If you own a home, you might save on your car insurance — even without bundling.
Owning your own home is a huge financial commitment, the biggest most people will make in their lifetime. Along with the pride of homeownership — like more predictable housings costs while you invest in your property — are discounts that come with bundling multiple insurance policies under one provider.
As a homeowner, savings could extend to your standalone car insurance, without combining policies. Read on to learn about eligibility, how much you can save and the steps to take to start earning your discount.
Why do homeowners save on car insurance?
Among the many factors that can affect your insurance rates, owning a house is one that can save you money. That’s because insurers choose to rely on risk studies that appear to prove generalizations that include:
- Homeowners are typically more financially stable. Compared to people who rent, homeowners are generally considered more stable customers, meaning there’s less chance they won’t be able to pay their premiums. This can translate to better insurance rates, as insurers prefer low-risk policyholders.
- Homeowners improve their credit over time. People who regularly make payments on large loans typically have better credit than those who don’t. So if you’re making your mortgage payments on time, you could see a more favorable car insurance rate as your credit score climbs.
- Storing vehicles in residential garages is safer. Homeowners are more likely to have a garage, or at least a driveway, to park a vehicle in. Parking on the street is generally less safe, increasing the possibility of theft, vandalism, damage from passing traffic and damages related to inclement weather or constant sun exposure. Depending on your provider, you could save 5% to 10% on that basis alone.
- Provider prefer bundling policies. With nearly all insurers, you’ll find a discount for bundling multiple insurance policies. If you can bundle your car and homeowners insurance together, you might be able to shave money off your total.
Who counts as a homeowner?
If the deed to your home is in your name or if your name is on the mortgage you’re working to pay off, you’re considered a homeowner — and in many instances, your spouse can claim the same thing, even if their name isn’t on the paperwork.
While providers tend to apply any discounts across all eligible policies in your household, adult children or other family members who live outside the home will not receive those benefits and savings.
Car insurance providers with homeowner discounts
Many major insurance providers offer a homeowner discount. But not all discounts are created equal.
Take a look at the differences among major insurers extending homeowners discounts on auto coverage:
- Esurance. If you’re a customer, you’ll get discounts just for owning your own home, condo or apartment.
- Farmers. This provider offers a discount on your car insurance just for owning a home.
- Geico. Information indicates that you’ll save money by bundling, but you might not get a break on your auto policy just by owning a home.
- Allstate. Your only discount comes from bundling policies. But those savings could be substantial: Its site claims you can save up to 25% on your homeowners insurance and 10% on car insurance by moving both policies under Allstate’s coverage.
- Progressive. Progressive doesn’t give much away online about discount percentages or amounts, but it does indicate that if you own a home, you’re likely to save on your car insurance.
- Liberty Mutual. While you’ll save money by bundling, but you might not get a break on your auto policy just by owning a home.
Compare top providers with discounts for homeowners
Proving ownership of your residence
To get a homeowners discount on your car insurance, you’ll likely need to prove that you’re a homeowner. Some examples of documents you can use to establish homeownership include:
- A copy of your home insurance policy.
- Your property tax statement.
- Mortgage payment receipts or statements.
How do I update my car insurance policy with my new homeowner status?If you weren’t a homeowner when you originally purchased your auto insurance plan, contact your auto insurance provider to update your ownership status.
Ask a representative if you qualify for additional discounts or reduced car insurance premiums as a homeowner or any documentation you might need to provide.
Because most major car insurance providers offer discounts to homeowners, you’ll typically qualify for savings if you own your own home. To find out more about these discounts and eligibility, reach out to your provider.
Learn more about car insurance coverage, from discounts to legal requirements, in our comprehensive guide to car insurance. To get the best rates you’re eligible for, compare providers and policies against your specific needs.