In a recent JD Power Insurance Intelligence podcast, hosted by Michael Vermillion, three JD Power leaders, Steve Kruen, Craig Martin, and Mark Garrett, unpack what “bundling” really means today, why it still matters, and how the dynamics are changing for consumers and carriers.
What “Bundling” Means — And Why Auto + Home Is the Classic Pair
When insurers talk about bundling, they often start from the auto policy and ask what else can be placed with it. As Kruen explains, the primary add-on is homeowners insurance, and that duo delivers the biggest lift in retention. Martin notes that among homeowners, bundling with auto is the norm — more than seven in ten homeowners say they bundle those two policies. Other lines can also bundle (life, pet, etc.), but auto + home remains the peanut-butter-and-jelly combo.
Why Consumers Like Bundling
From the customer’s vantage point, bundling has long been a win:
• You usually pay less overall thanks to multi-policy discounts.
• You deal with one insurer instead of juggling multiple companies.
• In a severe weather event, one point of contact can streamline claims, and some carriers even offer a combined deductible for related home and auto losses, as Garrett points out.
A twist — usage-based insurance (UBI) is changing the calculus. Kruen says some shoppers now get bigger savings by placing auto with a UBI-friendly carrier and home with a different insurer that prices the property risk more attractively. In short, UBI can unbundle the traditional package when it saves more.
Why Carriers Push Bundling
Bundled households tend to be stickier, higher-lifetime-value customers. Carriers like the cross-sell, the broader relationship, and — especially in recent years — the relative profitability of auto next to property. Historically, home has trended toward “loss leader” in certain markets, so pairing it with auto helps the overall economics. Dynamics continue to shift by line and geography.
The Surprising Trend Line — Bundling Is Down Among Auto Customers
Looking at the auto book specifically, Kruen flags a long slide: nearly a decade ago, close to 60% of auto customers also held a homeowners policy with the same carrier. By 2025, that figure is about 38%. That’s roughly a 20-point drop — about one-third fewer auto customers are bundled with home than a decade ago.
Why the decline? Several forces:
• UBI optimization — shoppers split policies to chase best-available discounts.
• Availability constraints — in states like California, Florida, and Texas, some carriers won’t write new home policies or non-renew in higher-risk areas, forcing customers to split carriers even if they prefer to bundle.
• Premium pressure — double-digit homeowners increases across many states nudge consumers to shop. When a bundled customer moves, they often move both policies to keep convenience and re-secure a discount.
• Demographics and billing — older consumers who pay homeowners directly (not via escrow) tend to notice increases sooner and shop faster, as Martin and Kruen note. Younger homeowners paying through escrow often feel the change later when the servicer flags the driver of the higher mortgage payment.
Will Bundling Survive? Yes — But It’s Evolving
Don’t count bundling out. Marketing from big brands still leans hard into multi-policy because the retention math works. Think of auto like a six-month subscription — every renewal is a chance to churn or stay. A bundle raises the odds of renewal and lowers pure price sensitivity.
At the same time, innovation is reshaping what “bundle” means:
• Embedded and point-of-sale insurance — buying a car that comes with insurance and maintenance in one payment feels like a bundle to the customer, even if it departs from the classic P&C pair. Martin calls this an emerging trend worth watching.
• Personalization — better data lets carriers pitch adjacent coverages and non-insurance perks that add value and stickiness over time, Garrett notes.
The Carrier Playbook — What Smart Teams Do Now
Key moves drawn from the panel:
• Don’t sleep on home. You might hold auto flat while taking rate on property, but customers feel the combined out-of-pocket. If home shocks the bill, you risk losing both lines.
• Compete on experience — early. If you want the high-value, multi-line household, prove it in the shopping journey. Kruen points to JD Power data showing service often doesn’t improve when the prospect is more valuable — a missed opportunity for differentiation.
• Deliver when it counts. Claims remain the moment of truth. Martin highlights the strong correlation between a great claims experience and higher intent to renew, especially with younger customers.
• Acknowledge UBI realities. Some households will optimize by splitting lines. Stay UBI-competitive on auto, and keep property pricing and communication transparent so multi-line still feels like the best net deal.
• Tailor, bundle, and broaden value. Use data to curate the right add-ons — from smart-home partnerships to lifestyle benefits — that make staying bundled feel smarter than shopping.
Bottom Line
Bundling still benefits consumers through convenience and savings, and it still benefits carriers through retention and relationship depth. But availability constraints, homeowners inflation, and UBI-driven shopping have pushed more households to unbundle in recent years. The winners will re-earn the bundle by competing on total value and experience — from the first quote to the final claim.
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