You Can Pay Lower Car Insurance Rates If You’re A Homeowner

Many drivers pay cheaper car insurance, just because they own a home. Bundling policies together is one of the easiest methods used to save money on car insurance. In most cases, insurance providers that sell auto policies, are also selling home insurance. If you are a homeowner, you can bundle your auto and home policies together, in order to save money on both policies. However, owning a house doesn’t necessarily mean you will automatically get a discount. In some cases, you will get no discount on your car insurance rates whatsoever.

Before bundling your home insurance and car insurance, consider the following:

• Bundling can be beneficial. You can save between 5% to 25% on each policy if you decide to bundle. It’s very convenient, and you won’t have to deal with multiple providers, multiple billing systems, and multiple accounts. If you have multiple costly claims or accidents on your driving record, you can decrease the chance for your insurer to drop you by bundling home and car insurance. You can save even more on your insurance if you have multiple cars, homes, or a spouse.
• Bundling has its disadvantages. Policyholders that have bundled policies may forget the importance of shopping around. In this case, they will not notice the small rate changes in their individual premiums. Buying separate car insurance and home insurance policies can be cheaper for some policyholders. In some cases, insurers that offer bundling policies, rely on other providers for home insurance. In this case, you won’t have the ability to choose your home insurance provider and you will have to deal with multiple insurers in the event of a claim. If you own an expensive high-end car, don’t expect to save too much on a bundled policy. Also, bundling can reduce the individual insurance limits of your policy.

Besides bundling, homeowners can save car insurance money through other means:

• Better credit score. Someone who owns a home is likely to have a better financial situation than someone who is renting or paying off a mortgage. Homeowners, usually have a better credit score than people who rent the place where they live. The credit score is an important factor that is used by insurers to determine the insurance rates paid by a policyholder. Drivers with a high credit score will pay lower car insurance premiums than those with a lower credit score, even though the other factors that help insurers to determine the premiums are the same.
• Safer neighborhood. You will pay less on your insurance if you live in a safe neighborhood. Your ZIP code is very important for your insurer. With the help of the ZIP code, the insurance provider can find out how many claims are in an area, vehicles theft ratio, number of break-ins, act of vandalism, and so on. Luckily, it doesn’t matter if you own or rent a house for your insurer that checks your ZIP code.

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