How Owning A Home Can Save On Car Insurance
Posted on: 2 March 2018
Many different factors determine your car insurance rate, but did you know that home ownership is one of them? Yes, owning a home can affect your auto insurance rates, and the effect is typically positive. Here are some of the reasons you may enjoy low auto insurance premiums just because you own a home:
Bundling Policies
Most insurance companies don't restrict themselves to single lines of insurance; they offer multiple lines of insurance. For example, you may find that your auto insurance company also sells homeowners insurance and commercial insurance, among others. This can work to your advantage if you own a home, because the insurance company can offer you a discount on your car insurance rates if you buy both your auto and home insurance coverage from them. Insurance companies offer the bundling policy discount as a way of rewarding customers who give them more business. Another reason for offering the discount is that it means you are less likely to terminate your business relationship with them.
Homeowner Discount
Some auto insurance companies believe that homeowners are generally more trustworthy and reliable than those who don't own homes. Perhaps this is connected to the fact that buying and maintaining a home isn't easy; it requires a certain level of discipline. Whatever it is, your auto insurance company is more likely to believe you are a careful person in general (and this extends to driving) if you own a home than if you don't own one. This may entitle you to an auto insurance discount that is offered exclusively to homeowners.
Improved Credit Score
Owning a home may also contribute to low auto insurance rates indirectly. To understand why this may be the case, you need to first understand that insurance companies use many different factors to determine auto insurance rates, and your credit score may be one of them. Also, you need to know that owning a home may improve your credit score, especially if you bought the home on mortgage and you have been servicing your loan faithfully for several years. This improved credit will score you reasonable auto insurance rates when it comes to calculating your premiums.
Hopefully, home ownership isn't the only thing you are banking on to help you enjoy low auto insurance premiums. Other things you should consider include being a careful driver, minimizing your annual driving mileage, and living in a safe neighborhood. Talk to your auto insurance agent for more ways in which you can enjoy low coverage rates. Companies like Amco can offer more information.
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