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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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
UPDATED: Sep 5, 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: Sep 5, 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
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.
- 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
How Does Being a Homeowner Affect Car Insurance
Does owning your own home affect car insurance? 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 homeowners insurance discounts. 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 home and car insurance bundle companies to see how you can get cheaper home and car 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 and home insurance quotes.
Full Coverage Auto Insurance Monthly Rates by Credit Rating
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 owning a home does not make car insurance cheaper, 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 Car 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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When you’re ready to begin shopping for the cheapest home and auto 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?
So, does being a homeowner reduce car 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 for cheap home and car insurance or receive more favorable rates compared to non-homeowners.
Is car insurance cheaper if your a homeowner?
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. Compare home and auto insurance today!
Are there specific discounts for affordable auto and home 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 “auto and home insurance bundle discounts.”
By having home and car insurance combined with the same insurance company, you may be eligible for a discounted rate. This can result in savings on both your home and car insurance premiums. However, it’s important to compare car and home insurance 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 car and house insurance 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 house and car insurance?
Yes, it’s usually best to bundle your home and auto insurance to maximize savings, since policy bundling qualifies you for discounts.
Why do car insurance companies ask if you are a homeowner?
Homeownership is often associated with financial stability. Insurers may view homeowners as more financially responsible and less likely to file claims for minor incidents.
Can I get an insurance quote before buying a house?
It’s often a good idea to obtain insurance quotes early in the home buying process so you can factor the cost of insurance into your budget.
Does car ownership affect insurance?
Wondering if car insurance is cheaper when you own the car? If you own your car outright (i.e., you’ve paid off the loan and hold the title), you may have more flexibility in choosing your insurance coverage and deductible, which may result in lower insurance premiums. So, yes, if you own your car, your insurance can go down.
Does the value of your home affect car insurance?
The value of your home typically doesn’t directly affect your car insurance premiums. However, homeownership status can indirectly impact your car insurance rates.
Is car insurance more expensive than home insurance?
Usually, homeowners insurance costs less than auto insurance. Compare home and auto quotes from multiple home and auto insurance companies near you to find the best coverage.
How to choose auto and home insurance?
Wondering how to shop for home and auto insurance? For auto insurance, determine how much coverage you need based on your vehicle’s value, your driving habits, and your financial situation. For home insurance, determine the replacement cost of your home, not just its market value, to know how much coverage you need.
Knowing how to buy home and auto insurance ensures that you are adequately protected without overpaying.
Is it cheaper to have home and car insurance together?
Yes, it is typically cheaper to bundle home and car insurance together. can lead to significant savings on your insurance premiums.
Why is car insurance more than home insurance?
According to our house and car insurance comparison, car insurance can sometimes be more expensive than home insurance due to a variety of factors related to risk, cost of claims, and the frequency of accidents.
Is it cheaper to get your own car insurance?
It would be far cheaper to be added to someone else’s policy than to obtain one of your own. The primary policyholder likely has a longer insurance history and possibly a better credit score, which can result in lower rates.
What are the 10 factors that cause your insurance rate to go down?
Here are some factors that affect car insurance rates:
- Age and Experience
- Improved Credit Score
- Clean Driving History
- Completing a Defensive Driving Course
- Reducing your level of coverage
- Switching to a cheaper car
- Marital Status
- Homeownership
- Location
- Loyalty and Bundling Discounts
How can you decrease your insurance rates?
Some effective methods to potentially lower both home and auto insurance quotes:
- Shop Around
- Increase Your Deductibles
- Maintain a Good Driving Record
- Take Defensive Driving Courses
- Reduce Coverage on Older Cars
- Drive Less
- Improve Your Credit Score
- Look for Discounts
- Bundle Insurance Policies
How can the location of a home affect insurance costs?
The location of a home affects insurance costs due to several location-specific risks and factors, including:
- Crime Rates
- Weather Risks
- Proximity to Fire Services
- Local Building Costs
- Regulatory Environment
- Flood Risk
- Earthquake Risk
- Overall Economic Environment
Does the type of car affect insurance rates?
More expensive cars typically cost more to insure because they can be more costly to repair or replace. High-end luxury cars and sports cars usually have higher premiums.
Does buying a house affect buying a car?
Taking out a mortgage to buy a house can affect your credit score. When you apply for a car loan, lenders look at your credit history. A recent mortgage could temporarily lower your score due to the large debt incurred, potentially affecting the interest rates you receive on a car loan.
In addition, even though car insurance and buying a house are considered separate financial responsibilities, both car insurance rates and mortgage approvals involve credit checks in many cases. Your credit score can influence your premiums as well as your eligibility for a mortgage and the terms you might receive.
What is the best insurance company for a house and car?
Some of the best home and auto insurance companies are American Family, State Farm, Nationwide, Auto-Owners, Erie, and Farmers.
Does being a homeowner reduce car insurance in Texas?
Insurance companies are looking to see if you are being a homeowner so you can bundle both insurance for a house and a car.
Does the cost of a claim affect insurance?
When an insured party files a claim, the insurer must pay out to cover the damages or losses specified under the policy. After a claim, insurance premiums may increase because insurers often view a recent claim as an indicator of increased risk.
Does gender affect car insurance?
Yes, gender can affect car insurance rates. Young male drivers are more likely to engage in risky driving behaviors than their female counterparts, leading to a higher incidence of accidents and traffic violations. Consequently, young male drivers might face higher insurance premiums.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
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.