Everything You Need to Know About Multi-Car Insurance

by Nick Versaw Updated October 29th, 2021

What Is Multi-Car Insurance?

A multi-car insurance policy is a simple concept referring to any policy that covers more than one vehicle at the same address. Multi-car insurance is popular because it often includes a significant discount for every car insured and can also give you other perks. We’ll tell you how multi-car insurance policies work and how much you can save.

Is It Cheaper to Get Multi-Car Insurance?

Yes! Typically, you’ll save 25% or more on your premium, compared to insuring your vehicles separately. The multi-car discount is one of the biggest offered by most insurance companies. The best part: It’s not affected by your driving record or any other factors. You just have to insure two or more vehicles on the same insurance policy.

Will you qualify? And how much money can you save? We’ve got the answers. But if you don’t have time to read all this, you can cut to the chase. At Compare.com we show you real, unbiased quotes straight from top insurance companies. When you get your quote, you’ll see real rates on your screen in just minutes so you can start saving today.

How Does a Multi-Car Insurance Policy Work?

So, how does this money-saving policy work? A multi-car insurance policy operates in the same way as a single-car policy.

When you start the process of getting a quote for your insurance premium, you enter the information for multiple cars instead of one. Car insurance companies may ask more details regarding the primary vehicle on the policy and the primary driver. It’s common for insurers to show the normal rate then apply the discount to the quote, so you can see exactly how much money you’re saving upfront.

Another aspect of the multi-car policy is you can decide the amount of coverage you want for each vehicle. While some coverage options are shared amongst all vehicles on the policy, you can choose specific coverage for certain vehicles.

Let’s say you add your car, your spouse’s car, and your son’s car to your policy. While all three vehicles receive liability coverage, you can choose that only you and your spouse’s cars also receive collision and comprehensive coverage.

Shared Coverage Options on a Multi-Car Insurance Policy Includes:

  • Liability
  • PIP/MedPay
  • Uninsured/Underinsured Motorist
  • Rental Reimbursement

Coverage for Individual Vehicles Includes:

  • Comprehensive
  • Collision
  • Emergency road service
Remember that the type of insurance for each vehicle only applies to the car, not the driver. If your spouse were to borrow your son’s car and got into a collision, their car’s collision coverage would not extend to that car.

The Benefits of a Multi-Vehicle Discount Policy

You’ll find many benefits to securing a multi-vehicle policy. Here are 3 of the most common reasons drivers opt for one instead of insuring their vehicles separately.

Big Insurance Savings

Multi-car insurance discounts can save you a pretty penny on your insurance premium. We found many insurance companies that offer 25-30% savings when you insure more than one car with them, and some give you a multi-car discount that’s even bigger than that. By comparison, other standard discounts (like being a good student or choosing a paperless policy) may only deduct 5-10%.

Best of all, every car on a policy gets the benefit of the multi-car discount. When you combine single policies into a multi-car policy, that means you and everyone else can save on what they’d be paying for separate policies.

A Single Insurance Deductible

Let’s say you wake up at midnight to a not-so-fun surprise: a massive tree has fallen on your car and your spouse’s vehicle. You’ll have to file a comprehensive claim with your insurance company to get them both fixed. Arrrgh!

Here’s a tiny ray of sunshine: If you and your spouse share a multi-car insurance policy, you’ll only have to pay a single deductible. So if your deductible is $500, you pay that, once instead of twice, and you’re done, no matter how much repairs to both cars may cost.

Car Insurance Stacking

Some states allow you to stack your uninsured motorist liability insurance benefits when you have multiple cars on a policy, which is an incredible perk. How does insurance stacking work? It means combining your benefits to use for a single claim.

Here’s an example: Your husband is driving to work when an uninsured driver runs a red light and hits him. The collision sends your husband to the hospital with a back injury and leaves him unable to work for months.

He has $25,000 in uninsured motorist bodily injury coverage for his truck, and you have the same amount. If the hospital bills and other losses exceed $25,000, he can stack your coverage on top of his for a combined limit of $50,000.

Disadvantages of a Multi-Vehicle Policy

While there are many reasons to secure a multi-vehicle policy, there are also some disadvantages to consider. Before switching to a multi-vehicle policy, be sure to consider the downsides of this coverage option.

Limited Car Coverage

Every insurer has its cut-off number for how many cars you can insure on one multi-vehicle policy. If you come from a large family with many drivers, you may run into issues with limited car coverage.

Linked Policy Causes Increased Premiums

A linked policy often results in increased premiums. If one driver needs to make a claim on the policy, it could drive up the premiums for everyone else.

For example, imagine you have a family of four. Your sister gets into an at-fault collision a month before your renewal date. Because she filed a claim two weeks before your policy’s renewal date, it causes the premium to increase for the whole family. What a bummer!

Higher Renewal Rates

Just like single car insurance, you can choose to pay multi-car insurance monthly or yearly. If all the renewals on the policy fall around the same time, you’re looking at one hefty bill to pay for the year. You’ll have to opt for monthly payments with interest —which could chip away at any discounts you enjoy on the multi-car policy.

Less Experienced Drivers Lead to Increased Rates

If you have younger, less experienced drivers in your household, putting them on your policy could lead to a spike in your rates. You’ll also experience increased rates if you add someone with a poor driving record to your policy. Compare rates for individual policies to see if a multi-car policy is right for you.





What Are the Requirements for a Multi-Car Insurance Policy?

