance was paying around $3,200 per year across three separate insurers. They bundled everything with one provider and received a 12% multi-policy discount. Their new total was $2,816 annually. That’s $384 saved every year without changing their coverage levels.
A retired couple in Adelaide had two cars and a fully owned home. They were paying $1,800 for home insurance and $1,400 combined for both car policies. By bundling all three with the same insurer, they got a 15% discount on the total. Their annual saving came to $480, plus they simplified their finances ahead of retirement.
A couple in regional Victoria owned a home in a bushfire-prone area. Their home insurance was expensive at $2,400 per year. When they added their car insurance to the same policy, they received a 10% discount on the car premium only. They saved $120 annually, which was helpful but not dramatic. Their home insurance stayed high due to location risk.
Your savings depend on your base premiums, the insurer’s discount structure, and your risk profile. Higher premiums mean bigger dollar savings from percentage discounts. Lower-risk customers tend to see better bundling deals.
When Keeping Separate Policies Makes More Sense
Not every bundled deal saves you money. Some insurers offer small discounts that don’t beat the cheapest standalone policies. You might get 10% off bundled policies that were already overpriced.
If one of your assets is high-risk, like a car with a modified engine or a home in a flood zone, bundling might limit your options. Specialist insurers often provide better coverage and pricing for unique situations. A general insurer offering a bundle discount might not compete with a specialist’s expertise.
Bundling can also create a loyalty trap. You stick with one insurer year after year because switching feels complicated. Meanwhile, premiums creep up at renewal time. Other insurers might offer better rates, but you don’t check because everything’s in one place.
Some bundled policies come with higher excesses or reduced coverage limits. The discount looks attractive, but you’re actually getting less protection. Always read the product disclosure statement before committing.
If you have a poor claims history on one policy, bundling might increase premiums on your other policies too. Insurers view your overall risk profile, not just individual policies.
How to Compare Bundled and Standalone Policies Properly
Start by calculating your total annual cost for separate policies. Add up every premium you currently pay for home, car, and contents insurance. That’s your baseline.
Next, get bundling quotes from at least three insurers. Ask for the exact discount percentage and the final premium for each policy. Don’t just look at the discount rate. A 20% discount on an expensive policy might cost more than a 10% discount on a cheaper one.
Compare excesses carefully. Bundled policies sometimes increase your excess amounts to offset the discount. If your home insurance excess jumps from $500 to $1,000, you need to factor that into your decision.
Check what’s actually covered. Some insurers reduce coverage limits or exclude certain benefits when you bundle. Make sure you’re comparing equivalent protection, not just price.
Use comparison websites like Canstar, Finder, or Compare the Market. These tools show you multiple quotes side by side. You can also speak with an insurance broker who works with several providers. Brokers often spot deals you’d miss on your own.
Review your situation every year at renewal time. Insurers change their pricing and discount structures regularly. What worked last year might not be the best option now.
Additional Ways to Cut Your Insurance Costs
Increasing your excess reduces your premium immediately. If you can afford to pay $1,000 instead of $500 when you claim, your annual premium drops. Just make sure you have enough savings to cover the higher excess if something happens.
Install security systems at home and maintain a clean driving record. Insurers reward lower risk with lower premiums. Deadlocks, alarm systems, and secure parking for your car all help. Some insurers offer specific discounts for these features.
Pay annually instead of monthly. Monthly payment plans often include interest or admin fees. Paying the full premium upfront saves you those extra charges.
Build your no-claim bonus. Every year without a claim typically earns you a discount on future premiums. Some insurers offer up to 60% off after several claim-free years.
Review your coverage limits honestly. You might be over-insured for contents you no longer own or a car that’s depreciated significantly. Adjusting your sum insured to match current values reduces premiums without sacrificing necessary protection.
Making the Bundle Decision Work for You
Bundling your home and car insurance in Australia can save you hundreds of dollars every year if you choose carefully. The convenience of managing one relationship with one insurer adds value beyond just the discount.
But bundling isn’t automatically cheaper. You need to compare total costs, not just discount percentages. Check that your coverage stays strong and your excesses remain reasonable. Don’t let a bundling discount trap you into staying with an insurer that raises premiums over time.
Before your next renewal, get quotes from multiple providers. Compare bundled and standalone options side by side. Look at what you’re actually getting for your money, not just the headline discount.
If bundling saves you money without compromising coverage, it’s a smart choice. If it doesn’t, keep shopping around. Your goal is the best protection at the best price, whether that comes from one insurer or several.
FAQs
Can I bundle my car insurance with my landlord insurance in Australia?
Yes, many insurers let you combine landlord, car, and contents insurance for multi-policy discounts.
Does bundling affect how claims are processed if I only claim on one policy?
No, each claim is handled separately, but having one insurer can simplify communication.
Are there any hidden fees when bundling insurance policies?
Usually not, but always check the product disclosure statement for admin or cancellation fees.
Can I still switch insurers if my policies are bundled?
Yes, you can cancel or move one or all policies anytime—just check for cancellation terms.
Do all insurers in Australia offer bundling discounts?
No, but most major insurers like AAMI, Allianz, and NRMA provide bundle savings for multi-policy holders.
