car insurance - homeowner?

Lychee

I notice that car insurance asks if you own a home, supposedly your car insurance can be cheaper if you are a homeowner...? Can't think why.

I own a home, but for career reasons, I live in City A where I rent where I live, and the house I own in City B is rented out.

If asked if I am a homeowner, I answer yes.

But I've across a car insurance website that asks for my current address then asks if I own this property. Which I don't. Rang customer services who were of no help other than to tell me I had to answer 'No'. The premium would have been a tad cheaper if I had answered 'yes I own this property'.

What difference does it make to car insurance if I own the property where I currently live?? Not in terms of cost, but to the policy itself.

Completely different point, I noticed on my Tesco car insurance renewal invite, it's effective from 00:01hrs 20 March 2013 until 12:00hrs on 19 March 2014. They quote it as 'annual' but they've given me less than a year insurance by half a day! cheek.

forgotmyname

Because home owners are more stable?

If you fail to pay then your less likely to do a runner than if you rent.

phill99

It will be based on underwriting risk. The underwriters have statistics on every aspect of things that may affect a risk. Thy will probably have data that shows if you rent a house you are more likely to have an accident than someone that owns their own home. Therefore you rea higher risk which will affect the premium.

Lychee

thanks. bit annoying that I am a homeowner, I just don't happen to live in the house I own.

Aretnap

Presumably insurer's databases show that homeowners make slightly fewer claims than renters, hence they get charged a slightly lower premium. Home ownership is basically a marker for social class, and people from higher social classes tend to have fewer accidents. They ask your occupation for the same reason.

steve-L

Did anyone read?

Lychee wrote: »

thanks. bit annoying that I am a homeowner, I just don't happen to live in the house I own.

comeandgo

I think its because they can then sell your information or "give" it to one of their associate insurance companies to contact you and try and sell you house insurance. I've never felt it made any difference to any quotes whether you are owner or not. Just becuse they ask a question does not mean you have to answer it if you dont want to.

Herzlos

Presumably owning the home you live in hints at a few things:

1. You're more familiar with the area.
2. It'll be easier for them to recover any debts (you'll probably still live there and be able to provide assets).

I'd assumed they treat all home owners as more responsible than renters, as it's a good sign of stability, but I guess there's just no real option for "I own a home, but it's not the billing address"

InsideInsurance

As others have said, when insurers have a mass of data then they simply work on statistics not logic. If their data shows that people who own a house or have purple hair have a lower total claims experience then they will factor that into their pricing.

You only really start thinking about logic when you have no data to go on and therefore have to predict the result. As soon as you start getting data (irrespective of if you are using it as a rating or not) then you can start analysing it and replace expert judgement with statistical results.

My personal guess on the home ownership aspect would be to do with being settled and therefore slightly less likely to be a boy racer (similar to but at a lesser extent as being married -v- being single)

rev_henry

This is an interesting one. My mother owns a house, just not the house she lives in, so I've always answered 'yes' to that one for her, as she does own A home, so is a homeowner. I'd like to see them challenge that, or even find out. Never seen the wording 'do you own THIS home' though.