1. 1265 POINTS
    Drew Delaney, J.D., CLCS
    Commercial Lines Producer, Secure Investors Group, INC, Troy, Michigan
    Yes and no.

    I said no because owning a home does not make you a better or worse driver.  So, when actuaries are going through and determining premiums for losses and gains they will probably not give any significant weight to owning a home.

    I also said yes because if you group your home and auto together most insurers will give you a multi-policy discount.  This is just a discount for doing all your business with one insurance company.
    Answered on June 24, 2013
  2. 97 POINTS
    herb nease
    agent owner, shelter insurance,
    most companies give a 25 to 30% discount on the home and 5 to 10% on the auto policy if you place both polciies with the same company. We can thank Progressive and Geico for this discount as these carriers only want the customers auto insurance. In the past year or so both companies have partnered with a home insurance carrier to bundle.
    Answered on June 1, 2015
  3. 2777 POINTS
    Terry A. McCarthy, CLU, ChFC
    President, Insurance Associates Agency Inc., West Chester, OH
    Before the advent of the use of the use of a credit score and multi-variant rating formulas, rate making relied upon what the industry referred to as "stability factors" to arrive at rates. Stability factors are things like age, marital status, whether you have a job, have children, and similar types of considerations. The idea was (and is today) a person had a better chance of being profitable as a customer (from the insurer's point of view) if you are stable. So, stability factors were things about you and your life that reflect upon your commitment to stability. Owning a house was certainly a stability factor. Today, the rate making logic is decided on a similar assumption about your stability as a customer but we lean harder on credit as an (all encompassing) indicator than we do on these other factors. However, most carriers have more than one rate that is possible depending upon answers to the stability factors that are being considered, with credit score and claims history being primary factors. Because the question is an open question subject to more than one interpretation, owning a home does enter into auto insurance from a stability point of view, and a rate point of view. Carriers understand that customers with auto or home, but not both, have more claims and cost more on claims. Those with auto and home together with one carrier will be (on average) 15-20% less costly to insured from the claims point of view. That is why carriers offer auto-home multi-line discounts because they know the customer will be a better risk, incur fewer losses, and have losses that cost less, than the customers with only a single line of business with the carrier. So, it is true that owning a home does have an impact on auto insurance. Now, where it isn't likely to have any impact is on the policy coverage itself. Home and auto policies alike are written to provide the coverage intended so having a homeowner policy isn't likely going to impact the coverage on your auto policy. These are the three possible paths your question creates (in my assessment) so yes, having home insurance does impact auto insurance from a cost and underwriting perspective, but not from any coverage issue by and large.
    Answered on October 7, 2015
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