Does owning a home affect auto insurance rates? (2024)
Owning a home may affect auto insurance rates if you qualify for bundling discounts and have good credit. Homeowners who bundle auto and home insurance save up to 25% on their car insurance. Below, we'll help you learn whether car insurance is cheaper if you own a home and find the best homeowner car insurance.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
Licensed Insurance Agent
UPDATED: Mar 18, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Owning a home is tied to your credit, which could impact your premiums
- Homeowners may also qualify for bundling discounts to save on coverage
- The most important factors that influence car insurance rates are within your control
While owning a home won’t directly impact your auto insurance rates, it may qualify you for certain auto insurance discounts. In addition, since your credit score impacts your ability to qualify for a home mortgage, homeowners with good credit may see better rates.
Finding the best insurance requires considering your level of risk and then finding the right type of auto insurance to cover your level of risk at the best cost. Keep reading to understand more about whether car insurance is cheaper for homeowners.
How Homeownership Affects Auto Insurance Rates
While owning your home does not directly affect your car insurance rates or ability to qualify for auto insurance, it may strengthen your credibility as an applicant when you shop for insurance.
During the quote process which you can do on our site, you can tell the insurance representative that you own your home and ask if there are any discounts for homeowners. Some companies may offer this as an extra perk for those who are homeowners.
Owning a home may also allow you to save money by bundling insurance policies if you carry home and auto insurance with the same provider. Learn more about the best companies for bundling home and auto insurance to see how you can get cheaper homeowner auto insurance rates.
Since owning a home requires good credit and credit impacts your rates, you'll likely see more affordable homeowner car insurance rates with good credit.Eric Stauffer Licensed Insurance Agent
Check out the table below to see how your credit rating affects your car insurance rates:
Insurance Company | Good Credit | Fair Credit | Poor Credit |
---|---|---|---|
Allstate | $322 | $382 | $541 |
American Family | $224 | $264 | $372 |
Farmers | $306 | $325 | $405 |
Geico | $203 | $249 | $355 |
Liberty Mutual | $366 | $467 | $734 |
Nationwide | $244 | $271 | $340 |
Progressive | $302 | $330 | $395 |
State Farm | $181 | $238 | $413 |
Travelers | $338 | $362 | $430 |
USAA | $152 | $185 | $308 |
If you show that you’re faithful to pay your bills promptly, this will also go in your favor. It’s important to know how to correctly read a driving record so that you will know what to look for when comparing your policy quotes.
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Ways to Save on Auto Insurance Coverage
While being a homeowner won’t lower your car insurance rates, there are many mays to get cheaper rates.
Qualify for Discounts
Another way that you can save money on car insurance is to qualify for discounts. While you are shopping for car insurance, you may want to see if you qualify for discounts. Some discounts are related to the following:
- your job status
- your military status
- your safe driving history
You can use some of the things that you have done to get discounts on your insurance.
Take a Defensive Driving Course
Sometimes taking an extra step will help you to get better rates. For example, have you ever considered taking a defensive driving course to get your rates down? Look online for opportunities to take a defensive driving course to improve your rates.
Many insurance companies offer specific discounts for people who have successfully completed a course that proves they understand the regulations and are conscious of what constitutes good driving habits.
Read More: How to Get a Defensive Driver Auto Insurance Discount
Know Your Status
The key to saving the most money possible on your car insurance is to know the factors that you can control and what your status is regarding these factors. For example, if you’re a safe driver, keep your driving record clean so that you can get the best rates and continue to save on your car insurance.
Check out the list of factors below to see how else insurers calculate your rates:
- Demographics: There are some demographic factors such as age, marital status, and location. These are not things that you can usually control.
- Car make and model: Your car make and model are highly influential in terms of determining your insurance costs. If you have a new car, you will pay more than if you have an older car. But there are exceptions to this, such as with some of the more popular sports models or classic cars. (Read More: Compare Auto Insurance Rates by Vehicle Make and Model)
- Driving record: Your driving record is the most important factor that you can control. By protecting your driving record, you are taking positive steps to keep your driving record intact and controlling your premium rates. See how you can find cheap auto insurance for a bad driving record here.
