If you have more than one car in your household, a multi-car policy might be the right choice. When you add two vehicles to your policy, most insurers offer a significant discount. A multi-car policy can reduce the cost of insuring a teenage driver under an individual policy. There may also be additional benefits depending on the carrier.
What is a multi-car insurance policy?
Many auto insurance companies offer multiple-car or multi-car insurance policies. Although the norm is to insure at least two or more vehicles, each provider may have different limits on the number of vehicles that can be covered by a policy. Multi-car policies can be purchased through nearly every insurance company. They often come with a discount and are often classified under customer loyalty.
Multi-car insurance policies will be different for every company. While some carriers only require that all vehicles covered be at the same address, others consider the relationship between the insured and the policyholder. Asking carriers about multi-car policies and whether they allow you to add another vehicle to your policy is a good idea.
Multi-car insurance policies have both potential benefits and drawbacks
| Pros | Cons |
|---|---|
| Multi-car Discount: Financial Savings | A single renewal date, with the total premium due at one time. This could make it more expensive. |
| A single premium payment | Different insurers offer different discounts |
| Participating in the deductible | The entire policy could be affected by one high-risk driver |
A multi-car policy can save families with excellent driving records a lot on their premiums. However, it may not be the best option if there are poor driving records . Sometimes, adding a high-risk driver to your policy could increase your premium and possibly reduce the savings. Talk to your insurance provider about how different situations could impact your rates.
How much discount is there for multi-car insurance policies?
Discounts up to 25% on multi-vehicle policies are common. Each provider may offer different discounts depending on your coverage. These are some companies that offer discounts when you insure more than one vehicle.
- Progressive About 4%
- Geico — Up to 25%
- State Farm — Up to 20%
- Nationwide Discounts
What is the cost of a multi-car policy?
The average cost for car insurance is $1674 per year for full coverage. However, rates can vary significantly between carriers and individuals. Rates can be affected by many factors, including age, driving record, location, and condition of the vehicle.
Multi-policy types are very common so getting multiple multi-car insurance quotes can be easy. Car insurance companies will usually ask for the following information.
- Include the year, make, and model of the vehicles you wish to be covered by the policy
- Vehicle identification number (VIN).
- Each vehicle’s odometer reading
- To be included to the policy are the driver’s name, date of birth, and driver’s license numbers
Which coverage should you have on your multi-car policy?
Most states require drivers to have liability insurance. However, the state does not have to require drivers to carry certain levels of collision coverage or comprehensive coverage. Drivers must ensure that each vehicle is covered with the same amount of liability and uninsured motorist coverage in multi-car insurance policies.
You can usually insure any vehicle with different levels or comprehensive coverage. You should be aware that your coverage for different vehicles may vary in terms of the incident and amount you are covered.
Questions frequently asked
Which company has the best multi-car insurance policy for you?
Although almost all companies offer multi-car discounts, it’s difficult to determine which one is the most affordable. There are many factors that can impact the cost of car insurance. The cheapest multi-car insurance company may also offer coverages for other areas like ridesharing. Experts recommend getting quotes from multiple insurers to determine the best one for you.
What are the stacked insurance limits?
A multi-car policy can have stacking insurance as an additional benefit. Stacking can help you save money and allow you to “stack”, the uninsured or underinsured driver coverage limits you have for each vehicle. This can often increase your overall limits by a significant amount.
Is multi-car insurance worth it?
Multi-car policies can be a great way to manage multiple vehicles and even reduce your premium. It may not be the most cost-effective way to insure vehicles. Premiums may be higher if there are more than one driver in a family with poor driving records. Comparing similar coverages from different providers is a great way to find the right policy for you.