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Best car insurance for homeowners

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Homeowners have a lot to think about, including what company is best to cover their house. But what about car insurance for homeowners? The average cost of car insurance in the U.S. is $1,674 per year for full coverage, and home insurance costs an average of $1,312 per year for $250,000 in dwelling coverage.

Homeowners may have different needs for car insurance, just based on their circumstances, than renters or condo owners do. 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
Allstate 870/1,000 $696 $1,921
Auto-Owners 878/1,000 $382 $1,351
NJM Insurance Not rated $370 $1,271
Progressive 862/1,000 $582 $1,509
State Farm 892/1,000 $539 $1,457

Allstate

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

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

NJM Insurance has 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

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 and near-average rates for state minimum 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

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).

However, there are some cons to bundling your policies. 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. 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.

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

Should I bundle my home and auto insurance?

Most insurance companies offer bundle discounts for insuring both your home and vehicles. If the savings make sense, it might be worth bundling instead of having two different insurance carriers.

Is it better to bundle home and car insurance?

Bundling policies with the same company can make it easier by dealing with just one company, and it could save you money. Some companies offer incentives like a common loss deductible — which means you only pay one deductible (usually the highest) if your home and vehicle are damaged in the same covered loss — if you bundle home and car insurance.

How much does bundling home and car insurance save?

The savings are dependent on a number of factors, but mostly on which company you choose. Different companies offer different levels of discounts, so shopping around can be helpful. Your coverage needs and home specifications will also affect rates.

Methodology

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.

Written by
Mandy Sleight
Insurance Contributor
Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products.
Edited by
Managing Editor