Updated October 2026. This guide replaces the 2025 price estimates in the original version with figures from the National Association of Insurance Commissioners (NAIC), the Bureau of Labor Statistics (BLS), and the Arizona Department of Insurance and Financial Institutions (DIFI). The figures are statewide or national averages, not quotes.
A home and auto insurance bundle means buying both policies from the same insurer, which may qualify Tempe households for a multi-policy discount. Whether a bundle costs less depends on the insurer, the home and vehicles insured, and how each policy is priced on its own, so it helps to compare both ways.
Key Points
- Many insurers offer a multi-policy discount for a home and auto insurance bundle, and DIFI lists bundling home and auto among potential discounts; the amount varies by insurer (DIFI).
- Nationally, the BLS motor vehicle insurance index fell 5.1% over the 12 months ending August 2026, while the index for motor vehicle maintenance and repair rose 5.2% (BLS).
- Arizona’s combined average auto premium (liability, collision, and comprehensive) was $1,647.25 per insured vehicle in 2024, up from $1,504.87 in 2023 (NAIC).
- Arizona’s average premium for the standard HO-3 homeowners policy was $1,194 in 2023 data, compared with $1,737 nationally; averages are not quotes (NAIC).
- DIFI says homeowners premiums are increasing across Arizona, not only in wildfire-prone areas (DIFI).
- Arizona requires auto liability of at least $25,000 per person and $50,000 per accident for bodily injury, plus $15,000 for property damage (ADOT).
What Is a Home and Auto Insurance Bundle?
A home and auto insurance bundle, also called a multi-policy arrangement, puts your homeowners and auto policies with one insurer, usually with one agent as your point of contact. Many insurers offer a discount for it, and DIFI lists bundling home and auto among the potential discounts Arizona homeowners can ask about.
A bundle isn’t automatically the lower price. The discount applies to that insurer’s own rates, so a bundle can still cost more than two policies priced separately. Coverage limits, deductibles, and exclusions also vary from policy to policy, so it helps to compare the coverage as well as the total.
What Has Changed With Arizona Car Insurance Rates?
National and Arizona data point in different directions. The BLS motor vehicle insurance index fell 5.1% over the 12 months ending August 2026, while the index for motor vehicle maintenance and repair rose 5.2% and prices overall rose 3.4% (BLS). That is a national price index, not what any one household pays.
In Arizona, NAIC reports a combined average auto premium of $1,647.25 per insured vehicle in 2024, up from $1,504.87 in 2023. That figure adds the average liability, collision, and comprehensive premiums, and it blends every kind of driver, vehicle, and coverage level, so a quote for car insurance in Tempe, AZ can be higher or lower.
What Is Happening With Arizona Home Insurance Rates?
NAIC’s most recent homeowners report puts Arizona’s average premium for the standard HO-3 policy at $1,194 in 2023 data, compared with $1,737 nationally. NAIC cautions that average premium is an imperfect measure of price because it reflects every amount of insurance, deductible, and location in a state.
DIFI says premiums are increasing across Arizona, not only in wildfire-prone areas, and that as the market tightens, homeowners insurance may be better suited to catastrophic events than to small, manageable repairs. The NAIC and DIFI figures here are statewide, so they aren’t specific to Tempe.
What Affects Home and Auto Premiums in Tempe?
Home insurance pricing commonly reflects:
- Replacement cost, age, construction, and roof type and condition
- The amount of insurance and deductible selected, and claims history
- Fire protection: insurers use classification systems that measure response times and the distance to fire stations and hydrants (NAIC)
- Features such as wood-burning fireplaces, multi-car garages, and wooden decks, which NAIC notes can raise the cost to insure a home
Auto insurance pricing commonly reflects:
- Each driver’s record, age, and how the vehicle is used
- Vehicle type, repair costs, and theft rates
- Coverage types, limits, and deductibles
- Where the vehicle is driven and parked, accident rates, and traffic density, which NAIC lists among the factors behind state-to-state differences
Which Discounts May Be Available Beyond Bundling?
- Protective devices: NAIC notes that security systems and fire detection devices often qualify a home for premium discounts.
