Best car insurance for homeowners

The cheapest car insurance for homeowners 

Finding cheap auto insurance can be challenging, and rates vary between drivers based on driving history, location and other factors. Securing a carrier that offers car and home insurance bundles may help make your policies more affordable. Cost is one consideration, but so are customer service and availability. We composed the following list by comparing average rates and carrier Bankrate Scores to bring you some of the best and affordable auto insurance options for homeowners.

Factors that affect car insurance costs for homeowners

Car insurance rates fluctuate significantly based on a multitude of rating factors. Some rating factors are easier to control than others, such as your coverage selection or annual mileage. However, some aspects of your risk profile, such as location and state-regulated coverage requirements, are beyond your control. Bankrate knows that keeping in mind how an insurance company evaluates your auto policy may help you keep your car insurance cost down.

Coverage selections

Depending on your insurance company and state, various types of coverage make up your auto policy. While most insurance experts recommend carrying higher levels of liability coverage for better financial protection, other types of coverage, such as comprehensive and collision, require careful consideration.

Beyond standard options, gap coverage, rental reimbursement and roadside assistance may be beneficial to some drivers or be cost prohibitive to others. Work closely with your insurance agent to avoid creating expensive coverage gaps when paring down your policy to save money.

Vehicle type

When it is time to get a new car, keep your insurance cost in mind before heading out to the dealership. Your car's make and model influences the cost of your auto insurance, especially newer cars with high-end technology. For example, if you are trying to decide between a family-friendly minivan or a car that shows off your sporty side, full coverage car insurance for a 2022 Honda Odyssey is on average 29 percent less than a 2022 BMW 330i.

Driving history

Your driving history is somewhat in your control in regard to speeding and DUI infractions, but car crashes happen. The longer you go without an accident or moving violations, the lower your car insurance rates usually are. If you do have a blemish on your driving record, your rates will likely remain high for three to five years after the incident.

Location

Not every state uses ZIP codes as a car insurance rating factor. However, every state has its own car insurance laws and coverage requirements which uniquely impact the overall rate of insurance in each state. Other ways location can affect your policy are heightened risk from extreme weather, population density, and risk of theft and vandalism, to name a few.

How to save on car insurance for homeowners

Homeowners looking to take control of their personal finances can do so by finding creative ways to save money on auto insurance. Each insurance company rates risk differently and has different discount opportunities. Finding the right one can make or break your insurance budget.

Shop around

It never hurts to compare insurance rates between carriers, especially if you've recently experienced a big life change. Getting married is a significant life change that prompts most people to update their auto insurance, but what about getting a new job? Or graduating from college later in life? The insurance company you've had for the past several years might not be the best fit for you now if your life has evolved.

If you have experienced any of the following events in the past year or so, shop your car insurance to ensure you are still getting the best rate and have coverage limits that match your current lifestyle.

• Gotten married or divorced
• Moved in with your parents/moved out of your parents' home
• Changed jobs
• Changed your commute
• Joined alumni or professional organizations
• Completed another level of education
• Purchased a new/used car
• Started insuring a teen driver

Improve your credit score

While a handful of states do not allow credit history as a car insurance rating factor, most do. With inflation causing many Americans to carry higher credit card balances than in the past, you might be paying more for car insurance due to a decrease in your credit score. If you are in a situation where your credit may be categorized as poor, getting quotes from non-standard car insurance providers may help you find a lower rate.

However, if you are working to improve your credit, you may be able to save money on both your auto and homeowners insurance. Once you move your credit score into a higher category, from fair to good for example, proactively contact your insurance agent and ask if they can re-evaluate your policy. With your improved score taken into account, it's possible to see a significant decrease in your premium.

Car insurance discounts for homeowners

Most car insurance companies offer at least a few discounts, and homeowners are usually eligible for even more saving opportunities. Below are examples of some of the most common discounts you will see in your shopping process:

Bundling discounts

One of the easiest and best car insurance discounts is the bundling discount. Most carriers apply the bundling discount to just the auto policy, but some can apply savings to both the auto and home policies. Savings vary depending on the carrier, but usually range from 20-30 percent. While a home and auto bundle is the most common pairing, sometimes you won't find the best rate for both your auto and home policies under the same company. In this situation, check to see if your carrier offers a homeownership discount instead.

Safety discounts

The vehicle identification number (VIN) will automatically alert your insurance agent of the safety features your car was manufactured with. However, if you or the dealership added additional features, you may qualify for extra savings off certain policy coverage types.

Features that reduce the chance of your vehicle being stolen will usually decrease the cost of comprehensive coverage. Safety features that reduce your risk of an accident can lower the cost of your collision and liability coverage. Keep in mind that high-tech features cost more to repair if they are damaged or stolen, so safety feature discounts tend to be small.

Payment discounts

There are several kinds of payment discounts available. Some insurance companies offer policy discounts if you can pay your premium in full before the due date. Others give a discount for enrolling in automatic payments with your bank account instead of making on-demand payments with your debit or credit card. Even with carriers that don't offer a premium reduction for your payment plan or method of payment, you may save money by avoiding service or installment fees if you enroll in automatic payments.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 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 2022 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.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.