Experts tout lots of ways to save insurance – some simple, some as complex as installing a sprinkler system inside the home to lessen the chances of a damaging fire. But many overlook one of the easiest – and most lucrative – ways to save on your home insurance. Even though it’s right under their noses. Or should we say in their driveways.
That’s right. Your car can help you save big money on your home insurance. And you won’t have to gut your coverage, commit to expensive renovations for your house, or take other major steps to realize your savings.
Revving up your savings, Part I
What you will have to do to qualify for savings of up to 20% on your premium is this: Purchase your home and auto insurance from the same provider. Most home insurance companies also sell auto insurance, and the more types of coverage you buy from one provider, the more you typically can save.
But bundling, as it’s called in the industry, also can come with other benefits, though it varies by provider. Your deductible is the amount you agree to pay toward a claim. When you bundle coverages, some providers will waive one of your deductibles if your home and auto are damaged by the same covered event. For example, if a hailstorm damages your roof and your car (and you have comprehensive coverage as part of your auto policy), you would only have to pay the higher deductible of the two.
Finally, when bundling with some providers, you can align your policies so they have the same renewal date and opt for a single billing state. It won’t save you any money, but it can cut down on your stress and paperwork.
Bundling isn’t confined only to home and auto policies, however. Buying multiple policies from the same provider – most sell home, auto, renters, condo, motorcycle and other coverages that you can package – can result in savings. The deals vary from carrier to carrier, but when you’re buying multiple coverages, it’s a good idea to seek quotes for a bundle.
Revving up your savings, Part II
While your car can help you save on home insurance, your home can help you save on auto coverage – and not just by bundling. That’s right. Many auto insurance companies will offer a discount – the amount varies greatly by provider and even state – to policyholders who own their homes. That’s true even if the homeowner doesn’t bundle.
What’s the reasoning behind the discount? Carriers consider homeowners to be more responsible than renters when it comes to avoiding claims.
One other way your home can generate savings for your auto coverage depends on where you park your car. This one isn’t a discount – it’s part of the algorithm that goes into setting your auto insurance premium, so again the savings can vary widely.
In general, you’ll pay more for coverage if you park on the street as opposed to in the driveway (because there’s a greater chance of a wreck when your vehicle is parked along a street). However, you’ll also pay more if the vehicle is parked in a driveway than if it’s housed in a garage. The car in the garage is less likely to be stolen or vandalized.
Your home and your car typically are two of your largest assets, so it’s nice to know that each can contribute to lowering the insurance costs of the other without affecting the protection you need. All it takes is the willingness to ask questions of your providers.
Arthur Murray writes for HomeInsurance.com, an online resource for homeowners and drivers across the country. Offering comparative automobile and home insurance quotes, consumers rely on HomeInsurance.com for the most competitive rates from the top-rated insurance carriers in the country. The HomeInsurance.com blog provides fresh tips and advice on a range of financial topics to help homeowners and homebuyers make educated decisions about their insurance purchases.
