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Is Auto Insurance Cheaper for Homeowners?

Plenty of homeowners wonder if owning a home affects their car insurance. You might even find “do you rent or own your home?” is a frequently asked question when you’re shopping for car insurance. And there’s a good reason for this!

The truth is, owning a home CAN affect car insurance rates, so let’s go over how that works.

Homeowners Discounts

One of the ways owning a home can help you save money on car insurance is if you qualify for a homeowners discount on your auto insurance policy.

If you’re a homeowner, be sure to ask your insurance agent if this discount is available to you when you buy a car insurance policy.

Some of the other discounts that might apply to you include paperless discounts, safe driving discounts, and good student discounts.

Bundling Discounts

Most insurance companies offer discounts for policyholders who bundle their coverage. That means having multiple policies with the same company.

The most common form of this is insuring your vehicle and your home with the same company. If you do this, you’ll often be eligible for a generous bundling or multi-policy discount.

Homeowners and Auto Liability Coverage

Another important consideration when it comes to being a homeowner and having an auto insurance policy is how much liability coverage you have in your auto insurance policy.

If your car insurance policy doesn’t have adequate liability coverage after you’re at fault for someone’s injuries in a car accident, the injured person could sue you directly.

And what does that mean?

Well, your home is one of your greatest assets, so if you don’t have enough auto liability coverage, your home could be taken.

That’s why most policyholders are strongly encouraged to increase their auto liability coverage above the legally required minimums.

If you’d like to learn more about insuring your home and your vehicle with the best coverage on the market, get in touch with Fargo Moorhead Insurance today!