The truth about homeowners saving money on their auto insurance.
You may have heard many people insist that owning a home means that you can access lower auto insurance rates. But is there truth to this claim? Here’s how homeownership affects your car insurance costs.
- Bundling Home and Auto
One reason auto insurance is cheaper for some homeowners is that that they secure an auto policy from the same insurance company that they insure their home with. This allows them to bundle these two policies, which automatically unlocks savings for both policies. However, if a homeowner chooses to insure their car through a different insurance company, then they obviously do not have the option to bundle. Sadly, these homeowners will not be able to access this auto insurance discount.
- Improved Credit Score
Some homeowners may also get access to lower auto insurance rates because they have a higher credit score than non-homeowners. Typically, homeowners have better credit scores and more stable finances than individuals that do not own a home. This is particularly true for homeowners who have successfully paid off their mortgage. Because auto insurers factor in your credit score when determining your auto insurance premiums, the better your credit, the lower your car insurance rates will be. However, homeowners who miss mortgage payments or who are struggling financially may not have strong credit. These homeowners will not be able to access lower auto insurance rates.
This is how homeownership affects your auto insurance costs. Do you have additional questions about your car coverage? If so, then contact the experts at Robert J. Los Insurance Agency in Hamburg, New York. Our dedicated team is eager to assist you with all your coverage needs today.