Everything You Need to Know About Multi-Car Insurance

If you are like the majority of households in the U.S., you have more than one vehicle and so you may benefit from a multi-car insurance policy. If your current policy does not combine coverage for every vehicle on your property, it may be time to look for a new auto insurance policy that could save you money.

In this guide, we’ll answer all your questions about multi-car insurance. We’ll cover how multi-car insurance policies work, their advantages and disadvantages, and how to add a second vehicle to your existing policy.

What Is Multi-Car Insurance?

A multi-car insurance policy covers more than one vehicle at the same address. The policy is popular because it often includes a significant discount for every car insured and other perks. But, first, let’s see how multi-car insurance policies work and how much you can save.

How Does a Multi-Car Insurance Policy Work?

A multi-car insurance policy operates the same way as a single-car policy.

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

Another aspect of the multi-car policy is that you can decide the insurance coverage you want for each vehicle. So, while all cars on the policy share some coverage options, 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 select collision and comprehensive coverage for just your and your spouse’s cars.

What Are Some Advantages of Multi-Vehicle Discount Policies?

You’ll find many benefits to securing a multi-vehicle policy. Here are three of the most common advantages of multi-car insurance versus insuring vehicles separately:

Big Insurance Savings

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

Best of all, every car on the policy benefits from the multi-car discount. When you combine single policies into a multi-car policy, 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. So how does insurance stacking work? It means combining your benefits to use for a single claim.

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. So if the hospital bills and other losses exceed $25,000, he can stack your coverage on his for a combined limit of $50,000.

What Are Some Disadvantages of Multi-Vehicle Discount Policies?

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

Limited Car Coverage

Every insurer has its cutoff number for how many cars you can insure on one multi-vehicle policy. If your household has many family members who are drivers, you may have limited car coverage issues.

Linked Policy Causes Increased Premiums

With a linked policy, 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

Like single-car insurance, you can 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.

Does Coverage Need to Be the Same on Each Vehicle?

Good question! You 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 would have the same.

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

How Do I Add Multiple Cars to My Auto Insurance Policy?

Adding a second car to your policy is simple. You’ll follow the same steps 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:

• Make, model, and year of the second vehicle
• Vehicle identification number (VIN)
• License plate
• Insurance policy number
• Finance or leasing company information if you’re taking out a loan on the car

If you’re adding multiple cars on existing 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 offer. Compare.com makes it easy to get multi-car insurance quotes from Nationwide, Liberty Mutual, and other reputable insurance providers to confirm you’re getting the best deal.

Shop Around for the Best Car Insurance Rates

If you have multiple vehicles, it may be time to shop around and look into other auto insurance providers. Don’t be afraid to compare rates from different insurance companies to find the cheapest car insurance for you and your family members. By using a comparison tool like the one at Compare.com, you’ll be able to see quotes all in one place.

Get started by entering your ZIP code below:

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 two 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 two cars in my name?

You can insure two 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.