Home Protection Basics

Simple home security, safety, and insurance guides for normal homeowners.

Discounts and Bundling Basics

Insurance companies sell discounts the same way grocery stores sell “deals”—most look good, but only a few actually move the needle. Bundling can save real money, but only under the right conditions. This guide cuts out the fluff and shows you what genuinely lowers your bill and what’s just marketing noise.

If you don’t understand how your premium is calculated in the first place, review how premiums are calculated. Discounts make more sense once you know what the insurer’s pricing model looks like.

1. Bundling: The Only Reliable Discount

Bundling home + auto (or home + another major policy) is the single biggest and most consistent discount you can get.

Bundling doesn’t always guarantee the lowest price, but it gives you leverage when comparing quotes.

2. Security and Safety Device Discounts

These discounts are small individually, but they stack well—especially if you already use smart-home devices.

If you’re upgrading for insurance reasons, see wireless vs wired systems for actual hardware insight—not just insurer buzzwords.

3. New Home or Renovated Home Discounts

Insurers love newer homes because they fail less often. The same goes for homes with major recent upgrades.

If you recently renovated, pair this with home upgrades that affect premiums.

4. Claims-Free Discounts

These discounts reward homeowners who haven’t filed claims in several years. They’re typically 5–20% depending on the insurer.

If you’re debating a small claim, read claims vs premium impact first—you might regret filing it.

5. Loyalty Discounts

These exist, but they’re weak compared to others. Loyalty is worth maybe 2–5% unless paired with bundling.

The real benefit is not savings—it’s better treatment at renewal because you’re less likely to switch carriers.

6. Credit-Based Discounts

Insurers use an insurance-specific credit score in most states. Better score = better pricing.

These aren’t labeled as “discounts,” but they act like one by lowering your base premium.

7. Multi-Policy and Specialty Discounts

These vary but often bump savings another 5–10%.

8. Discounts That Don’t Matter Much

These look good on paper but usually only shave off a few dollars.

They’re fine—but they won’t move your bill in any meaningful way.

9. The Discount Trap: Sacrificing Coverage

The worst mistake homeowners make is chasing a lower premium by weakening the policy.

Discounts should never weaken your protection. You want the best price for proper coverage—not the worst coverage at a cheap price.