DOES OWNING A HOME INCREASE CAR INSURANCE RATES?

Just the opposite. If you have both your auto and homeowners insurance through the same carrier, you usually get a small discount on your auto coverage.

No – the auto rates should go down if you insured your home with the same carrier. What your coworker meant was if your liability limits were to low on the auto the agent/company probably advised her to raise the liability limits on the auto insurance which would make the premium more. very smart thing to do if you own a home.

Most insurance companies in the US who offer both auto and homeowners insurance will actually give you a discount for having both policies with them. If you are sued for something which happens in relation to your house, like a dog bit, etc., it would be covered by your homeowners liability, so this wouldn’t make sense. If they’re saying you could be sued for something in connection with your car, and receive your house in the settlement, there may be a small amount of Truth to the statement because of this. You may wish to raise your liability limits on your auto policy at that point. Say, God forbid, you were to cause a death in your vehicle and you were sued. If the other party were awarded 250,000 in damages, and your auto policy liability limits are 50,000, they could go after your home. So, you raise your liability limits to 250,000 to cover the possibility of this happening, thus raising your premiums. Of course the cost difference between the two is normally minimal to begin with. To read more about discounts that are generally available on homeowners insurance, you could read the following article: http://www.knowyouragent.net/HowCanISaveMoneyOnMyHomeownersInsurance.htm