Is There a Homeowner Discount on Car Insurance?

October 1, 2019

Everyone wants to do what they can to reduce their car insurance premiums, right? Why pay more than necessary? There’s one discount that many people overlook or aren’t aware of – the homeowner discount.

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That’s right, if you own a home, it could save you money on your auto insurance premiums. It may sound too good to be true, but it’s possible.

Why Homeowners Have Lower Car Insurance Premiums

You are probably wondering what the relationship is here. We haven’t talked about yourhomeowner’s insurance, so how can being a homeowner lower your insurance premiums on your car? It’s simple. Homeowners have a certain level of responsibility. That level of responsibility is what insurance companies want to see.

Putting you behind the wheel of a car and insuring the time you spend there is risky business. Anything that can lower your risk of an accident makes insurance companies happy. Responsiblepeople have a lower risk of causing an accident or filing a claim. Insurance companies reward clients with this lower level of risk by providing a discount on their car insurance.

Insurance agents often assume that homeowners are:

  • Financially stable
  • Have good or at least decent credit
  • Have a safe place to store their vehicles

Of course, insurance companies will find out for themselves if all of this is true. For example, you may own a home but have experienced financial issues lately due to an illness or lost job. Or you may own a home but it doesn’t have a large enough garage for all of yourvehicles. Insurance companies look at all of the risk factors when choosing your premium. But just the fact that you are a homeowner will help you start at a lower rate.

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How to Get the Homeowner Discount on Car Insurance

If you don’t use the same insurance company for your homeowner’s insurance and auto insurance, you’ll need to prove to your auto insurance company that you’re a homeowner. You’ll need:

  • Proof of homeowner’s insurance
  • Proof that you pay the taxes (real estate tax bill)
  • Proof that you own the home (mortgage coupon or deed)

How to Save Even More on Your Car Insurance

If you want to maximize your savings on your car insurance and even your homeowner’s insurance, bundle both policies with the same company. Typically, when you buy more than one policy from an insurance company, they offer lower premiums.

In this case, you may get the discount for being a homeowner as well as the bundled discount if you have your homeowner’s insurance with the same company. It will take a little more work as you comparison shop for two policies, but the discount can make the extra work worth it.

If you are a homeowner, make sure your car insurance agent knows it. If you already have auto insurance but just bought a home, pick up the phone and let your agent know. You may be privy to a decent discount that can help make your premiums more affordable.

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