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A homeowner insurance discount is one of the easiest auto insurance savings to get, and many drivers never ask for it. Several major car insurers lower your premium just because you own a home. In most cases, you do not need to buy your home insurance from the same company.
A homeowner insurance discount is also different from a multi-policy bundle, though the two can sometimes stack. For example, Progressive advertises a homeowner discount of up to 10%, even if your home is insured elsewhere. This guide explains how the homeowner insurance discount works, what it typically saves, and how to make sure you get it.
What Is a Homeowner Insurance Discount on Car Insurance?
A homeowner insurance discount is a rate reduction on your auto policy for owning your residence. The discount is tied to ownership, not to a specific home policy. As a result, condo owners and mobile home owners often qualify too. Some insurers even count you as a homeowner while you are still paying a mortgage.
Why do insurers care whether you own a home? Insurers price policies based on risk. Their claims data shows that homeowners tend to file fewer and smaller auto claims. Homeowners also tend to stay with one insurer longer, which lowers the insurer’s cost of finding new customers. Insurers reward that pattern with lower rates.
The Insurance Information Institute (III) notes that insurers use many rating factors. These include your driving record, location, vehicle, and claims history. Homeownership is one more factor some companies use. However, rating rules are regulated at the state level. Your state insurance department decides which factors insurers may use. That is why the same company may offer the discount in one state but not in another.
It also helps to know what this discount is not. Owning a home does not change your liability limits or coverage. It only affects the price. In addition, renters do not qualify for the homeowner discount. However, renters can often still earn a smaller multi-policy discount by bundling renters insurance with auto.
How Much the Homeowner Insurance Discount Saves You
The size of a homeowner insurance discount varies by company, state, and driver profile. Typically, a standalone homeowner discount falls in the 5% to 10% range. For example, one rate comparison added homeownership to a sample driver profile. The result was a savings of about 9.77% at Progressive and about 9.04% at GEICO. That is a meaningful cut for a single checkbox on an application.
Bundling home and auto with one company is a separate discount. It is usually larger. Industry sources put typical bundle savings between 5% and 25%. Some insurers advertise even more on the home side. Here is how several major carriers describe their bundle savings:
| Insurer | Advertised Bundle Savings | Notes |
|---|---|---|
| Allstate | Up to 25% | Multi-policy discount |
| State Farm | Up to 22% on auto | Up to 35% on the home policy |
| Farmers | About 20% on average | Varies by state |
| Nationwide | Up to 20% | Multi-policy discount |
| Travelers | Up to 10% on auto | Up to 15% on the home policy |
| Progressive | Up to 10% homeowner | Applies even if home is insured elsewhere |
Let’s put those percentages into dollars. Say your full coverage auto premium is $2,000 per year. A 9% homeowner insurance discount would save about $180 a year. A 20% bundle discount on the same policy would save about $400. Over five years, that adds up to $900 to $2,000 in savings. However, these are advertised maximums. Your actual discount depends on your state and your full rating profile.
Keep in mind that discounts apply to your base rate. If your base rate is high because of a recent accident, a 10% cut still leaves a high premium. As a result, the cheapest final price may come from a company with a smaller discount but a lower base rate.
Homeowner Discount vs. Bundling: Which Is Better?
Many shoppers confuse these two discounts. The homeowner insurance discount rewards ownership alone. The bundle discount rewards buying two or more policies from the same insurer. Some companies offer both, and some offer only one.
Bundling is not always the cheapest choice. For example, Insurance.com compared bundled and split policies for sample customers. In one case, buying home and auto from two different insurers saved $1,119 a year versus bundling with a single carrier. That happens when one company has great home rates but expensive auto rates, or the other way around.
In most cases, the smart move is to price both options. First, get a bundled quote. Then get separate quotes for each policy from competing insurers. Compare the combined annual totals, not just the discount percentages. The lower total wins.
Bundling does have benefits beyond price. You get one bill, one app, and often one deductible if a single event damages both your home and car. Some sources also note that insurers may be less likely to drop a customer who holds several policies with them. Weigh these perks against any price difference.
How to Get Your Homeowner Insurance Discount
Getting the discount is usually simple. However, insurers rarely apply it automatically. Follow these steps to make sure you get credit for owning your home.
Step 1: Tell your insurer you own a home. Call your agent or check your online account. Ask whether a homeowner insurance discount is available in your state. If you bought your home after starting your auto policy, your file may still list you as a renter.
Step 2: Have proof ready. Some insurers ask for a mortgage statement, property tax bill, deed, or home insurance declarations page. Others accept your word and verify it with public property records.
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Step 3: Ask about stacking. Ask whether the homeowner discount can combine with a bundle, safe driver, multi-car, or paperless discount. Typically, insurers allow several discounts at once. However, some cap your total discount.
Step 4: Shop around every year. Rates change often. Compare at least three quotes at each renewal. Include the homeowner insurance discount in every quote so the comparisons are fair.
Step 5: Update after big life changes. Moving, refinancing, or selling your home can affect eligibility. Tell your insurer within 30 days so your rate stays accurate. If you sell and rent, you may lose the discount at renewal.
If you think you were charged the wrong rate, start with your insurer. If that does not resolve it, you can file a complaint with your state insurance department. The NAIC website lists contact information for every state regulator.
Frequently Asked Questions
Do I need to insure my home with the same company to get a homeowner insurance discount?
Not always. For example, Progressive offers its homeowner discount even if your home is insured elsewhere. However, other insurers only give savings through a home and auto bundle.
Does owning a condo or mobile home count as homeownership?
In most cases, yes. Many insurers treat condo, townhome, and manufactured home owners as homeowners. Typically, you just need to own the property where you live.
How much does a homeowner insurance discount save on car insurance?
Typically, the standalone homeowner insurance discount saves around 5% to 10%. On a $2,000 annual premium, that is about $100 to $200 a year. As a result, it is worth asking about at every renewal.
Can I lose the discount if I sell my home?
Yes. The discount depends on current ownership. However, you may still qualify for a smaller bundle discount if you add renters insurance with the same company.
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Official Sources & Resources
For verified information on auto insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- Federal Trade Commission — Auto Insurance: consumer.ftc.gov
- USA.gov — Car Insurance: usa.gov/car-insurance
Content last reviewed October 2026. If you notice any outdated information, please contact us.