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Multi Car Insurance

A multi-car insurance policy is any policy that covers more than one vehicle. It can mean cheaper car insurance due to the multi-car discount insurance companies offer when you insure more than one vehicle on the same policy.

You could save up to 25% on your overall bill with a multi-car discount, but the amount of the discount varies by company. Read on to find out how having multiple cars on your insurance works and see how much you could save.

KEY TAKEAWAYS
  • A multi-car insurance policy allows you to insure more than one car with one insurance payment and get a discount.
  • You can have different types of coverage on each car, so one can have full coverage while another is liability-only, although liability limits will generally need to be the same.
  • Most insurance companies will allow four to five cars on one policy, although the rules may vary.

What is a multi-car policy?

A multi-car policy provides coverage to multiple vehicles on a single policy. There is no difference in terms of coverage options or what the policy provides, but insurance companies do offer a discount for insuring more than one car. 

All of your premiums will appear on one insurance bill, although each is listed separately and can have different coverage. Most car insurance companies offer multi-car insurance and will give you a discount.

Some have policies specifically designed for more than one car, while with others it's simply more than one car listed on the same account. there may be a single policy number or multiple policy numbers, one for each car. Either way, nearly every company will discount the rates.

How much is a multi-car discount?

While it varies by insurer, but can be as much as 25%.

Among insurers Insurance.com reviewed, Geico had the biggest multi-car discount. Here’s how top companies compare:

  • Geico: Up to 25%
  • State Farm: Up to 20%
  • Travelers: Up to 13%
  • Progressive: Average savings of 4%

It’s important to remember that the amount of the discount doesn’t always mean the lowest rate. Car insurance rates can vary from company to company, so even if the multi-car discount is a smaller amount, the overall rate might be better.

That’s why it’s important to compare car insurance quotes from multiple insurers.

What are the requirements for a multi-car policy?

The basic requirement is that all of the cars must be kept at the same address. After that, car insurance companies’ rules vary. Some insurers offer a discount only if the insured autos are in the same household and insured by related parties. Other insurers will give non-related people a discount as long as they live together.

Some insurers will go a step further and even give a multi-vehicle discount to residents at the same address, even if you have separate car insurance policies with them. There may be a limit to the number of cars you can have on a single policy. Usually, the maximum is four or five. 

You can qualify for the discount mid-term if you place an additional car on your policy. Conversely, if you remove a car mid-policy and are now insuring a single vehicle, the discount will fall off.

Does the coverage need to be the same on each vehicle?

Most insurance companies require that you have the same amount of liability insurance and uninsured motorist coverage on each vehicle, but when it comes to collision and comprehensive and other options, it varies.

You can usually carry collision and comprehensive on one car and not another. The same is true for add-on coverages, such as rental reimbursement or custom car and equipment coverage.

Always remember that the insurance follows the car, and coverages don’t cross over.

When a claim is filed, only the coverage on the car involved will apply. So, if one car has full coverage (collision and comprehensive) and one has only liability, the liability-only car will not be covered if it’s damaged.

What are the benefits of a multi-car policy?

There are a few perks to insuring more than one car on a single policy.

  • Discounts. Most insurers offer a fairly big multiple auto insurance discount. While it varies by insurer, you can expect savings up to 25% with a multi-car policy.
  • Single insurance deductible for all vehicles damaged in a single incident (in some cases). Although not all companies offer it, some will charge the deductible only once if more than one insured car is damaged in the same incident, such as a storm.
  • Car insurance stacking. In states that allow it, you can stack your uninsured or underinsured bodily injury motorist (UM/UIM) coverage when you have multiple vehicles on the same policy.
  • One renewal date. All of your cars will have coverage renewed at the same time.
  • One bill. You’ll only have one car insurance bill to worry about.

Frequently asked questions about multi-car policies

Can you add a car to your insurance policy online?

Most insurance companies allow you to add a car online, but you will have to check with your insurer.

Can you have two car insurance policies?

Yes, you can have two insurance policies on the same car, however, it doesn’t make much financial sense. You are better off increasing the coverage levels on one policy. You can't get two payouts for the same incident, so there's no reason to carry two policies.

How many cars can you have on your insurance?

You can usually insure 4-5 vehicles on your insurance policy if they are all kept at the same address. Check with your insurance company for its specific rules.

Can you have two car insurance policies on two different cars?

Yes, you can have two car insurance policies on different vehicles, but you'll likely end up paying more money for insurance.

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