An escrow account is a payment account your mortgage servicer (who you pay your monthly payments to) sets up once your loan closes to set aside money to pay expenses outside of your principal and interest on your behalf. This would cover the (typically) annual payments of your property taxes and homeowners insurance and it’s held to make sure those costs are paid on time. Many homeowners prefer to make payments monthly rather than managing a large tax bill each year. This doesn’t affect any possible discounts you get from your insurance company for “bundling” your homeowners insurance with your car insurance. Those companies are well-versed in dealing with escrow accounts.