Does owning a home affect car insurance?

Owning a home may affect auto insurance if your insurance company is also your home insurance company and offers discounts for bundling insurance. In general, insurance rates are based on your driving record, the make and model of your vehicle, and your ability to stay on a car insurance policy without gaps in coverage.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 26, 2022

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Things to remember...

  • Car insurance can be a tricky thing when shopping for the best deal
  • Many factors can influence your options and your rates
  • Owning a home is tied to your credit rating, which may have some bearing on your premiums
  • It’s worth looking for and comparing car insurance discounts between companies
  • The most important factors that influence car insurance rates are within your control

Buying insurance can be a challenging process. You want to be able to save as much money as you can while also making sure that you have the right coverage to meet your needs.

Finding the best insurance requires considering your level of risk and then finding the right insurance to cover your level of risk at the best cost.

Some factors influence your insurance rates more than others do. Some of the most important factors are included below:

  • 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.
  • 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.
  • Types of coverage desired– 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.
  • State of residence– 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 while others require uninsured motorist coverage instead. Know your state regulations regarding insurance to understand what you need to look for.

Enter your zip code into our free rate comparison tool to see how much you could save on car insurance coverage.

Home Ownership and 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 discounts for homeowners. Some companies may offer this as an extra perk for those who are homeowners.

In general, insurance rates are based on your driving record, the make and model of your vehicle, and your ability to stay on a car insurance policy without gaps in coverage.

If you show that you are 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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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 would not have been allowed to get 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.

In this way, home ownership and credit is indirectly related to your premiums and the level at which insurance companies (and others) are willing to trust you.

Qualifying 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.

Taking a Safe Driving Course

Sometimes taking an extra step will help you to get better rates. For example, have you ever considered taking a safe driving course to get your rates down? Look online for opportunities to take a safe 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.

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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.

If you are a safe driver, keep your driving record clean so that you can get the best rates and continue to save on your car insurance.

Likewise, if your driving record is not as perfect, you should work to remove those points that you have accumulated due to mistakes that you may have made in the past.

Finding the Best Rates for Coverage

Remember, it’s not just about money. Your best deal may not always be the cheapest one but rather the one that can offer you the best coverage for the amount that you are putting out each month in premiums.

Look around and ask questions when you get your free quote. Think about what is important to you. Work on those factors that you can control.

The value of car insurance is the money it can save you if you have a collision that you won’t have to pay out-of-pocket, not the amount of your premium. And that’s priceless.

Compare car insurance quotes today by entering your zip code below.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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