Is There a Discount for Insuring Multiple Cars with the Same Company?
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Car insurance can get expensive quickly, so if you and your family have multiple cars, you’re probably looking for easy ways to save money on your policies. One of the easiest ways to cut costs is to insure all of your cars on the same policy, with the same company. Insurance companies want your business, and they’ll be happy to reward you for insuring multiple cars with a discount. Here’s everything you need to know about insurance policies for multiple cars.
How much money can I save?
The amount you can save by insuring multiple cars with the same company is going to depend mostly on which insurance company you use, as well as the type of cars you are insuring. However, generally, you can expect to save 10 to 25 percent off the total policy by adding a car. You don’t need to start a new policy to get a multi-car discount – you can add it in the middle of your policy, and the discount will apply to the remaining policy period. Keep in mind that your discount does not compound. For example, if you have three cars on your policy, you will get a 10 percent discount on each of them – you wouldn’t receive a 30 percent discount on the first car. Insurance companies that offer it may also allow you to bundle other types of insurance as well, like home and car insurance.
What do I need to set up a multi-car insurance policy?
Setting up an insurance policy for multiple cars is fairly simple. You will just need the VIN numbers for all of the cars you want to insure, as well as the driver’s license information for all of the drivers on the policy. It’s crucial that you register everyone who drives the car when purchasing insurance, to ensure that they will get the necessary coverage if an accident does occur. Rules for setting up a multi-car policy vary by insurer. In many cases, each car on the policy should have the same owner. Some insurers just require that everyone driving the car lives at the same address. Others are stricter and require the cars to be driven and owned by family members.
Generally, you will need to keep the liability coverage and uninsured motorist coverage the same for all cars on your policy. These are the types of insurance that are typically required by your state anyway. This helps prevent confusion when you switch from car to car as you are driving. However, the add-on insurance for each car can be different. For example, you may opt to have comprehensive insurance on the car you drive the most, and not on the other cars on the policy. This gives you some flexibility when setting up your insurance.
In some states, you may be able to stack your coverage when you have a multi-car policy. This means that if you have $50,000 in uninsured motorist protection, you can double it to $100,000. While not all insurers offer this, it’s worth asking about if you are considering adding another car to your policy. It can help you feel safer on the road knowing that you have added protection.
When should I get a multi-car policy?
There are many situations in which you might want to get a multi-car policy. The most common is for couples that share cars and finances. It’s easier to have a multi-car policy, and you’ll both save money as well. You may also want to get a multi-car policy if you purchase a car for your teenage child. Having this car on your insurance makes it much easier to manage the policy because you can easily make both payments at the same time.
You may also want to get a multi-car policy if you have a classic car in addition to your primary vehicle. Even if you don’t drive it often, you will still want at least some coverage for the car in case of unexpected damage. Putting your classic car on the same insurance policy as your primary car will help you save money.
Are there any reasons not to take out a multi-car policy?
With so many benefits to taking out a multi-car policy, you may be wondering if there are any downsides. Generally, taking out a multi-car policy will only benefit you – it gets you a discount, can help you stack your coverage, and makes it easier to pay your insurance bills too.
If you want to add a car to your existing insurance policy, talk to your insurance agent to see what your discount options are. It also never hurts to shop around – there might be another company that offers a better discount for the same coverage.