- Mitigation credits: DIFI encourages homeowners to reduce risk around the home and says insurers may recognize mitigation efforts, so it can help to ask what your insurer credits.
- Usage-based and safe-driver programs: availability, requirements, and amounts vary by insurer.
- Other multi-policy combinations: some insurers also discount umbrella, motorcycle, or RV policies when combined with home or auto.
When Do Households Compare Home and Auto Options?
Common points to compare include renewal, buying or selling a home, adding a teen driver or a vehicle, replacing a roof, getting married or moving, and any large change in either premium. Starting before your renewal date leaves time to review options without a gap in coverage. An Insurance Specialist can compare a home and auto insurance bundle with separate policies across multiple carriers.
How Do Liability Limits and Umbrella Coverage Fit In?
Arizona requires auto liability of at least $25,000 per person and $50,000 per accident for bodily injury, plus $15,000 for property damage (ADOT). Those limits are floors, and a serious accident can cost more than they pay. Umbrella coverage may add liability limits above the underlying home and auto policies, subject to policy terms. Our guide to personal umbrella insurance explains how it works.
Want to See How a Bundle Compares?
Curious how a bundle compares with separate policies? Talk with an Insurance Specialist in Inszone’s Tempe office.
Frequently Asked Questions
Is bundling home and auto insurance worth it?
It depends on the insurer and on how each policy is priced on its own. Bundling may lower the price of one or both policies because many insurers offer a multi-policy discount, and DIFI lists bundling among potential discounts for Arizona homeowners. The amount varies by insurer, and a discount doesn’t mean the bundled total is lower than buying each policy separately. An Insurance Specialist can compare bundled and separate pricing across multiple carriers.
How much can I save by bundling home and auto insurance in Arizona?
There’s no single figure. Discounts differ by insurer, by the policies bundled, and by each household’s rating details, and published percentages vary widely. A quote shows the actual discount for your home, vehicles, and drivers.
Does bundling cost less than keeping separate policies?
It depends on how each policy is priced on its own. A bundle may cost less overall, but sometimes one insurer’s home price or another insurer’s auto price is low enough that separate policies cost less. Comparing both approaches, along with coverage limits, deductibles, and exclusions, shows the difference.
What are Arizona’s minimum auto insurance requirements?
Arizona requires liability coverage of at least $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people, and $15,000 for property damage (ADOT). These are legal minimums and may not cover the costs of a serious accident, so many households ask an Insurance Specialist about higher limits.
Are car insurance prices going up or down?
Nationally, the BLS motor vehicle insurance index was down 5.1% for the 12 months ending August 2026, while repair prices rose 5.2% (BLS). That index measures national prices, and Arizona can differ: NAIC data show the state’s combined average auto premium rose from $1,504.87 in 2023 to $1,647.25 in 2024. An individual rate depends on drivers, vehicles, driving record, and coverage.
Does homeowners insurance cover flood damage in Tempe?
Standard homeowners forms such as the HO-3 generally cover direct losses except those the policy excludes, and NAIC lists flood as an example of a commonly excluded cause. Separate flood coverage may be available, and the policy wording controls what is covered, so an Insurance Specialist can review how flood and monsoon-related losses may be handled.
Where can I get a home and auto bundle quote in Tempe?
Inszone’s Tempe office at 1231 W Warner Rd, Suite 104 works with multiple carriers and can compare home and auto bundle options. Call 480-961-0101 to talk with an Insurance Specialist.
Sources
- NAIC — 2024 Auto Insurance Database Average Premium Supplement (Sept. 2026)
- NAIC — Homeowners Insurance Report: Data for 2023 (July 2026)
- U.S. Bureau of Labor Statistics — Consumer Price Index, August 2026
- U.S. Bureau of Labor Statistics — CPI Table 1, by expenditure category, August 2026
- Arizona DIFI — Homeowners Insurance consumer information
- Arizona DIFI — Homeowners Insurance handout (discounts, mitigation)
- Arizona Department of Transportation — What is “mandatory insurance”?
Brenda Luna
