Multi-Car Insurance Policies

Multi-car insurance is a policy that covers multiple vehicles, usually located at the same address. It can help drivers save and make managing their policies a lot easier. Here's what households with multiple vehicles need to know to decide if a multi-car insurance policy is right for them.

What is a multi-car policy?

Put simply, a multi-car insurance policy, also known as a multi-vehicle policy, is a car insurance policy that covers two or more vehicles. It provides the same protections as a traditional, single-car policy, including all common car insurance coverage types.

Each insurer sets its own rules that determine which cars can be added to a policy. Many require that all cars on the policy be kept at the same address. However, there are often exceptions for college students who take their vehicles to school as long as their primary address is the same as the policyholder's.

How do multi-car insurance policies work?

Multi-car policies provide the same personal and vehicle protections as a single-car policy. Some coverage options are set at the policy level, while others are set at the vehicle level.

For things like bodily injury liability, property damage liability, and uninsured or underinsured motorist coverage, drivers select a single limit that applies to all vehicles on the policy. They are free to choose how much car insurance to buy as long as they purchase at least their state's minimum coverage.

Things like collision coverage and comprehensive coverage are set at the vehicle level. It's possible to purchase this coverage for some vehicles on the policy and not others. Drivers who are interested in this can also select different deductibles for each vehicle if they want.

What are the benefits of a multi-car policy?

Here are some of the key benefits of going with a multi-car policy over two or more individual car insurance policies.

Discounts

Many of the best car insurance companies offer multi-vehicle discounts to those who insure more than one car with them. We'll look at how much multi-car policies can save drivers in more detail below.

This shouldn't be confused with a multi-policy discount, which is a discount drivers get for bundling different types of insurance, like home and auto, together. Many insurers allow qualifying drivers to claim both discounts, which can reduce their premiums significantly.

Convenience

Working with a single insurer can make managing policies a lot simpler. It's easy to view policy details and renew policies when there's only one to keep track of instead of several.

Stacking coverage

Some states enable drivers with multi-car policies to stack their uninsured and underinsured motorist coverage. This effectively enables them to double their coverage in this area.

For example, if a policy with two vehicles has $25,000 of uninsured motorist coverage per person and $50,000 of coverage per accident for each vehicle, then the policy actually provides $50,000 of coverage per person and $100,000 per accident. This can provide drivers with additional protection without raising their costs significantly.

How many cars can you have on one insurance policy?

Each auto insurer sets their own limits about how many vehicles can be on a multi-car policy. Generally speaking, most auto insurers allow drivers to have at least four cars on their policy. And some allow policyholders to add up to nine. Keep in mind, some car insurance companies may not permit drivers to add vehicles stored elsewhere to the policy, even if they are below these limits.

How much can you save with a multi-car policy?

There are several factors that affect car insurance cost, so the amount a multi-car policy could save drivers is tough to pin down. It can reduce premiums by up to 25%, but this varies depending on the insurance company, the vehicles, and more.

The best way for drivers to figure out how much they can save with a multi-car policy is to get quotes from several insurers. Start by checking out some of the best cheap car insurance providers. Many enable drivers to get quotes online within minutes, so it shouldn't take too much time.

Who has the best multi-car discount?

Multi-car discounts are some of the most common auto insurance discounts around. The following companies offer some of the most significant savings, but this is far from an exhaustive list of providers willing to reward drivers for insuring multiple vehicles.

Geico

Geico offers a 25% multi-car discount, which is one of the best in the industry. This discount applies to any policy covering two or more vehicles. Geico is already known for its affordable rates, so drivers who qualify for this discount could score an especially good deal.

Amica

Amica also has a multi-car discount that could save drivers up to 25% when insuring two or more vehicles. The company has a long list of additional discounts drivers can qualify for to reduce their premium costs even further.

State Farm

State Farm offers a multi-car discount that could shave up to 20% off a driver's premiums. However, actual discounts can vary by state. Those who want to find out how much insuring multiple vehicles could save them can either fill out State Farm's online quote tool or contact a local agent for more information.