Multi-Car Insurance: How Does It Work? (2024)

FAQs

Is it cheaper to have multiple cars on one policy? ›

There are several benefits of insuring multiple cars on one policy, including: Savings. You often get a discounted rate compared to what you would pay for a single policy. For example, you might save up to 25% or even more.

Although no laws prohibit you from purchasing two auto policies from two different companies, an insurer will not allow you to purchase two policies on the same car. If you have an auto accident, filing two claims with two different insurance providers constitutes insurance fraud even with two auto policies.

If you have a second car you drive occasionally, you can typically add it to the policy you have for your primary vehicle. Many insurance companies offer multi-vehicle insurance discounts, which can help you save money on your car insurance premium.

A multi-car insurance policy just means you have two or more vehicles on your policy. If you have more than one vehicle that you keep at the same address, you can add them all to your policy. Some insurance companies may state that they must be "garaged" at the same address, but an actual garage isn't required.

The average cost for a two-car liability policy is $177 per month. USAA and State Farm are the cheapest insurers for two-car liability insurance policies, with respective averages of $78 and $90 per month. With a multi-car policy, you can have all your policy details for each car in one place.

Opting for comprehensive and collision coverage on the second vehicle, in addition to liability coverage, will generally result in a higher premium rather than a simple liability policy for the second car.

Progressive and many other insurers offer multi-car discounts for having multiple vehicles on one policy.

It can be quite complicated to insure a car that's not in your name. Depending on your situation, you have several options. You can add the car owner to your policy as an additional interest, get added to their policy, transfer the car's registration or get added to it or buy a non-owner policy.

Many companies can insure up to four vehicles on one policy before you need a second car insurance policy. Some companies can insure more than four vehicles on one policy.

It's legal–and sometimes necessary–to have multiple car insurance policies. If, for instance, you have a luxury vehicle and a car you drive most days, it might make sense to have separate policies for each. You can also have more than one policy for the same vehicle, but most experts generally advise against it.

Can multiple car owners be on the same insurance policy? ›

Yes, multiple drivers can share a car insurance policy under certain conditions. With most auto insurance companies, you are required to list all household members, including spouses and children, on your policy if they have a valid driver's license and access to your vehicle.

Adding a new car to your existing policy is super easy if you know your VIN. In most cases, you can go online to your insurance company's website or app and add your new car by plugging in your new car's VIN.

Each car on the multi-car insurance policy has its own level of cover. This gives you the flexibility to choose the amount of excess you want to pay for each vehicle and you can accumulate individual no claim discounts (NCD) as usual.

Multi-car discounts vary by provider, but you can expect to find discounts between 10% and 25% for insuring multiple vehicles. For example, Progressive offers a 12% discount and Geico offers a 25% discount.

Having two auto insurance policies is legal, but filing the same claim with two different insurers isn't. If you receive compensation from two insurance providers for the same claim, it's regarded as insurance fraud, says Motor1.com.

If one of you has a poor driving record, you may want to consider separate policies. Combining a low-risk driver's policy with a high-risk driver's will likely increase the low-risk driver's car insurance rates. However, the total cost for both might still be lower because of other factors like a multi-car discount.

For example, an expensive car model usually has a higher insurance rate for comprehensive and collision coverage. Certain makes and models are also known to cause more damage than other vehicles. The more claims your make and model has and the more it costs to repair, on average, the higher your rate will be.

With our Multi-Policy Discount, insuring more means you pay less. We offer discounts (depending on your state of residence) when eligible Personal Auto and Homeowner coverage are written under the same account.