- Types of coverage: You should think about the types of coverage you want on your policy as you shop for car insurance. While liability is required in most states, there are many optional coverages that you should consider such as collision coverage, comprehensive, and roadside assistance, to name a few.
- Location: Your state of residence is a determining factor in your car insurance costs as well as the types of coverage that are required in your state. Some states require personal injury protection (PIP) auto insurance while others require uninsured motorist coverage instead. Know your state regulations regarding insurance to understand what you need to look for.
If your driving record isn’t as perfect, work to remove those points that you have accumulated due to mistakes that you may have made in the past.
Finding the Best Homeowner Auto Insurance Rates
While being a homeowner won’t directly affect auto insurance rates, other related factors, such as credit and discount eligibility, may help you get affordable coverage.
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— AutoInsurance.org (@AutoInsurance) August 4, 2023
When you’re ready to begin shopping for the cheapest homeowner car insurance coverage, enter your ZIP code into our free quote comparison tool below.
Frequently Asked Questions
How does owning a home affect auto insurance rates?
Owning a home can potentially have an impact on your auto insurance rates. Insurance companies often consider homeownership as a factor when determining auto insurance premiums. Generally, homeowners are perceived as more responsible and stable individuals, which can translate into lower risk for insurers. As a result, homeowners may qualify for certain discounts or receive more favorable rates compared to non-homeowners.
Does owning a home lower car insurance?
Owning a home does not guarantee an automatic decrease in your auto insurance rates. While homeownership can be a positive factor in determining your premiums, insurance companies take various other factors into account when calculating rates. These factors may include your driving history, the type of vehicle you own, your age, and your location, among others. Therefore, the impact of homeownership on your auto insurance rates will depend on the specific policies and criteria of your insurance provider.
Are there specific discounts for homeowners on auto insurance?
Yes, many insurance companies offer specific discounts for homeowners on their auto insurance policies. These discounts are often referred to as “homeownership discounts” or “bundling discounts.” By combining your home and auto insurance policies with the same insurance company, you may be eligible for a discounted rate. This can result in savings on both your home and auto insurance premiums. However, it’s important to compare rates and policies from multiple insurance providers to ensure you’re getting the best possible deal.
Can non-homeowners still get affordable auto insurance rates?
Yes, non-homeowners can still obtain affordable auto insurance rates. While homeownership can be a positive factor, insurance companies consider various other elements when determining premiums. Factors such as your driving record, the type of vehicle you drive, your age, your location, and even your credit history can all play a role in the cost of your auto insurance. By maintaining a good driving record, shopping around for competitive quotes, and exploring discounts for which you may be eligible, you can find affordable auto insurance coverage, irrespective of homeownership status.
Should I inform my insurance company if I become a homeowner?
Yes, it’s important to inform your insurance company if you become a homeowner. Your homeownership status may affect your eligibility for certain discounts or policy options. By updating your insurance provider about your change in status, they can accurately assess your risk profile and potentially adjust your rates accordingly. Failing to inform your insurer about homeownership may lead to discrepancies between your coverage and the information they have on file, which could impact the validity of your policy in the event of a claim.
How does my credit score affect my car insurance rates?
One factor that is indirectly related to home ownership is your credit score.
Many people who own their homes have an excellent credit score. They wouldn’t have been approved for a home loan without it. So, buying a home is a sign that you have taken care to stay on top of your mortgage payments and maintain a good credit score.
Read More: How Credit Scores Affect Auto Insurance Rates
In this way, home ownership and credit is indirectly related to your premiums and the level at which insurance companies are willing to trust you.
Is renting or owning a home better for car insurance?
While renters may not qualify for certain homeownership discounts from some auto insurers, they can still bundle their renters and auto insurance. However, the impact of owning a home vs. renting depends on your insurer and driving record.
Why do car insurance companies ask if you’re a homeowner?
Insurance companies may ask if you’re a homeowner to assess risk, since homeowners are perceived as low-risk drivers compared to renters. You may also qualify for certain discounts.
Why does car insurance need to know who you live with?
Auto insurance companies will likely ask about any people you live with since they may have access to your vehicle.
Is it a good idea to combine home and auto insurance?
Yes, it’s usually best to bundle your home and auto insurance to maximize savings, since policy bundling qualifies you for discounts.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.