Can Owning a Home Help You Save on Auto Coverage?

Does owning a home help everyone save on auto insurance?hands holding a toy home and a mini piggy bank

You may have heard people say that homeownership unlocks special discounts on your auto insurance.  But how much truth is in this statement?  While some homeowners can access savings on their car coverage, others cannot.  Here’s why.

  • Bundling Home and Auto Insurance

One reason auto insurance is cheaper for some homeowners is that that they secure an auto policy from the same insurance company that they insure their home with.  This allows them to bundle these two policies, which automatically unlocks savings.  However, if a homeowner chooses to insure their car through a different insurance company, then they obviously do not have the option to bundle.  Sadly, these homeowners will not be able to access this auto insurance discount.

  • Improved Credit Score

Some homeowners may also get access to lower auto insurance rates because they have a higher credit score than non-homeowners.  Typically, homeowners have better credit scores and more stable finances than individuals that do not own a home.  This is particularly true for homeowners who have successfully paid off their mortgage.  Because auto insurers consider your credit score when determining your auto insurance premiums, the better your credit, the lower your car insurance rates will be.  However, homeowners who miss mortgage payments or who are struggling financially may not have strong credit.  These homeowners will not be able to access lower auto insurance rates.

This is why some homeowners save on their auto insurance while others do not.  Do you have more questions about your home or auto insurance?  If so, then contact the experts at Miller Carlisle Insurance Services.  We are ready to assist you with all your coverage needs today.