How homeownership affects your auto insurance rates.
If you’ve recently purchased a home, then people might be telling you that you will now save money on your auto insurance in Lubbock, Texas. While some homeowners will have access to savings, not everyone will have lower auto insurance rates. Here’s how homeownership helps some people save on their car coverage.
- Bundling Home and Auto Insurance
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.
- Better Credit Scores
Some homeowners may also get access to lower auto insurance rates because they have a higher credit score than non-homeowners. Typically, homeowners have better credit scores and more stable finances than individuals that do not own a home. This is particularly true for homeowners who have successfully paid off their mortgage. Because auto insurance providers factor in your credit score when determining your auto insurance premiums, the better your credit, the lower your car insurance rates will be. However, homeowners who miss mortgage payments or who are struggling financially may not have strong credit. These homeowners will not be able to access lower auto insurance rates.
- Home Location
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 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 why some homeowners save on their auto insurance in Lubbock, Texas. Are you curious to learn about how homeownership affects your car coverage? If so, then contact the experts at Promised Land Insurance Group. We are ready to assist you with all your coverage needs today.