Everything You Need to Know About Multi-Car Insurance

Multi-car insurance is for drivers with more than one vehicle, and each car is listed on the same car insurance policy. Not only can it be easier to make only one payment and remember one renewal date, but you also only have to pay one deductible if more than one of your vehicles are involved in an accident.

Here’s what you need to know about getting a multi-car discount, including how it works, where you might get the best discount, and how to shop for cheap multi-vehicle insurance.

Key Takeaways:

• Elephant’s and Infinity’s multi-car discounts provide drivers with the highest discounts of up to 46% and 38%, respectively.
• Insuring multiple cars under one policy means more significant savings, one payment, one deductible, and one policy renewal date.
• While your liability limits should match, you can choose a different deductible for comprehensive and collision coverages for each vehicle on the policy.

How Does Multi-Car Insurance Work?

Whether you’re buying a single-car policy or one with mutiple cars, the insurance process works the same — you choose the coverage types and limits that best fit your needs. The insurance company covers injury and property damage claims for all insured cars on your multi-car policy up to your coverage limits.

Some insurers and states might have different requirements for multi-car insurance. For example, if your child has their own car but is away at college, some insurers may allow them to remain on your policy.

Multi-car policies require each vehicle you insure to be registered at the same address and to the policyholder. Although your liability insurance and uninsured motorist coverage limits should match, you can purchase comprehensive coverage, collision, or both and decide which deductibles are best for each vehicle.

Benefits of a multi-car insurance policy

Besides the potential money savings, a multi-car insurance policy may offer you other benefits, including:

• One payment to remember: Instead of remembering multiple payments for each vehicle, a multi-car insurance policy only has one payment to keep track of.
• One policy renewal: Just like you only have one payment to remember, you only have one policy renewal date for all your cars.
• One deductible: If a single incident damages more than one of your insured vehicles, you’re only responsible for one deductible instead of paying a deductible for each car.

Companies With Multi-Car Discounts

Adding a multi-car discount to your auto insurance policy is one of the easiest ways to get the most affordable price on coverage if you own more than one vehicle. Although most insurers offer a multi-vehicle discount, their savings and availability will vary by company and state.

It’s a good idea to compare multi-car insurance quotes from different companies to determine your best option for the most savings.

The table below shows some of the country’s top insurers and the savings potential with a multi-car insurance discount.

Elephant has the highest multi-car discount of all the insurance companies we reviewed, saving drivers up to 46% on their auto policy. Infinity also offers a pretty good discount of up to 38% off. Allstate, Liberty Mutual, Farmers, Travelers, and American Family are among the top 10 largest insurers nationally — but they don’t list their potential savings when insuring multiple vehicles.

How to Get Cheap Multi-Car Insurance

Multi-car insurance might make the most sense for your budget and lifestyle if you own multiple vehicles. Here are the steps to get cheap multi-vehicle insurance coverage.

• Gather your information: When gathering car insurance quotes, you must provide personal information, including the full name, date of birth, and driver’s license number, for all licensed household family members. You’ll also need the current mileage and VIN for each vehicle.

• Decide on coverages: Liability insurance and uninsured motorist coverages are standard among all vehicles on the auto insurance policy. But you can choose different deductibles for comprehensive and collision insurance for each car or forgo one or both if, for example, you decide you don’t need collision coverage on an older car but want it on your newer one.

• Get quotes: Gather quotes from at least three different insurance companies online or through an insurance agent with the same coverage types, limits, and deductibles to get an accurate comparison — even if the deductibles vary by vehicle.

• Compare quotes: Comparing multi-car insurance quotes can help determine which insurer has the lowest rates for your coverage needs, not just the highest discount savings amount.

• Purchase a policy: After identifying which auto insurance company has the best policy for your household, complete the application online or work with the insurance agent to finalize your purchase and secure your savings.

How Many Cars Can You Have on a Multi-Car Policy?

Most car insurance companies have a maximum number of cars you can insure on a single policy — usually five or fewer. But insurers have different rules that can vary by state, so you may be able to insure more or less than five per policy.

Depending on where you live and the insurer, you might need a separate policy if you have more vehicles than the maximum.

Multi-Car Insurance FAQs

Insuring multiple vehicles on the same car insurance policy is a great way to get cheaper premiums, but it’s not for everyone. We answered the most common questions about multi-car insurance to help you decide if it’s right for you.

When would a multi-car insurance policy not make sense?

A multi-car insurance policy might not make sense in some situations — like owning a vintage or classic car, which typically requires a specialty policy. It might also be more expensive to insure a teen driver or high-risk driver with a poor driving record.

If the primary address for the other vehicle differs from yours, you might also need separate policies for each vehicle, even if they’re insured with the same company.

What is the cheapest way to insure multiple vehicles?

The cheapest way to insure multiple vehicles is to compare car insurance quotes with different companies. Rates can vary by insurance company, where you live, and other factors, like age and driving record, so comparison shopping is essential.

Comparing the same coverage types, deductibles, and limits can help you determine which company is the cheapest and whether a single policy for each car or a multi-vehicle policy is the best choice.

Is it cheaper to have two separate car insurance policies?

It might be cheaper to have two separate car insurance policies. Auto insurance companies rate different vehicles, age groups, and driving histories differently. Comparing quotes for multi-car policies and a separate policy for each car you own can help you determine which option is cheaper for your household.

Is it expensive to insure multiple cars?

It can be expensive to insure multiple cars, depending on age, driving record, claims history, and the vehicles you insure. For example, Dodge Chargers are among the most expensive to insure, while the Subaru Crosstrek and Honda CR-V are some of the most affordable, according to Compare.com’s analysis of cheapest cars to insure.

Sources:

1. National Association of Insurance Commissioners, “2022 Property and Casualty Market Share,” Accessed September 15, 2023.