Can all homeowners access car coverage savings?
While you might have heard people tell you that homeowners always save on their car insurance, how much truth is in this statement? In reality, owning a home can help some, but not everyone, save on their auto coverage. Here’s how owning a home helps some save but not others.
- Home and Auto Insurance Bundles
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 together, 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 auto insurance discounts.
- Higher Credit Scores
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 consider your credit score when determining your 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.
- Home Location
Homeowners can save on their auto insurance if their home is located in a safe neighborhood. Auto insurance providers might offer these homeowners lower rates because they consider their cars at lower risk for theft and vandalism. Unfortunately, if your home is in an area with high crime rates, then auto insurers will consider your risk for car theft and vandalism higher. In this case, your auto insurance rates would also be higher.
Ultimately, while some homeowners save on their auto insurance, this is not true for all homeowners. Do you have further questions about how homeownership affects your auto insurance? If so, then contact the experts at Steve Wilk Insurance. Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.