Driver says a $10 monthly renters policy lowered their car insurance by $25

"Renters pay 7% more on average than similar homeowners."

Car insurance is a basic expense for drivers, but one person says there may be an unexpected way to bring the price down.

What to know

On Reddit, the original poster said they were surprised after seeing claims that renters pay 7% more on average than similar homeowners for car insurance, describing it as "another cost of being poor."

They noted that two drivers with the same record, coverage, ZIP code, and vehicle could still be charged different amounts depending on whether they rent or own their home.

Still, one commenter pointed to a lesser-known method for lowering the premium.

"I did renters insurance for $10/month and it knocked $25/month off my car insurance," they said.

Other commenters said homeowners may simply benefit because home and auto insurance are often bundled together, while renters may also be able to get similar savings by pairing auto coverage with a renters policy.

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Not everyone agreed on which housing factor mattered most. One commenter said street parking can raise rates, while another said an insurer does not even ask about parking and only looks at the address. Another argued that having a garage is what really matters because it reduces the risk of theft and damage.

More background

The conversation also reflected a larger affordability concern. Even small monthly costs can add up quickly for renters, and some people in the thread saw the issue as more than just insurance pricing — they viewed it as another example of limited assets leading to higher costs.

Several users said insurers consider more than driving history when setting rates. One commenter said companies in some states also use credit scores and that people with lower scores pay more. Another user who said they had worked at Progressive claimed pricing can also vary based on marital status, whether someone rents or owns, education, and career.

The original poster said learning that an insurer uses homeownership in underwriting was enough to make that company "out of my consideration."

Another commenter summed up the logic more bluntly, saying that having assets is likely linked to paying bills on time and avoiding crashes.

What can be done?

For renters looking for a response, one practical suggestion was to request a renters quote along with auto coverage and see whether it unlocks a discount. Commenters said some major insurers offer bundles that combine renters and auto policies.

One commenter said their homeowners bundle reduced car insurance "from $145/mo with Geico down to $90/mo."

People in the discussion also recommended asking insurers about other factors that could affect the bill, including parking arrangements, multi-driver policy options, and whether an umbrella policy changes the price.

Where can I learn more?

A car insurance bill can change when the policy structure changes or when someone shops around again.

• In Australia, adding a 71-year-old father to one policy cut the bill by $220.

• At Progressive, one six-month requote dropped a driver's premium from $1,627 to $560.

• In Chicago, a family adding a teen driver found State Farm's quote 49% lower.

• In California, a Farmers customer saw a no-claims premium jump by $545.

• In Colorado, full-coverage rates rose 36% as one Denver driver's bill reached $200.