At least 59% of American households have two or more vehicles available, according to the most recent U.S. Census Survey. When you own more than one car, getting a multi-car policy can save you money, compared to insuring each car individually. The savings will vary by insurance company and other factors, like the make and model of each vehicle.
What is a multi-car policy?
A multi-car policy is an auto insurance policy that covers more than one vehicle. Coverage options and limits can vary by car, but most insurers want each vehicle to be garaged (kept) at the same address. Buying a multi-car policy is usually cheaper than insuring each car individually.
How does a multi-car insurance policy work?
A multi-car insurance policy works like a single-car insurance policy. When you get a quote, you’ll provide the year, make, model and vehicle identification number (VIN) for each vehicle. You’ll also list a driver for each car and how it’s driven, whether for work, school or pleasure, plus expected mileage.
When you apply for multi-car insurance, the insurer will automatically apply the multi-car discount to the policy. If you start with a single-car policy and buy another car down the road, you’ll be eligible for a multi-car discount when adding the second and subsequent cars.
Although liability limits, personal injury protection (PIP) and uninsured/underinsured motorist coverages are the same for all vehicles, you can choose optional add-on coverages by vehicle. For example, if you have a brand new car, you’ll likely want to carry full coverage car insurance. But for your 15-year-old vehicle, you might not need comprehensive and collision coverage since the car isn’t worth much.
Multi-car insurance policy pros and cons
While there are several benefits to having a multi-car insurance policy, there are also some drawbacks to consider.
Multi-car insurance policy pros
- One payment: Rather than having to remember and pay for multiple car insurance policies, a multi-car insurance policy comes with just one payment.
- Savings: Insuring multiple cars with the same carrier entitles you to a multi-car discount, which can provide additional savings compared to insuring each car individually.
- Shared deductible: if something happens to more than one vehicle on the policy, you only have to pay for one deductible. For instance, if a tree falls and damages both cars, you only have to pay a single comprehensive deductible. If both cars are insured separately, you’d have to pay a deductible on each policy.
Multi-car insurance policy cons
- Discount amount can vary: Each insurance company sets its multi-car discount amount, so how much you can save varies by carrier.
- High-risk driver impact: If you have a young driver or high-risk driver on the policy, their rates can impact the entire policy. It may be worth speaking with your insurance agent to figure out any money-saving solutions that might be available in this scenario.
- Lump sum payment: Although keeping track of one policy number and renewal date is easier, if you pay your policy in full, it can be expensive to pay for the entire policy at once.
How much can you save with a multi-car discount?
The amount you can save with a multi-car discount varies by company. Most insurance companies offer a multi-car discount of ten to 25 percent.
Travelers provides up to 8% in savings when you insure more than one car. Progressive’s savings is up to 10%, while State Farm offers up to 20%. Geico’s multi-car discount may be the highest, providing up to 25% savings if you insure multiple vehicles on one policy.
Get at least three quotes from different New Jersey car insurance companies to know how much you can save with a multi-car discount. Comparing the same coverage limits and deductibles can help you determine which company has the best discounts available for your vehicles.
How to add people to your car insurance policy
Adding people to your car insurance policy is a straightforward process. You’ll need to provide the following information to the insurance company:
- The driver’s name.
- Date of birth.
- Driver’s license number.
You can either add them through your online account, the mobile app, or by calling, emailing or going to your insurance agent in person.
Your insurance rates may change when adding people to your car insurance policy. Their driving and claims history, plus their age and years of driving experience, will factor into your car insurance premium.
People who live in your household, like your partner, spouse, children, parents and anyone who regularly drives any of your vehicles, should be listed as drivers on your policy. Adding all drivers can ensure that claims are covered if they get into an accident while driving your car.
