Multi-Car Insurance Policy Overview & All You Should Know About It

– Multi-Car Insurance Policy –

Multi-Car Insurance Policy: Getting to own a car of your own comes with so many responsibilities, which also includes having car insurance. Having multiple cars will also require you to have an insurance policy on each car; this, therefore, attracts more expenses for you and your family.

One of the easiest ways to save on car insurance is to insure more than one car on the same policy. This is where the Multi-car insurance policy can help.

Multi-car insurance policies are designed for people who have more than one car in the family; thereby saving the cost of insuring one car at a time.

What is Multi-Car Insurance?

Multi-Car insurance is an insurance policy that covers more than one car. It gives you a discount for insuring multiple cars and also offers the same benefits as regular car insurance.

Instead of having to keep track of different policies and renewal dates for different cars; a multi-car policy bundles all the policies with one insurer so they’re held together separately or combined into a single policy that renews at the same time.

Most providers offer a further discount for each car you bring to the policy (usually up to a maximum of five). So if you start the policy with two cars and then introduce a third car; the first and second car will have a discount applied to them as well as the third car.

Why Choose Multi-Car Insurance?

As multi-car insurance provides cover for up to five cars, it can be a wise option for households with more than one vehicle. One policy provides all the paperwork needed for each car and the renewal date is the same. Some insurers offer discounts for every additional car that you add to the policy.

Who is Eligible for a Multi-Car Policy?

If there is more than one car in your household or family, then you’re likely to be eligible. Some examples of people who could get a quote:

• Family home with more than one car.
• A couple living together with two or more cars.
• Couples who live at different addresses but each has a car.
• A family who has children living away but still stays in the same country.
• A person with more than one car.

Multi-Car Insurance Policy Discounts

Many car insurance providers offer multi-car policies with discounts to those who own over one vehicle. This discount can be beneficial in saving you money each month and also replaces the need to pay multiple policies with a single policy. The top insurers that give vehicle owners access to a multi-car discount include:

• Nationwide – 10% on premiums
• Geico – 25% on coverage costs
• Progressive – 10% on premiums
• Liberty Mutual – Average of 10% on coverage costs
• State Farm – 20% on coverage costs
• Farmers – 10% savings on premiums
• Allstate – 10% on coverage costs

Because multi-car insurance discounts are available from nearly all major insurance. So long as the vehicles stay on a policy with the same company, the discount remains in place.

Once a car is moved to a different insurance company; such as when a child takes over his or her own coverage requirements, the discount may be reduced or expire altogether.

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Car Insurance for Multi-Car That You Don’t Share

Say every family member has a car that they drive exclusively. Getting a policy for this scenario is similar to insuring multiple shared cars. Options to consider:

• Primary drivers. You can list different primary drivers with different cars based on who uses them. This works well for families who have individual cars or those looking to save with high-risk drivers. A high-risk driver could be listed on an older or less valuable vehicle to lower the risk for the insurer.
• Driver exclusions. One way to lower risk for your insurance company is to exclude a high-risk driver from certain cars. For example, you could exclude a teen driver from driving an expensive luxury car but still allow them to drive the family minivan.
• College students. If you need to ensure a college student, you can save money when the student is away at school but still drives the car occasionally. Most insurers offer a discount for college students who don’t drive much.

Frequently Asked Questions

Is multi-car insurance cheaper than a standard policy?

With discounts available from most providers, it could be a good way to save yourself some money. However, as with all car insurance policies, the potential savings you make will depend on your own circumstances and driving history as well as those of the other drivers listed on the policy.

Can I insure a car and a motorcycle on the same policy?

No, since the motorcycle would need a motorcycle policy and not an auto policy. 

There is a benefit though from insuring both of these vehicles with the same car insurance company, you should be eligible for a multi-policy discount, which can be up to 20 percent.

What are the benefits of a multi-car policy? 

Besides any discount, you can insure all the vehicles with one policy with one renewal date and one payment date. 

If you get a separate insurance policy for each vehicle you not only miss out on the discount but you also have to keep track of multiple bills and due dates each month.

Can I add other family members’ cars to my policy? 

Typically if someone else owns the car, then that person needs to get his own policy for the vehicle.  However, you may still be eligible for the discount with some insurers.

For instance, if your adult child resides with you and has his vehicle insured through the same carrier as your vehicles, then some insurers will apply a multi-car discount to both policies. 

Point Line

Whether you have one or more than one cars, having multi-car insurance is a necessary part of vehicle ownership. While auto insurance coverage is not inexpensive; you can achieve some degree of savings with multi-car discounts offered by most major car insurance providers.

Multi-car insurance isn’t as straightforward as you think. You may find yourself with a different driver and car situation than other drivers you know. You can find a variety of car insurance options to fit your needs and save money at the same time.

We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.