Tips How Do you Homeowners Have Cheaper Car Insurance? Several factors weigh in when it comes to determining auto insurance rates. One of these factors is whether you rent or own your home. In general, most people believe that homeowners pay less for car insurance in Salt Lake City and elsewhere than people who rent their homes. This idea may be frustrating for the renter who is a responsible driver.
Tips How Do you Homeowners Have Cheaper Car Insurance?
Greater Responsibility Brings Greater Rewards
Though homeownership and driving a vehicle aren't directly related, they often have an impact on each other. It is thought that people who own their homes are given more responsibility. As long as they pay their mortgage on time, they are seen as a lower risk for many other credit situations and even with auto insurance.
Tips How Do you Homeowners Have Cheaper Car Insurance? A survey was conducted to determine who accurate this assumption is. The results agreed with the prevalent idea in the insurance industry that homeowners have fewer auto claims. One interesting statistic is that the biggest difference was in the younger age group. Adults between the ages of 18 and 24 showed the biggest discrepancy. People who lived with their parents had the highest number of claims while those who rented were slightly lower and those who owned homes had the fewest number of claims.
Utah was one of the states with the highest discrepancy between renters and homeowners. As the people in the survey aged, the differences were reduced. While still following the same basic pattern of homeowners with the fewest claims, the total numbers were lower. The people over the age of 65 had about the same number of claims whether they owned or rented their homes.
Understanding the Data Tips How Do you Homeowners Have Cheaper Car Insurance?
While the information is interesting, it isn't an adequate representation of all homeowners and renters. For instance, the survey didn't break down renters or homeowners by those who had missed payments versus those who were on-time 100 percent of the time. This factor could change the numbers because it alters the amount of risk for each category.
Tips How Do you Homeowners Have Cheaper Car Insurance?
Those who have missed payments will see the impact with car insurance companies who use credit scores to determine rates. Once those late payments are reported on their credit reports, it will lower their scores and can hurt their insurance rates. When that occurs, it doesn't matter whether they are renters or homeowners. The negative accounts will impact them in any situation.
Because of the implied correlation, it's unlikely that insurance companies will stop using this factor in figuring premiums in the near future. It's important for people to be aware of when shopping for rates for car insurance in Salt Lake City, but they also have to find other ways to compensate for changes in insurance premiums.
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