Homeowners file fewer auto insurance claims, says Insurance.com analysis
FOSTER CITY, Calif. (November 18, 2014) – Drivers who own homes file far fewer auto insurance claims than those who rent or live with parents, according to a new analysis from Insurance.com, an insurance quote-comparison site.
Among the more than 700,000 drivers age 18 and older who disclosed past auto insurance claims as part of their online car insurance comparison-shopping:
- 14.3 percent of homeowners (single-family, condo and multi-family dwellings) had filed at least one car insurance claim in the past three years.
- 16.8 percent of renters had filed a claim.
- 22.2 percent of drivers who live with their parents had filed a claim.
“Even among drivers well into their 40s, the pattern is consistent. Renters file substantially more claims than homeowners, and people who live with their parents file substantially more than renters,” said Des Toups, managing editor of Insurance.com.
The data include claims of all kinds: collision, comprehensive, liability and uninsured motorist.
While insurance companies don’t penalize those who rent or those who live with parents, they do reward homeowners, added Toups.
“Typically, you’ll get a discount just for owning a home,” said Toups. “But owning a home also lets you claim one of the biggest discounts available, which is for bundling your car insurance with your homeowners insurance.”
Discounts for bundling home and auto insurance average about 8 percent nationwide, according to data gathered for Insurance.com by Quadrant Information Services. Discounts from six major insurance companies for a concurrent homeowners policy averaged more than 14 percent in Iowa and North Dakota, and topped 10 percent in six other states.
“Car insurance companies love homeowners because they win two ways,” said Toups. “The homeowners file fewer claims on average, and the insurance company has another big-ticket item to insure.”
Drivers with a bundled renters insurance policy also get a price break, but it’s typically smaller, averaging about 5 percent nationwide, said Toups.
See complete data on claims by residence type, and bundling discounts by state, at https://www.insurance.com/auto-insurance/vehicle-shopping/home-and-auto-insurance-claims.html.
Insurance.com analyzed data from more than 700,000 drivers who compared car insurance quotes online from January 1, 2012, to July 14, 2014. The data represents claims of all kinds reported in the previous three years.
For bundling discounts, Insurance.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers in 10 ZIP codes per state, comparing rates with and without concurrent homeowners or rental insurance policies. Bundling savings were based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit. The rate included uninsured motorist coverage. Actual rates will depend on individual driver factors.
Insurance.com, based in Foster City, Calif., is an online resource where consumers can compare side-by-side, real-time auto insurance quotes from multiple insurance carriers. Since its inception in 2001, Insurance.com has delivered more than 11 million quotes to consumers – who, in less than 10 minutes, fill out one form and save an average of $540 annually – making it one of the largest independent insurance marketplaces in the U.S. Participants include some of the biggest names in auto insurance, including Progressive, Esurance, The Hartford, Travelers and 21st Century. Experts from Insurance.com are available for interviews on all issues pertaining to auto insurance.
About QuinStreet Inc.
Insurance.com is owned and operated by QuinStreet Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with information they need to research, find and select the products, services and brands that best meet their needs.
# # #
Press contact: Bill Groak, Pacific Communications Group