Insurance is an expense you might not like paying each month, but you will be happy you have it if you ever need to file a claim. The good thing about insurance is the protection it offers for the things you own. The bad news is that it costs money. If you are currently in the process of buying a house, you will need to get home insurance for the house, and getting home insurance could affect your auto insurance rates.
How does home insurance affect car insurance rates?
If you have just one type of insurance coverage, such as car insurance, your rates will be based on insuring just that one item. When you add another type of coverage to your policy, it is called bundling.
Bundling your insurance is a term that refers to getting coverage on multiple different assets from the same insurance company. All your coverage is placed in one policy, and insurance companies offer discounts when people bundle.
For an insurance company, giving a discount is a great way to encourage policyholders to choose one company for all the coverage they need. If you price out your auto insurance and home insurance rates from two different companies, you would see that the price is likely to be higher than if you bundled both types of coverage with one company.
What are the other factors that affect car insurance rates?
In addition to bundling, there are many other ways to save money on car insurance, and this is primarily because insurance companies factor in a lot of things when determining your car insurance rates.
There are certain factors you cannot change that will affect your rates, and these include your age, gender, and marital status. There are also factors you have control over, and your driving record is one of these things. If you are a safe driver and can avoid accidents and tickets, you are likely to pay less for your insurance. You are also likely to qualify for a discount if you do not drive a lot during the year. You can ask your insurance agency about other types of discounts too.
If you are buying a house and own a car, bundling your insurance policies together is usually the best way to save money. If you would like a quote for insurance coverage for these things and other assets you own, contact an insurance company today.