Best car insurance for homeowners

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Almost every state in the country requires a minimum amount of liability insurance when you buy a car. The national average cost of car insurance is $1,674 per year for full coverage insurance – although your rate could be higher or lower depending on personal characteristics and location.

If you are a homeowner, you may be able to save money on your car insurance. Some insurance companies offer discounts if you bundle home and auto insurance together. Even if the bundled rates are not the cheapest, just by owning a home, you could become eligible for discounted rates to make your car insurance cheaper.

Key takeaways

  • Many insurance companies offer a homeownership discount for homeowners and condo unit owners, even if you do not bundle your car and home insurance together.
  • Though bundling home and car insurance can save money and make things easier with one carrier, it is not always the cheapest or best option.
  • Get quotes from several companies to compare bundle and individual policy rates to see if bundling offers the cheapest rates for home and car insurance.

Home and car insurance bundles

A home and car insurance bundle means that both your home and your car are insured with the same carrier. Some people choose to bundle for savings and ease of having everything with the same insurance company. Certain insurance companies offer bundling incentives like large discounts and a single deductible if damage is caused to both your car and home at the same time.

In general, discounts for homeowners tend to be higher than condo unit owners and renters. This may be because homeowners tend to be viewed as more stable from an insurance risk perspective, which can lead to filing fewer claims.

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 876/1,000 $696 $1,921
Auto-Owners 890/1,000 $382 $1,351
NJM Insurance 909/1,000 $370 $1,271
Progressive 856/1,000 $582 $1,509
State Farm 881/1,000 $539 $1,457

Allstate

Whether you rent or own your condo or home, Allstate offers up to 25% savings by bundling your car and home insurance. Allstate offers a full list of discounts on car insurance, including pay in full, paperless and safe driving discounts. Homeowners who are claims free can save up to 20% on their home insurance premium and get a welcome discount of 10%, which can turn into a loyalty discount each year you stay with Allstate.

Learn more: Allstate Insurance review

Auto-Owners

Auto-Owners offers perks like waiving your collision deductible if you get in an accident with another Auto-Owners insured. Policyholders can also take advantage of Auto-Owners common loss deductible, which reduces or eliminates your auto deductible if both your car and home are damaged by the same covered claim.

Learn more: Auto-Owners Insurance review

NJM Insurance

NJM Insurance has the cheapest and best average annual rates for state minimum and full coverage car insurance on our list. According to NJM Insurance, switching to NJM for car insurance can save you up to 20%. Drivers can also take advantage of other discounts like having more than one car and for choosing full coverage over liability only.

Learn more: NJM Insurance review

Progressive

At Progressive, new customers save on average 20% by bundling home and car insurance. The more policies you have with Progressive, the more you can save with a multi-policy discount, including RV, boat, motorcycle and more. With lower-than-average national rates for full coverage and state minimum, plus the incentives for bundling policies, Progressive may offer the right price to consider switching carriers.

Learn more: Progressive Insurance review

State Farm

State Farm is the #1 insurer in the nation for home and car insurance, saving homeowners on average $965 per year by bundling policies. If you own more than one car, you can save up to 20% with the multi-car discount. Even with its size, State Farm is still able to offer cheaper-than-average car insurance rates for drivers.

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. The pros of bundling can include:

  • Cheaper rates for home and car insurance.
  • All policies with the same carrier for ease.
  • Potential for deductible savings (depends on carrier).

However, there are some cons to bundling your policies. If you file too many claims, there is a chance of being dropped for your car or home insurance. If this happens, your other policy will go up because you no longer qualify for the bundling discount.

Bundling also may not be the best rate you can get, so it is a good idea 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 to get a quote for the policy you do not have with them to compare coverages and rates.

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 car together. 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 the 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 if you bundle home and car insurance.

How much does bundling home and car insurance save?

Bundling home and car insurance can save up to 30%, but the savings are dependent on a number of factors, including personal driving history and location. 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 coverages that meet 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.