My husband and I just sold our house and moved to another state. We plan to build our own home in the new state and are currently renting a house. I was extremely surprised to learn that our auto insurance increased by $200 a year because we are now renting a home instead of owning a home. The insurance already increased by approx. $500 because we moved to another "higher risk" location, which is understandable. But can anyone explain the rationale for asking more in auto insurance because people are renters and not owners of the home? What has that got to do with the auto insurance?
2007-02-19 09:46:00 · 10 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
*because when something happens they can sue you for your house.
2007-02-19 09:50:36 · answer #1 · answered by sing & pray 2 · 1⤊ 1⤋
Nothing! You need to shop around for auto insurance. Location does matter but new laws in some states are taking care of this. It should not matter if you rent or own your home. How and why would the insurance company even varify this information. At http://www.nationwidebillrelief.com the quote ask the question do you rent or own? But this is only there for stability and does not determine the outcome of the price from what I see. Once I read your question I filled out an application for renting and one for owning a home and the price was the same. I agree with you. $200 is to much of an increase for being a renter. I bet once you become a home owner your rate will not go down $200. Was you getting a discount from your insurance company for having both home and auto insurance? This can and most likely will raise your auto premiums. If you buy both policies many companies will give you a discount. Similar to a multi car discount.
2007-02-19 16:40:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Were you by some chance getting a multi-policy discount, for having home and auto insurance placed with the same company? A discount that wouldn't exist any longer? What if you place your tenant insurance with the same company, maybe the discount will once again be offered. I can't think of any other logical reason for an increase, other than greed. When I sell you insurance in Manitoba, I need to know where you live, but I don't need to know if you own or rent.
2007-02-19 15:25:16 · answer #3 · answered by Fred C 7 · 0⤊ 0⤋
You don't necessarily pay more JUST because you are a renter, but all else being equal, two parties looking for the same coverage and identical pictures, same car, same town, etc. the one renting would indeed pay more. Why? A home owner is seen as more stable, more likely to take financial responsibility, less likely to move off. Fair? Maybe not, but there is no promise that life will be fair. You have to realize home ownership also raises your credit score on your credit report, which is something else the insurance companies look at to set rates.
2007-02-19 09:51:57 · answer #4 · answered by oklatom 7 · 3⤊ 0⤋
Some states use your credit report in quoting insurance rates. Renters are classified as less responsible than a homeowner,thus the higher rates. Some people believe this is not fair for people that cannot afford a home,or had to file bankruptcy due to high medical costs,your creidt rating should not have an affect,but it does, I guess they think you will get into a wreck more often than the person that doesn't have money stress. It's not fair, but it is how it is.
2007-02-19 10:37:16 · answer #5 · answered by fisherwoman 6 · 0⤊ 0⤋
some of the others have mentioned stability and I would agree with them but there is another reason. Certainly not all but many of the places where a person can rent are also hi theft areas Thieves are always on the prowl looking for a car to take, what better place to go car shopping for one that you can discount later in the night. I agree that it isn't fair to a renter but when you move your insurance will come down
2007-02-19 14:05:31 · answer #6 · answered by ffperki 6 · 0⤊ 0⤋
If you own a home you get a break in insurance rates, especially if your home owners policy and your auto insurance are the same company. If that was the case for you, that is why.
2007-02-19 09:55:53 · answer #7 · answered by millionsofsubys 2 · 0⤊ 0⤋
Responsibility would be one area that comes to mind. Same reason they give you a discount when you're married and when you hit 25 yrs old.
2007-02-19 09:53:28 · answer #8 · answered by Jason h 2 · 0⤊ 0⤋
Just sell your cars and use public transportation, or use car sharing systems.
I save about $300 a month by doing just that, and my life is totally less stressful than my counterparts, who are constantly stuck in traffic, paying bridge tolls, parking, insurance, etc.
Sell your cars, seriously. Do it for the future of your children, by saving the environment from more carbon monoxide poisoning.
2007-02-19 09:50:36 · answer #9 · answered by shanhelp 3 · 0⤊ 3⤋
Stats state that homeowners are in less accidents than non homeowners.
That's the connection!
2007-02-19 18:03:26 · answer #10 · answered by PeppermintandPopcorn 3 · 0⤊ 0⤋