Does owning a home affect car insurance?

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Here's what you need to know...

  • Your home’s location does play a part in your car insurance premiums
  • If you live in a high-crime area or a densely populated area, you could pay more for car insurance
  • Your home’s location is only one factor used to determine your car insurance premiums
  • A comparison tool can help you find the best rates on car insurance in your local area

Owning a home has the potential to affect your car insurance rates.

Your home’s location will be used in the calculation that your insurance company uses to underwrite your policy and bundling your home and car insurance with the same company can lower your rates via a multi-line discount.

If you’ve already bundled your car and home insurance and still cannot afford the policies, you can use a car insurance comparison tool to find a more affordable auto insurance policy that may be able to lower your rates more than bundling your home and auto insurance.

Try our FREE online quote tool and compare at least three to four policies to find the best auto insurance rates for you! Enter your ZIP code above to begin!

Your Home’s Location

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When car insurance companies calculate your car insurance premiums, your home’s location is a factor. However, the location of where you park your car at night is always taken into consideration whether you own your home or rent an apartment or house.

For example, factors like these are considered when it comes to your home’s location:

  • High-Crime Areas – If you live in a high-crime area, your car insurance company will adjust your rates upwards. Your car is more likely to get broken into or stolen than if it were parked in a low crime area.
  • Densely Populated Areas – Individuals living in densely populated areas pay more for car insurance than those who live in the countryside. Densely populated areas have more drivers on the road, which mean an increased potential for getting into a car accident.
  • Accident Rates – If you live in an area that has a high rate of car accidents, your insurance company will take it into consideration when they underwrite your policy.
  • Moving – While it doesn’t make sense to move just for your car insurance rates, if you are planning on moving, you can input your new potential location into a car insurance comparison tool to determine the rates in your new area.

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Your Home’s Location is Only One Factor used in Determining Your Rates

If you do live in a densely populated area or an area with above average crime rates, you can rest easy knowing that it is only one factor used to calculate your insurance premiums.

Additional factors that determine your insurance premiums include: 

  • Your age
  • Marital status
  • Credit score
  • Driving history
  • How much you drive your car

If you have a good driving history, good credit, and drive short distances to and from work and to run errands, those factors could mitigate the costs associated with living in an undesirable area, according to your insurance company.

If you need cheaper car insurance rates, you can use a comparison tool to quickly find coverage with a different insurance carrier that uses a different premium formula.

Insuring Your Auto and Homeowner’s Insurance with the Same Insurance Company

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If you have a homeowners insurance policy or another type of insurance policy along with car insurance, you can take advantage of what is known as a multi-line or multi-policy discount.

Multi discounts are designed to save you money when you carry more than one insurance policy with the same insurance carrier.

When you opt to bundle your auto and home insurance or another insurance policy, the underwriter combines the risks of both policies and offers you a discount since the risk is split between the multiple policies.  Bundling saves you a few dollars every month.

If your car insurance premiums are outside of your financial comfort zone, you can take steps to get lower rates. One of those steps involves using a comparison tool to quickly look for car insurance policies with different insurance companies.

Not all insurance companies use the same formula or weigh the factors in the same manner, and because they use different formulas, you could save money by switching insurance carriers.

Start comparison shopping today and save some money on auto insurance rates! Enter your ZIP code below to get started!

FREE Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

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