You may have heard many people claim that homeowners spend less on car insurance. While this is true for some homeowners, this is far from a universal fact. Here is what you need to know about the relationship between homeownership and auto insurance rates.
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, 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 this auto insurance discount.
Homeowners can save on their auto insurance if their home is located in a safe part of town and they keep their cars in a secured garage. 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 your risk for car theft and vandalism is higher. In this case, your auto insurance rates would also be higher.
This is what you need to know about the relationship between homeownership and auto insurance rates. Do you have additional questions about your homeowners or auto insurance? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.