In the Beehive State, we do not think about the interplay among the different aspects of our finances as much as we should. Our financial goals and obligations are inevitably intertwined, so we ought to understand their relationships to one another to make strategic decisions and ultimately win in life.
A good example is the effect of homeownership on auto insurance rates. Qualifying for a Utah housing loan in Ogden, Harrisville, Riverdale, or Pleasant View can make it more affordable to insure your vehicle in many ways. Below are the most notable ones.
Building a Family
Insurance companies believe that marriage can make a person value safety more, which is a critical mindset to avoid accidents and reduce the likelihood of filing a claim.
If you have a family, you are more likely to buy a car with advanced safety features to discourage and combat theft, take vehicle maintenance more seriously, and drive less dangerously. Compared to yourself when you were single, you somehow mature enough to curb any risky behavior you might have had.
Moreover, buying a house after getting married can say a lot about how you handle your finances, especially if you and your spouse jointly applied for the loan. It can show that the two of you are a team and are willing to combine your incomes and share the financial responsibility to avoid late payments.
Moving to a Safer Neighborhood
If you are raising children, you are probably buying a house where there is a low crime rate. A safer neighborhood means there is less threat of vandalism and theft. Your multi-bedroom house probably has its own garage, which is a residential feature all car insurers want to see.
Living Closer to Work
Many of us chose to live in the suburbs after getting married. But if you move closer to your place of work to spend more hours with your family after your shift, it means you are likely to drive fewer miles per year. The less time you spend on the road, the less risky it is for your prospective auto insurer to take you as a customer.
Improving Your Credit
Taking out a home loan might make your FICO scores dip for a while, but it can put you in the “800-point” club in the long run. A long-term installment loan like a mortgage can diversify your credit mix, increase the average age of your credit accounts, and establish a lengthy positive payment history.
In a state where someone with poor credit pays nearly $500 more per year on car insurance than a comparable individual with excellent credit but has been convicted for driving under the influence, you should keep your FICO scores as high as possible.
Bundling Your Insurance Policies
The average age of first-time homebuyers in America is now 32 years old. By the time you finally own your house and insure it too, your life insurance will be much more expensive. To conserve your dollars, it helps you get all of your insurance needs for a single company to receive reasonable discounts.
Any every effort you make to reduce your auto insurance premium is worth the trouble. Having a mortgage might have negative implications to your finances, but helping you adequately insure your vehicle for less is one of the benefits that offset its potential drawbacks.