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Is there a homeowners' car insurance discount?

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.

How to get a multi-policy discount for car and home insurance

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:

Car insurance:
  • Personal information of all drivers, including license numbers, dates of birth, and driving history — including a timeline of any violations
  • Vehicle information (including VIN)
  • Address
  • Insurance history
 
Home Insurance:
  • Address
  • Personal information of all individuals living at the residence
  • Estimated value of your property
  • Estimated value of personal property
  • Desired liability limit
  • Itemized list of any valuables that may exceed homeowners policy limits
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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.


Which companies offer the best home and car insurance discounts?

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.


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Simple tips to save on car insurance coverage

Now that we’ve outlined how to get car insurance as a homeowner, let’s go over some simple ways to save.

 
Be smart with your claims

Most insurance companies will raise your rates for three years after you file a claim. Before filing a claim, follow our guidelines:

  • Get an estimate for the repairs at a local repair shop.
  • Reference The Zebra's State of Insurance study to see how much an at-fault accident would raise rates in your state. Consider this cost over three years: that's how long your insurance company will charge you.
  • Compare the out-of-pocket costs with the rate increase plus your deductible. If it's still cheaper to file a claim, do that.

There are times when you will need to a claim:

  1. If someone was injured. Because of how expensive medical expenses can be, it will probably be cheaper to let your liability coverage/healthcare handle this.
  2. If you are the at-fault driver and the not-at-fault driver does not want to be paid out-of-pocket for the repairs.
  3. If you suffer a total loss or extensive property damage

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.

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Make sure you have the right coverage

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. 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 Avg. Annual Premium
Liability only $703
$500 deductible $1,699
$1,000 deductible $1,493
Updated: 10/04/22.

Dynamic auto insurance data methodology

Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.

 

Shop carefully for discounts

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.

  • Good driver
  • Good student discount (ages 16-25)
  • Good/safe teen driving discount (pre-approved safety training course)
  • Telematics programs
  • Payment by bank account
  • Paid-in-full discount
  • eSignature discounts
  • Paperless billing discount
  • Multi-vehicle discount
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Shop around

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.

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RECENT QUESTIONS

Isn't it most cost effective to have cars and home with one company

Yes, typically it is cheaper to bundle your car and home insurance policies with one insurance company. Most companies will give you a multi-policy discount when you have more than one line of business with their company.
Aug 20, 2018 Wayland, MA

If I am buying car insurance and already have motorcycle insurance, will I be eligible for a prior insurance discount?

With the majority of companies, a prior insurance discount for auto coverage is based on being previously insured under an auto policy. Unfortunately, most companies won't consider an existing motorcycle policy to be sufficient to qualify for a continuous insurance discount.
Jun 6, 2017 Peoria, AZ

If I bundle home insurance and car insurance, will I be able to pay just one bill for both policies?

The benefit of bundling auto and home insurance is that you receive a multi-policy discount. If your auto insurance company also underwrites your home insurance coverage then you might even have just one company handling all of your claims.
Oct 23, 2016 Kilgore, TX

Is it possible to bundle three lines of insurance?

It is challenging to say which insurer would be the best for bundling multiple lines of insurance. Most companies would likely give you multiple policies to cover your vehicles, RV, and homes.
Nov 21, 2019 Penrose, CO

Ava Lynch photo
Ava LynchSenior Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one of The Zebra's property and casualty insurance experts.

Ava’s insurance career began as an agent with Farmers Insurance. Over the years, she has become an authority in all things property and casualty insurance, helping her to write informative guides for shoppers.

Ava’s work has been cited in publications such as InvestopediaThe BalanceMoney.comLiberty Mutual, U.S. News & World Report, GasBuddy, Car and Driver and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.