Correlation between home ownership and car insurance

Is there a correlation between home ownership and car insurance?

In some countries, home ownership is a factor in determining risk when setting car insurance premiums. This is based on the assumption that because home ownership implies a higher level of responsible actions, you are probably a better driver.

A recent survey sought to check whether this assumption had any validity, based on the total number of claims filed. The results do show some correlation between home ownership and fewer filed claims, but there is little agreement on the reasons for this correlation. A more reliable correlation is age – the higher the age, the lower the incidence of accidents. The discrepancy between home renters, home owners, and those still at home with their parents is largest among 18- to 24-year-old drivers.

The managing editor of, Des Toups, casts doubt on the validity of this data. Many people get confused between causality and correlation. For now, insurance companies are not falling over themselves to offer lower premiums to home owners (unless it’s in the form of a bonus for buying auto insurance from your home insurance company, or vice versa).