Own a Home? Here's How to Save Money on Auto Insurance
by Maurie Backman | Updated July 15, 2021 - First published on July 9, 2021
If you own property, you may be able to score a discount on your car insurance -- and your homeowners policy, too.
There are several costs you'll incur in the course of owning a car. Not only will you have to keep up with your ongoing auto loan payments, but you'll also spend money on maintenance and, in some cases, repairs.
And let's not forget auto insurance. The cost of your policy will hinge on a number of factors, including:
- Your age
- Driving record -- the more moving violations you have on file, the higher your rates are likely to be
- The make and model of the vehicle you own
But if you happen to own a home and a car, you have a solid opportunity to save money on your insurance policies for both.
Bundling can really pay off
As a homeowner, you need insurance in case your property sustains damage or someone gets injured while visiting it. And if you bundle your homeowners insurance and auto insurance, you could wind up with a sizable discount on your hands.
Bundling is just a catchy way of saying that your car insurance company is also your homeowners insurance company. Going this route and bundling your insurance with one company could save you an average of $730 a year, based on a 2021 Insurance.com analysis of more than 50 car and home insurance companies' rates for those who bundle their policies.
Not only might bundling your policies save you money, but it could also make your life more convenient. First of all, it may be easier to deal with one company for all of your insurance-related claims, whether they're car- or home-related. Also, in some unique situations, you may need to file a claim against both your auto and homeowners insurance policies at the same time.
For example, say a house fire results in vehicle damage for a car that's parked in your garage. You may not know exactly how to file a claim for your vehicle, but if you have the same insurance company, you'll have an easier time navigating that situation.
Should you bundle your homeowners and auto insurance?
Much of the time, you'll reap big savings by bundling your insurance policies. But that's not always the case. Before you bundle your policies, be sure to price out each one separately. You may, in rarer cases, find that bundling doesn't offer great savings.
Additionally, you should price out insurance with different companies if, say, you already own a home and are adding a policy for your automobile. You may find that one company is able to offer an attractive enough price point where it makes sense to stick with one insurer for your homeowners policy but go with a new insurer for your auto policy. Remember, too, that different policies offer different levels of coverage. Bundling may not make sense if it means getting an auto insurance policy that's not as comprehensive as you want it to be.
As is the case with any financial decision you make, doing your research could be your ticket to cheap car insurance and finding the most savings. So while you're looking at bundling your policies, make sure you're exploring outside options as well.
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