Qualifying for a multi-car insurance policy is easy, although different insurers have varying requirements. The basic rule is the cars must be kept (garaged) at the same address. Some require all vehicles to be located at and owned by people in the same household. Others are OK with roommates or other non-related people sharing an insurance policy. And some insurers will give you a multi-vehicle discount even if you have separate car insurance policies (with the same company) at one address.

Some insurance companies limit the number of cars you can have on a single policy. Usually, the max is four or five. To get the multi-car policy, you’ll need to provide standard info: the name on the title and registration, the VIN, and information on the lienholder, if there’s a car loan.

Does Coverage Need To Be The Same On Each Vehicle?

Good question! You do need the same liability limits — for bodily injury liability and property damage liability — for all cars on your multi-vehicle policy. The same is true for uninsured/underinsured motorist coverage. So if you have 50/100/25 coverage on one car, the other vehicles on the policy would have the same.

Collision and comprehensive coverage limits can change from car to car, however. Let’s say you’re buying multi auto insurance for two vehicles: one is a new Buick Enclave, and one is a 20-year-old Toyota Camry. To save money, you could opt for collision and comprehensive on the Enclave and drop those coverages on the Camry.

How to Add a Second Car to Your Auto Insurance Policy

Adding a second car to your policy is simple! You’ll follow the same steps you took when getting car insurance for your first vehicle. You can start by accessing your policy online or calling your insurance agent, whichever you prefer.

Be sure to have the following information with you:
  • The make, model, and year of the second vehicle
  • Vehicle identification number (VIN)
  • License plate
  • Insurance policy number
If the cars you wish to add to your policy are currently on policies with varying end dates, it’s not an issue! All you need to do is set future start dates, and each car will be added to your policy when their old one expires.

Although going through your existing insurer is the simplest way to add a second car to your policy, you should still shop around and compare rates. A change in your insurance policy is the perfect time to see the rates other insurers are offering. Compare.com makes it easy to get online quotes for multi-vehicle policies, so you can make sure you’re getting the best deal.





How to Get Cheap Multi-Car Insurance Coverage Quotes

This is really important: You shouldn’t just add your car to your partner’s policy, or vice-versa. Why? Because you don’t know if your current insurance company will give you the best deal on a multi-car policy. Multi-car discounts vary significantly so you don’t want to accept a 10% discount if another insurer offers you 30%.

Instead, you can follow a few simple steps to compare auto insurance quotes and see who offers the lowest rates. We make it easy! You’ll see the multi-car discount automatically pop up when you enter more than one car in the quote process. Then, you can compare several real-world quotes for the same level of coverage.



How Much Coverage Should You Carry?

The amount of coverage you should carry depends on where you live, how much you can afford, and the value of your vehicle.

Every driver must insure their car with the state’s minimum car insurance requirements. While the state’s requirements are the bare minimum for legal reasons, they might not be enough for your needs.

Here are the most common types of coverage:

Liability Coverage

Liability car insurance kicks in to pay for injuries suffered by another driver or property damage in an accident where you were at fault. Each state has minimum liability requirements, but the minimum coverage could have you paying out of pocket to cover what you owe. To avoid any sticky situations, you should purchase enough liability coverage to protect what you could lose in a lawsuit.

While the amount of liability coverage differs for each person, it’s common to see coverage of 100/300/100. This breaks down to $100,000 per person, $300,000 per accident in bodily injury liability, and $100,000 per accident in property liability damage.

Collision Coverage

This coverage pays for the damages to your vehicle when you’re at fault in an accident. While the amount you purchase depends on the car you insure, you need to determine your deductible. To cut down on monthly costs, you can spring for a higher deductible.

Just make sure you can pay your deductible out of pocket should you be in an accident. Otherwise, you’ll be stuck with a damaged car until you can afford the repairs.

Comprehensive Coverage

Comprehensive coverage pays for other damage to your car that isn’t caused by a collision. This covers a range of problems such as vandalism, falling objects, or even weather damage. Comprehensive coverage is generally sold alongside collision coverage and is often required on leased cars.

Companies That Offer Multi-Car Insurance Discounts

How much can you save? That depends on the insurance company. Here are companies Compare.com works with who are multi-car policy providers:

When Is It a Bad Idea to Combine Insurance Policies?

Let’s say you and your sister are moving in together. She asks you to add her to your car insurance policy because it seems like an easy way to save some cash. But you hesitate: Your sister drives an Audi, while you own an Accord. She got three speeding tickets last year, but your driving record is clean. Is your insurance going to go up if you’re on the same policy? Or will the multi-car discount lower your rates?

There’s an easy way to find out. Compare multi-car insurance quotes for both cars and both drivers! Looking at real-world quotes can give you an accurate sense of the potential savings and pitfalls of a multi-car discount. Just keep in mind most insurance companies will require you to list related people living at the same address as drivers on your policy, even if you maintain separate policies.

FAQs About Multi-Car Insurance

Is it cheaper to put two cars on one policy?

Yes, if you own more than one car, it’s generally cheaper to put both cars on the same policy. This is because insurance companies offer discounts for multi-car insurance.

Can you have 2 cars on the same insurance?

Yes, you can. However, the cars insured on the same policy must be registered and parked at the same address. If your second vehicle is registered at another address and you get into a collision, your insurance company may refuse to pay for your claim.

Is car insurance cheaper if you have multiple cars?

The price of your car insurance depends on your insurer. You can get cheaper insurance for two drivers by switching to a multi-car insurance policy instead of insuring the vehicles individually.

Can I insure 2 cars in my name?

You can insure 2 cars in your name. You must own both cars, and you need to be the primary driver of both vehicles. As long as you’re the primary user of the vehicle, you can insure and drive all the cars on your policy.

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