Insurance providers measure your financial responsibility in many different ways, from checking out your credit rating to making sure you’ve had prior insurance coverage.
And, in 46 states, insurers can consider whether you own or rent your home when pricing your car insurance.
A rate analysis performed by The Zebra shows that drivers who rent pay more for car insurance than those who own homes — both before and after insurers apply discounts for bundling your home (or renters) and car insurance policies.
Insurance regulators generally allow insurers to consider homeownership in car insurance pricing, because insurers can show that homeowners are less risky to insure (i.e. they’re less likely to file a car insurance claim). However, lawmakers in several states have found it unfair that renters have to pay more for car insurance than homeowners, highlighting different barriers people face on the path to homeownership.
On July 1, 2020, Michigan will become the fifth state to ban homeownership from being considered in car insurance pricing, joining Hawaii, California, Massachusetts, and Minnesota.