Car and homeowners insurance: can buying one save you money on the other?
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Buying car insurance as a homeowner does offer some savings. In the eyes of an insurance company, a homeowner is more financially stable and thus less likely to file a claim or get into an accident. As such, homeowners pay $166 less per year than the national average for car insurance! Let’s explore some handy tips for saving on car insurance as a homeowner.
You can get a multi-policy discount from most major insurance providers by purchasing a homeowners policy and a car insurance policy from the same company. Have the below information on hand when beginning the quote-gathering process:
Most home insurance policies have personal property value limitations (usually $3,000-$5,000). If you have furs, fine art, or jewelry worth more than $5,000, consider adding more coverage.
For more information on this, see our in-depth guide to home insurance.
Now that we’ve explored how to get a quote, let’s explore the companies offering the best discounts. With a general driving profile (outlined here), we surveyed some top insurance companies across the US and added a “homeowner” discount to the policy.
| Company | Homeowners | % Savings |
|---|---|---|
| Allstate | $1,383 | 9.49% |
| GEICO | $1,258 | 9.04% |
| Farmers | $1,228 | 10.85% |
| Liberty Mutual | $1,141 | 9.71% |
| Nationwide | $1,141 | 9.59% |
| Progressive | $1,282 | 9.77% |
| State Farm | $1,307 | 9.01% |
| USAA | $1,316 | 8.95% |
Nationwide offers the cheapest car insurance premium with the “homeowner” discount. Keep in mind, this isn’t a combined premium for home and auto — this is just the cost of an auto insurance policy with a homeowner discount applied. Because of the diverse nature of home policies, it would next to impossible to create a generalized profile to show this average cost.
Use this data as a starting point when searching for a home and auto policy. Assess as many companies as possible with your home and auto insurance bundled together.
Now that we’ve outlined how to get car insurance as a homeowner, let’s go over some simple ways to save.
Most insurance companies will raise your rates for three years after you file a claim. Before filing a claim, follow our guidelines:
There are times when you will need to a claim:
Keep in mind, you might be required to inform your insurance company after any accident as part of your policy conditions. Check your policy information to be sure.
Unlike your home, your car loses value over time. Meaning, you should evaluate your car insurance coverage when your car begins to age. The general rule of thumb in the insurance world is if your vehicle is worth less than $4,000, you do not need your comprehensive and collision coverage. These coverages, unlike your liability coverage, are designed to protect your vehicle and are not required by law. But if your vehicle isn’t worth much to begin with, you might be paying for coverage you do not need.
You can determine the value of your vehicle through online resources such as Kelley Blue Book and NADA online. If it is determined you need more than your liability coverage, considering raising your collision and comprehensive deductibles. By raising your deductible, you take on a greater amount of financial responsibility in the event of a claim. Thus, you lower the premium on your personal auto policy.
| Coverage Level | Average Annual Premium |
|---|---|
| Liability-Only | $672 |
| $500 Deductible | $1,427 |
| $1,000 Deductible | $1,268 |
A big benefit of carrying home and auto insurance policies with the same company is the discount. Here are some other standard discounts for which you should be on the lookout.
While maintaining homeowners and car insurance with the same company is important, it’s only a small part of finding low-cost car insurance. The best way to finding the cheapest rate is to shop around. Most major car insurance companies will offer you multi-policy discount, so don’t limit your search. Enter your zip code below to get started today.
Check out our library of insurance resources:
Between September and December 2017, The Zebra conducted comprehensive auto insurance pricing analysis using its proprietary quote engine, comprising data from insurance rating platforms and public rate filings. The Zebra examined nearly 53 million rates to explore trends for specific car insurance rating factors across all US zip codes, averaged by state, including Washington, DC.
Analysis used a consistent base profile for the insured driver: a 30-year-old single male driving a 2013 Honda Accord EX with a good driving history and coverage limits of $50,000 bodily injury liability per person/$100,000 bodily injury liability per accident/$50,000 property damage liability per accident with a $500 deductible for comprehensive and collision. For coverage level data, optional coverage (that must be rejected in writing) is included where applicable, including uninsured motorist coverage and personal injury protection.
National property and casualty losses information is from the Insurance Information Institute and the NOAA National Centers for Environmental Information U.S. Billion-Dollar Weather and Climate Disasters report.
Vehicle make and model data references the most popular vehicles in the U.S. by 2016 year-end sales, according to Goodcarbadcar.net automakers’ data.
Some pricing data may vary slightly throughout report due to rounding.
