Insuring two or more cars with the same insurance company can earn you significant discounts with your provider. Of course, how much to insure two cars can vary depending on the type of vehicle and the state you live in.
Insuring Two or More Cars: The Basics
According to AutoInsurance.org, 37 percent of American households own two vehicles and 21 percent own three or more vehicles Most insurance providers will let a driver add up to four vehicles to a single policy. Bundling your car insurance policy with other policies, such as a homeowners policy, is a great way to keep your costs down. There are other ways to cut costs, depending on the types of vehicles a household owns.
AutoInsurance.org notes that most drivers pay around $86 a month for a single-vehicle policy. However, if you add another vehicle to a pre-existing policy, you can get a discount of up to 25 percent. Multicar discounts are among the most common discounts in the industry because so many households own more than one car.
BuyAutoInsurance.com points out that if you own more than one car, it’s usually cheaper to insure them on one policy instead of multiple policies. An insurance company wants as much of your business as possible. To incentivize you to insure all of your vehicles with a particular company, that company will offer discounts for multiple drivers and vehicles in the same household.
According to 4AutoInsuranceQuote.com, on top of receiving a discount, there are other benefits of a multicar insurance policy. These include:
- Paying only one premium each month
- Dealing with only one set of paperwork
- Dealing with only one company
- Renewing your policy for all vehicles on a single day
Requirements for a Multicar Policy
4AutoInsuranceQuote.com notes that all cars listed on a multicar policy have to be registered and parked at the same address. If one of your vehicles is registered at another address other than the one listed on the policy and that car is in an accident, your insurance provider can refuse to pay your claim. In some cases, not disclosing accurate vehicle information can be considered insurance fraud. Depending on what state you live in, if you’re accused of insurance fraud, you might pay a fine or you might end up serving jail time. Always be accurate when providing information to your insurance provider.
In addition to the address requirement, other requirements for a multicar policy include:
- All vehicles must be private passenger vehicles.
- Each vehicle must have liability coverage.
- Two or more vehicles must be insured with the same carrier.
- Some companies require all cars on a policy to be registered in the policyholder’s name. Other companies will let you include cars registered to family members.
Companies That Offer a Multicar Discount
Most major insurance companies offer a multivehicle discount. The amount of that discount varies from company to company. According to ValuePenguin, these are the multicar discounts offered by some of the country’s leading car insurance providers:
- Amica: 15 percent
- Country Financial: 15 percent
- GEICO: 25 percent
- Liberty Mutual: 10 percent
- Nationwide: 20 percent
- Progressive: 10 percent
- Safe Auto: 15 percent
- Safeco: 15 percent
- State Farm: 20 percent
- The General: 15 percent
- The Hanover Insurance Group: 5 percent
- The Hartford: 5 percent
- Travelers: 8 percent
How Does A Multicar Insurance Policy Work?
As ValuePenguin notes, a multicar insurance policy is very similar to a single-car policy. When you’re gathering quotes for a multicar policy, you’ll provide the information for each car you want to insure and who drives them. Some insurance companies will want to know who primarily drives each car. Your discount will automatically apply to your quote when you submit the application.
Some forms of coverage apply to every car on the policy, while other forms of coverage may only apply to specific cars on the policy. For example, every vehicle on the policy will have liability coverage. However, if you want comprehensive and collision coverage, you don’t have to purchase it for every vehicle on the policy. That means you can purchase full coverage for your own car, while your teen driver’s car only has liability coverage. According to ValuePenguin, cars on a multicar policy share the following:
- Liability coverage
- Personal injury protection/Medpay coverage
- Uninsured/Underinsured motorist coverage
The following types of coverage can vary from car to car:
- Comprehensive
- Collision
- Emergency road service
- Rental reimbursement
You can share a multicar insurance policy with your spouse, kids, and other family members who live in the same house. You can even add your roommate, which is a good idea if they happen to borrow your car and end up in an accident.
How to Add a Second Car to Your Insurance Policy
As AutoInsurance.org points out, it’s pretty easy to add a second vehicle to your existing policy. Just call your insurance company and make sure you have the following information on hand:
- The new vehicle’s make, model, and year
- The new vehicle’s identification number (VIN)
- The new vehicle’s license plate number
- Your auto insurance policy number
If you’ve been thinking about switching providers, buying a new car is a great time to shop around for quotes. Car insurance companies constantly change their formulas for calculating rates, and your current provider may not offer the lowest rates for a multiple-car policy. It’s easier than ever to gather quotes, thanks to the internet. To expedite the process, ValuePenguin suggests collecting the following information before you go online to gather quotes:
- Each car’s VIN number
- Estimated weekly or yearly mileage for each vehicle
- The primary driver for each car
- Each driver’s license number and Social Security number
Best Car Insurance for Drivers With Two Vehicles
To get an idea of how much an insurance policy covering two vehicles costs, The Zebra applied for quotes from various companies. According to their research, these are the most affordable companies and how much they charge for a six-month premium covering two cars:
- State Farm: $1966
- Allstate: $1137
- GEICO: $651
- Progressive: $746
- Liberty Mutual: $879
Keep in mind that you might end up paying more or less than these prices depending on what kind of car you drive, where you live, and other personal factors.
When you insure two or more cars with the same insurance companies, you’ll save money and enjoy the convenience of having to manage only one policy. You can also rest assured that all of your vehicles have adequate coverage.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Is it cheaper to add a second car to insurance?
What’s the cheapest way to insure a second car?
How Much You Can Save With Multi-Car Auto Insurance
Car Insurance for Multiple Vehicles
What Is Multiple Car Insurance?
Switching Car Insurance: Everything You Need to Know
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