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Best car insurance for homeowners
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When you purchase a home, you are likely aware that you will need to obtain a new homeowners insurance policy to cover your new home. But did you know that being a homeowner can actually impact your car insurance policy rates as well? Being a homeowner or bundling your home insurance policies and car insurance policies can result in significant savings depending on the provider and other factors, which means that when you’re purchasing a new home, it may benefit you to also evaluate your current car insurance policy.
As of 2022, the average national cost of full coverage car insurance is $1,771 per year, and the average national cost of homeowners insurance is $1,383 per year for a policy with $250k in dwelling coverage. These premiums can add up quickly, but Bankrate’s research may help homeowners find the best car insurance for their unique needs. We analyzed various companies and investigated auto and home insurance discounts, including homeownership discounts and bundling discounts, to help you find the right coverage for your circumstances.
Home and car insurance bundles
If you own both a home and a vehicle, you’ve probably heard about bundling your insurance. While this may sound like combining your auto and home insurance policies, all it really means is buying both policies from the same insurance company. You may get a discount on both your policies for bundling, and it can often come with other perks, too. For example, if both your policies are in one place, you may find it easier to manage them than if they were split between two companies.
Bundling discounts for homeowners tend to be higher than condo unit owners and renters. Home insurance policies tend to be more expensive than condo owners or renters insurance policies, so insurance companies generally give a larger discount in return.
Best car insurance for homeowners
To find the best car insurance for homeowners, we reviewed insurance companies offering both home and auto insurance. Car insurance rates, available discounts, policy offerings, financial strength and customer reviews were analyzed to find cheap rates with companies providing home and car insurance bundles.
|Insurance company||J.D. Power score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|NJM Insurance||Not rated||$370||$1,271|
Whether you rent or own your condo or home, Allstate offers savings by bundling your car and property insurance. Allstate offers a full list of discounts on car insurance, including pay in full, paperless and safe driving discounts. Homeowners who own new cars may also save on their auto insurance policies, and if you have an honor roll student in the house, you might save even more. Allstate also offers robust home insurance policies with plenty of endorsements for personalization.
Learn more: Allstate Insurance review
Auto-Owners is only available in 26 states, but it could be a good choice for your car insurance and home insurance if you are in its coverage area. The carrier offers a multi-policy discount for auto and home policies and also extends the discount if you purchase certain types of life insurance. Auto-Owners also has some of the cheapest average premiums on our list, which might appeal to homeowners looking for budget car insurance.
Learn more: Auto-Owners Insurance review
NJM Insurance has one of the cheapest average annual rates for state minimum and full coverage car insurance on our list. Although coverage is only available in limited states, getting a quote could be worth it if you live in an area where NJM writes policies. Drivers may also take advantage of other discounts like having more than one car and choosing full coverage over liability only. You might be able to save on your home insurance by having an automatic generator or being a nonsmoker.
Learn more: NJM Insurance review
Progressive offers an impressive list of discounts, including a multi-policy discount if you bundle your home and auto policies. However, with Progressive, you may get a discount just for being a homeowner, even if you insure your home with a different company. With lower-than-average national rates for full coverage plus the incentives for bundling policies, you may want to get a quote from Progressive and consider switching carriers if the company and coverage are right for you.
Learn more: Progressive Insurance review
State Farm is the largest insurer in the nation for home and car insurance by market share. Even with its size, State Farm can still offer cheaper-than-average car insurance rates for many drivers. You could save more money by buying both your home and auto from State Farm or insuring more than one vehicle. State Farm also has a large network of local agents if you prefer handling your insurance needs face-to-face.
Learn more: State Farm Insurance review
What are the pros and cons of bundling?
If you are considering bundling your car and home insurance, there are some pros and cons to consider, including:
Cheaper rates for home and car insurance.
Easier policy management since both policies are with one insurer.
Potential for deductible savings (depends on carrier).
Bundling may not be the best rate you can get, so it is good to shop for bundled and individual policy rates. This way, you can determine if bundling is the right choice for your situation.
In some cases, you may not have the option to bundle; high-risk drivers may have to get nonstandard car insurance, for example, with a company that does not offer home insurance coverage. In other cases, you might find that your insurance is cheaper if you go with two different carriers for home and auto.
You may be less likely to shop around for a better rate in the future after a price increase and will end up paying more overtime.
How to get an auto and home insurance bundle
If you are considering a car and home insurance bundle, review both policies you already have in place, especially the coverage limits and discounts. Call each company or use their websites to get a quote for the policy you do not have with them to compare coverage and rates. If you don’t have any insurance now, you can get new quotes for both home and auto coverage from several companies.
Consider getting quotes from two or more additional insurance companies to compare bundle rates. If the savings makes sense, it might be worth it to switch carriers and cancel your old insurance.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.