Can Homeowners Get Auto Insurance Discounts?
Last Updated on November 23, 2019
You’ve worked hard to become a homeowner. But does being a homeowner mean you qualify for auto insurance discounts?
Today, we’re explaining everything you need to know about whether or not homeowners get auto insurance discounts, including how much of a discount you can expect to receive for being a homeowner.
Yes, Homeowners Can Get Auto Insurance Discounts
Many insurance companies in the United States offer discounts for bundling. If you have both home insurance and auto insurance, then you can bundle the two policies together to save money on both policies.
And, some insurance companies give you a discount just for being a homeowner – regardless of whether or not you’ve bundled your policies together.
Remember: insurance is all about risk. Anything that makes you a lower risk will lower your insurance premiums. As a homeowner, you may be considered a lower risk than a renter: typically, a homeowner has a better, more stable financial situation, and that makes them a less risky person to insure.
Two Major Auto Insurance Discounts for Homeowners
Overall, there are two major auto insurance discounts available to policyholders, including:
Homeowner Discounts: Buying a home shows a lot of responsibility. It shows you have saved up enough for a down payment. It shows you are committed to living in the same place. It shows you can pay a mortgage and meet other financial obligations. Overall, homeowners tend to be less risky to insure than non-homeowners.
Bundling Discounts: Insurance companies will also give you a discount for bundling home and auto insurance together. If you have your home and auto insurance with a single company, then you might save, say, 20% on both policies. This has nothing to do with the responsibility of being a homeowner: it has everything to do with insurance companies wanting as much of your business as possible. Insurance companies want to reward clients who buy multiple policies from the same company, so they give you a discount on your home and auto insurance.
How to Get a Homeowner Discount on Car Insurance
So you own a home and you want a car insurance discount. What’s next? How do you qualify for a homeowner’s discount on car insurance?
To qualify for a homeowner discount on car insurance, you will need to provide proof of homeownership to your car insurance company. Since the homeowner discount is significant, insurance companies will want to verify the discount is being applied properly to qualified candidates.
How to Provide Proof of Homeownership
Many insurance companies require proof of homeownership for you to qualify for the homeowner’s discount.
Some of the ways to prove homeownership include:
- A copy of your homeowner’s insurance policy
- A property tax statement or other home tax information
- Proof of mortgage payment or other mortgage information
Talk to your insurer to determine how to qualify for a homeowner’s insurance discount. Every company has different policies for what type of proof you need to provide.
Other Auto Insurance Discounts Available to Homeowners
You might save money on auto insurance with a homeowner’s discount. However, other discounts may also be available.
The most common home insurance discounts include:
- New home construction discounts (30 to 40%)
- Fire resistant building material discounts (10 to 15%)
- 10+ year renewal discount (5 to 8%)
- Sprinkler discount (4 to 6%)
- Roof upgrade discount (4 to 6%)
- Fire and burglar alarm discounts (4 to 6%)
- Water safety system discounts (1 to 5%)
- Claims-free discounts for 5 or 10 years (1 to 20%)
By taking advantage of these discounts, you can save hundreds of dollars on home insurance every year.
Bundling Home and Auto Insurance Isn’t Always the Right Decision
When you look at any “insurance tips” guide online, you’ll find plenty of experts who recommend bundling.
It’s true: bundling can often save you 15% to 30% off both your home and auto insurance policies.
However, bundling isn’t always the right choice in all situations. Bundling may be more expensive in certain situations, for example. Your auto insurance company might have great prices on car insurance but high prices on home insurance.
Be sure to compare auto and home insurance quotes to make sure you’re getting the best deal on auto insurance as a homeowner.
Yes, homeowners can get a discount on auto insurance. Most insurance companies offer two discounts just for homeowners, including bundling discounts and homeowner’s discounts. You can get a discount for bundling your home insurance policies together. You can also get a discount just for being a homeowner.
Talk to your insurance company to verify that you qualify for an auto insurance discount. Different insurers have different policies regarding how to prove homeownership and qualify for a car insurance discount.